Patricia Russo Quotations

We have seen China's economy growing at 8-9% over the past few years and in particular within the telecom industry there has been rapid developments in technology and innovation enhancements,

We absolutely have sufficient liquidity to fund the operations of the business and return to break-even,

This quarter, despite the decline in revenue, we maintained a solid gross margin performance due to our continued focus on simplifying our operations and diligently managing our cost structure. Based on the review of our expectations for fiscal 2006 and ongoing interactions with our customers, we are confident that our revenue performance will be much stronger for the remainder of the year.

Lucent's goal is to build on the success of the past and deepen the trust and confidence we enjoy with our customers and suppliers in China,

Since bringing this matter to the SEC's attention, we have addressed these issues with increased controls and disclosures in our organization,

Only in the last couple of weeks have we seen the effects of a general tightening on spending that has caused us to modify our expectations, ... We still see growth, but we thought it prudent to share that we see a tempering.

China is a great example of where we have been successful using local resources,

Henry and the team have put in place and are implementing a solid, credible plan for turning this business around. Lucent and this industry have always been a home to me and I look forward to working with this team to accelerate the execution of our plan.

We expect to take a fair and balanced approach. We have mutually identified synergy opportunities.

I think what we're seeing is a much tighter holding on spending than we would have expected, ... It's really a general tightening that we've seen across the board that's been commensurate with releases we've seen in that time period.

Some of our recent wins in China demonstrate our services capabilities,

We have been very focused on trying to find the right balance between caring for the needs of our retirees and making determinations about what is affordable. We will continue to manage costs in that way.

We see China as an important growth area for Lucent's global businesses and an important resource center,

We are very excited about this combination. We see this as opportunity to create a clear, competitive advantage in the marketplace.

We clearly intend to have speed as our bias.

At this point there is nothing that could create a problem.

Competition is increasing and size and scale really matter.

The strategic logic driving this transaction is compelling. The communications industry is at the beginning of a significant transformation of network technologies, applications, and services - one that is projected to enable converged services across service-provider networks, enterprise networks, and an array of personal devices. This presents extraordinary opportunities for our combined company to accelerate its growth.

Our deepest, heartfelt sympathy goes out to everyone affected by the scope of this tragic natural disaster, ... At times like these, the performance and reliability of communications networks are more critical than ever. That's why our Lucent and Bell Labs teams are drawing upon their knowledge and expertise in network disaster recovery to help the Gulf Coast victims and our customers to rapidly restore and rebuild the region's vital communications networks.

Our customers will benefit from a partner with the scale and scope to design, build and manage increasingly converged networks that deliver the most advanced communications services to the market. That is what this combination will deliver with an unparalleled focus on execution, innovation and service for our customers. Serge and I will work hard with our leadership team to draw upon the key strengths and common culture of technical excellence within each company to uniquely position the combined company for success, growth and value creation from next-generation networking and services.

as an important growth area for Lucent's global businesses and an important resource center.

This is an industry where size and scale matter.

As you know it's been a challenge in the last year because of the pause with respect to investment and the anticipation of those 3G licenses.

It's still unclear exactly when the economy and spending will return.

I remember ... talking about whether there would be decisions in 2005 and then, you know, it keeps moving out and moving out and moving out, and now it's sometime perhaps in '06 and now it's sometime later in '06.

Without a doubt, the prospects (of China-US economic and trade relationship) are bright,

The group will be neither French nor French-American. It will be a global organization whose headquarters and directors will be based in Paris.