Wireline

General
For substantially all of 2007, the wireline business group had three business divisions: access, optics and Internet Protocol (or IP), each of which included operations and products from both historical Alcatel and Lucent. The portfolio of products supplied by the wireline group is deployed anywhere from the core to the access networks, in legacy and next-generation networks, facilitating the delivery of voice, data and video services over broadband. While we believe we are well positioned in wireline, at the end of 2007 we instituted a product cost improvement program to generate additional savings as part of the plan we announced on October 31, 2007 to improve profitability and reposition the business. In 2007, our wireline business group revenues were 6,003 million (excluding inter-company sales), representing 47% of the carrier segment revenues and 34% of our total revenues.

Access

We are the worldwide leader in broadband access, with 44% of digital subscriber line (or DSL) revenues in 2007 according to industry analyst firm DellOro. The access market is evolving with the recent introduction of Gigabit optical fiber-based Passive Optical Networking (or GPON) technology. In 2007, we were awarded GPON contracts by several carriers including Verizon, AT&T and France Telecom. The fixed access market is driven on one hand by the increasing penetration of broadband in fast growing economies such as China and on the other by the introduction by carriers of advanced services that combine triple play services. Our newest family of access products, which is IP-based, provides support for both DSL and GPON and allows carriers to optimize the combination of these technologies, depending on the network configuration and the area of installation. These products are designed to accommodate expanding demand for new applications requiring greater bandwidth and higher availability. For example, our products permit carriers to offer voice, data and video (triple play functionality) over a single access line, and to deliver to their customers virtually unlimited broadcast channels, video on demand, HDTV (high definition TV), VoIP (voice over IP), high speed Internet, and business access services. The functionality of our products serves the needs of the carriers urban, suburban and rural customers. We believe that our large installed DSL base provides us with a competitive advantage as many of our DSL customers build optical fiber deeper into their access networks, which is closer to the end-user, in order to enhance their broadband service offerings with fiber-based services.
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TD-SCDMA

We have an alliance with Datang Mobile to foster the development of the TD-SCDMA (Time Division-Synchronized Code Division Multiple Access) 3G mobile standard in China, where we deployed trial TD-SCDMA networks in 2006. In addition, we have a number of partnerships for the development of equipment and services based on Advanced Telecom Computing Architecture (or ATCA), a standard that reduces the cost and complexity of our customers mobile infrastructure.

CDMA2000/EV-DO

CDMA2000 is the worlds leading 3G (third generation) wireless technology with over 400 million subscribers worldwide according to the CDG (CDMA Development Group). It is deployed in spectrum ranging from 450 Mhz to 2100 Mhz, with each carrier network deployed in smaller increments of spectrum than competing wireless product offerings. CDMA2000 provides operators with a path to increase capacity and coverage with minimum hardware and software upgrades. The most current technology, known as 1XEV-DO (Evolution Data Only) Revision A (Rev A), enables operators to offer high speed data supporting two-way, real-time data applications such as VoIP (voice over Internet Protocol), mobile video, push-to-talk and push-to multimedia. The next enhancement, Revision B, is expected to provide improvements significantly increasing bandwidth with minimal hardware and software upgrades. Despite increases in both CDMA subscribers and traffic volumes, we believe the market for CDMA infrastructure is mature and starting to decline. We have revised our long-term outlook for this market, taking into account recent changes in market conditons as well as the potential negative impact of future technology evolutions. As with any product or technology that reaches a mature point in its life cycle, we will moderate our R&D investments in the current generation of CDMA to reflect the declines that will naturally take place in this market over time. We also expect some new opportunities to arise within the overall CDMA market, such as VoIP and the next version of the CDMA standard, and we will continue to invest to support our customers plans to incorporate those capabilities. As a mature technology, CDMA is also proving attractive to emerging markets as a cost-effective way to deliver both high capacity voice and data with an evolution path to next generation capabilities.

Wireless Transmission

We offer a comprehensive point-to-point portfolio of microwave radio products meeting both European telecommunications standards (or ETSI) and American standards-based (or ANSI) requirements. These products include high, low and medium capacity microwave systems for carriers transmission systems, mobile backhauling applications, fixed broadband applications and private applications in vertical segments like digital television broadcasting, defense and security, energy and utilities. As a complement to optical fiber and other wireline systems, our portfolio of wireless transmission equipment supports a full range of network/radio configurations, network interfaces and frequency bands with high spectrum efficiency. We market wireless transmission equipment that can be managed by our complementary software platforms in a fixed or mobile environment. In 2007 we implemented trials of a new generation of microwave packet radio systems, designed to enable the IP transformation in the mobile backhauling networks, with key customers. We anticipate that this new product will be commercially available in the first half of 2008.

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Net cash provided (used) by investing activities. Net cash provided by investing activities was 539 million in 2007 compared to 761 million in 2006. Excluding the impact of the cash and cash equivalents held by Lucent at acquisition date, equal to 1,391 million, net cash used by investing activities would have been 630 million in 2006. This increase in 2007 in net cash provided (excluding the impact of the Lucent transaction) was mainly due to the disposal of marketable securities that amounted to 1,050 million in 2007, compared to 144 million in 2006, and to the cash used for the acquisition of Nortels UMTS business in 2006 for 240 million. The cash proceeds from disposal of fixed assets (tangible and intangible assets and previously consolidated entities) was relatively stable in 2007 compared to 2006. On the other hand capital expenditures increased from 684 million in 2006 to 842 million in 2007 mainly due to the inclusion of twelve months of Lucent activity in 2007 compared to one month in 2006. Net Cash Provided (Used) by Financing Activities. Net cash used by financing activities amounted to 1,106 million in 2007 compared to net cash used of 699 million in 2006. The primary changes were the increase in the amount of repayment of short-term and long term debt (760 million in 2007 compared with 505 million in 2006) and the dividend payment of 366 million we made on our ordinary shares and ADSs in 2007 compared with a dividend of 219 million in 2006. Disposed of or discontinued operations. Disposed of or discontinued operations represented net cash provided of 223 million in 2007 (including the proceeds of 670 million related to the disposal of our ownership interest in two joint ventures in the space sector to Thales and the cash used by operating activities and financing activities of the discontinued activities during the period) compared with net cash used of 11 million used in 2006.

Capital resources

Resources and cash flow outlook. We derive our capital resources from a variety of sources, including the generation of positive cash flow from on-going operations (although this was not the case this year), the issuance of debt and equity in various forms, and banking facilities, including the revolving credit facility of 1.4 billion maturing in April 2012 and on which we have not drawn (see Syndicated facility below). Our ability to draw upon these resources is dependent upon a variety of factors, including our customers ability to make payments on outstanding accounts receivable, the perception of our credit quality by lenders and investors, our ability to meet the financial covenant for our revolving facility and debt and equity market conditions generally. Our short-term cash requirements are primarily related to funding our operations, including our restructuring program, capital expenditures and short-term debt repayments. We believe that our cash, cash equivalents and marketable securities, including short-term investments, aggregating 5,271 million as of December 31, 2007, are sufficient to fund our cash requirements for the next 12 months. Approximately 415 million of our cash and cash equivalents are held in countries, primarily China, which are subject to exchange control restrictions. These restrictions can limit the use of such funds by our subsidiaries outside of the local jurisdiction. We do not expect that such restrictions will have an impact on our ability to meet our cash obligations. During 2008 we expect to make cash outlays for our restructuring programs of approximately 800 million and to make capital expenditures of approximately 800 million, including development expenditures that are capitalized. We will repay approximately 137 million in aggregate principal amount of our 5.50% bonds that mature on November 2008. During 2008, depending upon market and other conditions, we may also continue our bond repurchase program in order to redeem certain of our outstanding bonds. We can provide no assurance that the currently estimated cash resources will be sufficient to cover our actual cash requirements. If we cannot generate sufficient cash from operations to meet cash requirements in excess of our current expectations, we might be required to obtain supplemental funds through additional operating improvements or through external sources, such as capital market proceeds, assets sales or financing from third parties, the availability of which is dependent upon a variety of factors, as noted above. Credit ratings. As of April 3, 2008, our credit ratings were as follows:

6.8 OUTLOOK FOR 2008

We see both positive long-term forces and some negative short-term forces affecting the market. On the positive side, developing countries are continuing to invest in their networks. The transition to IP in every aspect of the network continues, from fixed to mobile and from the core to the edge. There is a growing impact of video and content on broadband networks. Our customers are seeing the benefit of 3G wireless broadband services in the form of increased data revenues, which should drive additional spending to further enhance their broadband capabilities. In addition, there are a growing number of subscribers all around the world. In the shorter term there are some downside risks. This continues to be a very competitive industry and a competitive environment. Some customers are assessing network-sharing arrangements that may have a negative impact on capital expenditures, but which might also offer opportunities from a services standpoint. There is also some uncertainty around the macroeconomic environment and the potential repercussion of a recession in the United States on operators capital expenditures. Given all these issues, and taking into account the weight of our business in the U.S., our initial projections for 2008 indicate that the global telecommunications equipment and related services market should be flat to slightly up at a constant /U.S.$ exchange rate and slightly down at current exchange rates. We will continue to execute our three-year plan that has been underway since the business combination with Lucent to restructure our business. The ongoing implementation of a more selective pricing approach and our product cost reduction program should enable us to improve our gross margin. We also intend to make continued good progress in our fixed costs reduction program.
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Given the expected improvement in the gross margin as well as a reduction in operating expenses (excluding the negative, non-cash impacts of Lucents purchase price allocation which are expected to be (500) million this year), we expect operating margin (excluding the negative, non-cash impacts of Lucents purchase price allocation) in the low to mid-single digit range as a percentage of revenues in full year 2008. We now estimate that the seasonality of historical Alcatel has not materially changed as a result of the business combination with Lucent and therefore expect a sequential decline in revenues of 20% to 25% in the first quarter of 2008. As a result, in the first quarter of 2008, we expect to incur a loss from operating activities before restructuring costs, impairment of assets, gain/(loss) on disposal of consolidated entities and post-retirement benefit plan amendment (excluding the negative non-cash impacts of Lucents purchase price allocation which are expected to be approximately (125) million in the first quarter).

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At a meeting on November 30, 2006, the Board defined the respective powers of the Chairman and the CEO. It broadly defined its own powers while limiting those of the CEO, who must therefore submit the following decisions to the Board of directors for prior approval: the update of the Groups annual strategic plans, and any significant strategic operation not envisaged by these plans; the Groups annual budget and annual capital expenditure plan; acquisitions or divestitures in an amount per transaction higher than 300 million (enterprise value); capital expenditures in an amount per transaction higher than 300 million; offers and commercial contracts of strategic importance in an amount per transaction higher than 1 billion; any significant strategic alliances and industrial and financial cooperation agreements with annual projected revenues in excess of 200 million, particularly if they involve a significant shareholding by a third party in the capital of our company; financial transactions having a significant impact on the accounts of the Group, in particular the issuance of debt securities in excess of 400 million; any amendments to the National Security Agreement (NSA) among Alcatel, Lucent Technologies Inc. and certain United States governmental entities; the appointment of members of the Security Committees of Alcatel USA and Lucent Technologies Inc. pursuant to the NSA; the appointment of officers of Alcatel USA and Lucent Technologies Inc.; any significant changes to the allocation of tasks (and corresponding capital expenditures) between Bell Labs and other Research and Development centers of Alcatel-Lucent; and any significant changes to the legal structure of Alcatel-Lucents subsidiaries in the United States. In addition, the Board of directors granted to Ms. Patricia Russo, in her capacity as CEO, specific delegations of power concerning the issuance of debt, securities for up to 1 billion (which include the 400 million our CEO has the power to issue without the prior approval of our Board), stock option grants, trading in our shares and guarantees and security granted by our company. The Board of directors also granted to Mr. Serge Tchuruk, in his capacity as Chairman of the Board of directors, the authority to represent the Group in its high-level relations, particularly vis--vis public institutions.
Selection criteria and independence of the Directors
The appointment of new Directors must comply with selection rules which are applied by our Corporate Governance and Nominating Committee. Members of the Board must be competent in the Groups high-technology businesses, have sufficient financial expertise to make informed, independent decisions about financial statements and compliance with accounting standards, and be entirely independent of the companys management based on the criteria set out below. The independence criteria applied by the Board of directors are based on the definition provided in the AFEP-MEDEF report, the recommendations of the New York Stock Exchange, the provisions of the Sarbanes-Oxley Act, and on the general principle that Directors, regardless of years of service, are independent so long as they have no direct or indirect relationship of any kind with our company, its subsidiaries or senior management that could prevent them from exercising free judgment. Our Board of directors also includes at least one independent Director who has financial expertise, as recommended by its Operating Rules. In March 2008, our Board of directors conducted a detailed review of its independence criteria and reaffirmed them. Specifically, with regard to the rule concerning the length of time before a former employee can be considered an independent Director, the Board applied the New York Stock Exchange rule of three years after the expiration of the Directors employment contract. Based on all of these criteria, the Board determined that Linnet Deily, Lady Jay, Daniel Bernard, W. Frank Blount, Jozef Cornu, Robert Denham, Edward Hagenlocker, Jean-Pierre Halbron, Karl Krapek, Daniel Lebgue, Henry Schacht and Jean-Cyril Spinetta, that is, 12 of its 14 members (85%), are independent.

Pension and other benefits
Pension plans for the CEO and certain Directors
As mentioned earlier, Ms. Russo is covered by the Lucent Retirement Income Plan. Certain Directors who were or are part of the management of the company, benefit from the private pension plan applicable to the senior executives of the Group, who represent approximately 80 executives. Such executives are employees of AlcatelLucent or of its French subsidiaries which are owned more than 50% by Alcatel-Lucent and which are members of this plan. This defined benefit scheme set up in 1976 supplements, for each beneficiary, the private plan of the French General Association of Pensions Institutions for Managerial Staff (AGIRC), offering benefits exceeding the upper limit provided for by that plan, according to a system and method of calculation similar to those of the AGIRC plan. The Group is bound by a contract with an insurance company funded by Alcatel-Lucent as from the time of settlement for each beneficiary (which normally occurs at the age of 65) and within the limit of the pension obligations. Except for the contractual commitments described above, we have no commitments towards the Directors or the CEO that constitute remuneration, allowances or benefits due or likely to be due on account of termination or change of duties, subsequent to such termination or change of duties.
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Amount reserved for pension and other benefits
The aggregate amount of the benefit obligation related to pension or similar benefits for our Directors and our Management Committee as a group, at December 31, 2007 was 40.2 million (compared to 53.1 million in 2006). Of this amount, 28.1 million relate to the Directors and the Chief Executive Officer (compared to 33.5 million in 2006) and 12.1 million relate to the members of the Management Committee (compared to 19.6 million in 2006). The corresponding amount of pension reserve accounted for due to these covenants made for the benefit of the members of the Board of directors and of the Management Committee of our company, taking into account plan assets, amounted to 12.0 million as of December 31, 2007.
7.5 STOCK OPTIONS AND OTHER SECURITIES HELD BY DIRECTORS AND SENIOR EXECUTIVES

OPTIONS GRANTED IN 2007

Beneficiaries
S. Tchuruk P.F. Russo (1) Management Committee
Alcatel-Lucent Plan Alcatel-Lucent Plans
Average exercise price ()

9.10 8.89

Number

800,000 2,740,000

Expiration date

2015 2015

OPTIONS AND OTHER INSTRUMENTS EXERCISED IN 2007

Rights and obligations relating to the shares
Shareholders are liable only up to the nominal amount of each share held. Any call for payment in excess of such amount is prohibited. Each share gives right to a portion of the companys profits, in the proportion prescribed by the Articles of Association. Dividends and other income from shares issued by the company are paid under the conditions authorized or provided for under the regulations in effect and in such a manner as the General Meeting of Shareholders, or, alternatively, the Board of directors may decide. Rights and obligations remain attached to a share regardless of who holds the share. Ownership of a share entails automatic acceptance of the companys Articles of Association and resolutions of the General Meeting of Shareholders. Shares are indivisible vis--vis the company: joint owners of shares must be represented by a single person. Shares subject to usufruct must be identified as such in the share registration.

Changes in the capital

a) Capital increases
In accordance with applicable law, our capital may be increased by cash or in-kind contributions, pursuant to a resolution of the Extraordinary General Meeting approved by two-thirds of the shareholders present or represented. This power may also be delegated to the Board of directors. In the event of a delegation to the Board of directors, the Chief Executive Officer may be granted specific powers to make the capital increase. The capital may also be increased: by the capitalization of reserves, profits or issuance premium pursuant to a decision of the General Meeting of Shareholders taken with the approval of a simple majority of the shareholders present or represented; in case of payment of a dividend in shares decided by an Ordinary General Meeting of Shareholders; or upon tender of securities or rights giving access to the companys capital (bonds convertible into shares, bonds repayable in shares, warrants to purchase shares or other securities).

b) Capital decreases

The share capital may be decreased pursuant to a decision of two-thirds of the shareholders present or represented at an Extraordinary General Meeting of Shareholders, either by decreasing the nominal value of the shares or by reducing the number of shares outstanding.
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Management of the company
Our company is managed by a Board of directors consisting of at least six and not more than fourteen members. If there is any vacancy following the death or resignation of one or more Directors, the Board of directors must temporarily appoint for each vacancy one replacement Director, such appointment being subject to approval at the next General Meeting of Shareholders. The appointment of a replacement Director in the event of a vacancy by reason of death or resignation requires the simple majority of the Directors present or represented. Each Director must hold at least 500 company shares.

/s/ ERNST & YOUNG et Autres Jean-Yves Jgourel
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2005 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and the Board of Directors of Alcatel: We have audited the accompanying consolidated balance sheet of Alcatel and subsidiaries (the Group) as of December 31, 2005, and the related consolidated statements of income, recognized income and expense, changes in shareholders equity, and cash flows for the year then ended (all expressed in millions of euros). These consolidated financial statements are the responsibility of the Group's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. Our audit included consideration of internal control over financial reporting as a basis of designing audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Groups internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of Alcatel and subsidiaries at December 31, 2005, and the consolidated results of their operations and their cash flows for the year then ended, in conformity with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board.
/s/Deloitte & Associs Neuilly-sur-Seine, France April 7, 2008
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CONSOLIDATED INCOME STATEMENTS
(In millions except per share information) Notes Revenues Cost of sales Gross profit
2007 17,792 (12,083) 5,709 (3,462) (3,107) 153 (2,954)
(5) & (6) (4) & (23e)
$25,982 (17,645) 8,337 (5,056) (4,537) 223
12,282 (8,214) 4,068 (1,911) (1,579) 109 (1,470)
11,219 (7,086) 4,133 (1,816) (1,409) 108 (1,301)
Administrative and selling expenses Research and development expenses before capitalization of development expenses Impact of capitalization of development expenses Research and development costs Income (loss) from operating activities before restructuring costs, impairment of assets, gain/(loss) on disposal of consolidated entities and post-retirement benefit plan amendment Restructuring costs Impairment of assets Gain/(loss) on disposal of consolidated entities Post-retirement benefit plan amendment Income (loss) from operating activities Interest relative to gross financial debt Interest relative to cash and cash equivalents Finance costs Other financial income (loss) Share in net income (losses) of equity affiliates Income (loss) before tax, related reduction of goodwill and discontinued operations

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CONSOLIDATED STATEMENTS OF RECOGNIZED INCOME AND EXPENSE

(In millions)

Financial assets available for sale: Valuation gains/(losses) taken to equity Transferred to profit or loss on sale Cumulative translation adjustments Cash flow hedging Amount taken to equity Recycling in income (loss) Actuarial gains (losses) and adjustments arising from asset ceiling limitation Tax on items recognized directly in equity Other adjustments Net gains (losses) recognized in equity Of which transferred to profit and loss Net income (loss) for the period Total recognized profits (losses) for the period Attributable to: - Equity holders of the parent - Minority interests

Notes (17)

47 (27) (993) (4) (7) 68 (14) (917) (24) (3,477) (4,394) (4,432) 38
36 (323) (4) 4 (8) 656 (216) (8) (61) 10
$(40) (1,450) (6) (10) 99 (20) (1,339) (35) (5,078) (6,417) (6,472) 55
2005 (69) (13) (56) 2 (27) (52) (56) 963 1,264 1,153 111

(25) (9)

Translation of amounts from into $ has been made merely for the convenience of the reader at the Noon Buying Rate of 1 = $1.4603 on December 31, 2007.
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CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY
(In millions of euros and number of shares) Total attributable to the Net equity income holders of Minority (loss) the parent interests TOTAL 922 4,901 1,69 (5) (6) 5,274 1,69 (5) (15)
Number of shares Balance at December 31, 2004 after appropriation Total recognized profit (loss) for 2005 (1) Capital increases Share-based payments Treasury stock Other adjustments Balance at December 31, 2005 before appropriation Appropriation of net income (loss) Balance at December 31, 2005 after appropriation Total recognized profit (loss) for 2006 (1) Acquisition of Lucent Technologies (2) Other capital increases Equity component of Lucents convertible debentures (2) Lucents warrants (2) Lucents outstanding stock options (2) Share-based payments Treasury stock Dividends Other adjustments Balance at December 31, 2006 before appropriation Appropriation of net income (loss) Balance at December 31, 2006 after appropriation Total recognized profit (loss) for 2007 (1) Other capital increases Early redemption of 8% convertible debenture Share-based payments Treasury stock Dividends Other adjustments Balance at December 31, 2007 before appropriation Proposed appropriation

(In millions of euros) Years and thereafter indefinite Total Recognized Unrecognized 22 4,201 3,896 8,515 Total 40 4,616 4,300 9,435
In addition, temporary differences were 401 million at December 31, 2007 ((454) million at December 31, 2006 and 1,044 million at December 31, 2005), of which 1,585 million have been recognized and 1,986 million have not been recognized ((2,330) million and 1,876 million respectively at December 31, 2006 and 50 million and 994 million at December 31, 2005). Recognized negative temporary differences mainly correspond to deferred tax liabilities that have been recorded resulting from Lucent purchase accounting entries (in particular intangible assets).
Note 10 Discontinued operations, assets held for sale and liabilities related to disposal groups held for sale
Discontinued operations for 2007, 2006 and 2005 are as follows: In 2006 and 2005: activities related to Alcatel's two joint ventures in the space sector, railway transport systems activities and critical systems integration activities not dedicated to operators or suppliers of telecommunications services to be disposed of or contributed to Thales. In addition, the initial capital gain (loss) on discontinued operations that were sold in 2004 was adjusted in 2006 and in 2005, due to ongoing legal proceedings related to these disposals and is also booked as income (loss) on discontinued operations. In 2007: activities related to Alcatel-Lucent's ownership interests in two joint ventures in the space sector disposed of to Thales. In addition, the net capital gain on the disposal of the railway transport systems activities and critical systems integration activities not dedicated to operators or suppliers of telecommunications services to Thales and on the sale to Thales of our ownership interests in two joint ventures in the space sector in April 2007 is also booked as income (loss) on discontinued operations, as well as some adjustments on initial capital gain (loss) on discontinued operations that were sold or contributed in previous periods.
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Income statements of discontinued operations are as follows:
(In millions of euros) 2005 1,916 (1,440) 476 (213) (162) (13) 108
Revenues Cost of sales Gross profit Administrative and selling expenses Research and development costs (1) Net capital gain (loss) on disposal of discontinued operations Income (loss) from operations Financial income (loss) Other income (loss) (2) Income (loss) from discontinued operations
(178) 35 (30) (8) (2) 610
2,099 (1,614) 485 (230) (136) (14) 38 158
The capital gain on the contribution of railway transport system activities and critical systems integration activities to Thales has been computed based upon a selling price of 941 million, equal to the share price of the 25 million shares issued by Thales on the date of the transaction. This value is different from the Thales determination of the actual value of the assets contributed of 1,000 million, which Thales disclosed in the document describing the transaction it filed with the AMF and which Thales had booked as a capital increase in its statutory financial statements. The net capital gain on the disposal of our ownership interests in two joint ventures in the space sector and the railway transport systems activities and critical systems integration activities after tax was 0.6 billion. Including income tax expense.

Main changes accounted for in 2007 No major change related to new acquisitions during the period. Impairment losses have been recorded in connection with the 2007 annual impairment test and the additional impairment tests performed in the fourth quarter 2007 (see below). A reduction of goodwill was also accounted for in relation to the recognition during 2007 of initially unrecognized deferred tax assets in Lucent, as prescribed by IAS 12 "Income Taxes (refer to note 9). Main changes accounted for in 2006 Additions to goodwill recorded in 2006 relate primarily to the business combination with Lucent (see note 3). Goodwill allocation Reduction in goodwill presented in the caption Disposals and discontinued operations concerns the goodwill related to the businesses to be disposed of or contributed to Thales (see note 3). Main changes accounted for in 2005 Additions to goodwill recorded in 2005 relate primarily to the acquisitions of Native Networks and the industrial activities (Alenia Spazio) and service activities (Telespazio) of Finmeccanica (see note 3). Reduction in goodwill presented in the caption disposals and discontinued operations relates to the proportionate consolidation of the satellite industrial activity goodwill (fully consolidated in 2004 but consolidated at 67% in 2005) (see note 3). All goodwill recognized in 2007, 2006 and 2005 has been allocated to the cash generating units by December 31st of the relevant year. The goodwill amounts relating to business combinations, for which the initial accounting period has not yet been completed at December 31, 2007, are preliminary
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Impairment tests of goodwill One impairment test of goodwill was carried out at the IFRS transition date. This impairment test did not lead to the recording of any impairment losses. An additional impairment test was carried out at December 31, 2005 on the SSD business division (Space Solutions Division), as a result of the business combination that occurred during the year (see note 3). The test did not lead to the recording of any impairment losses. The 2006 annual impairment tests of goodwill (performed in May/June 2006 on the basis of published data at March 31, 2006) did not result in the recognition of any impairment losses in 2006. The additional impairment test of goodwill performed in December 2006 (on Alcatels goodwill excluding Lucents and Nortels goodwill) due to the reorganization of the reporting structure did not result in the recognition of any impairment losses in 2006. The 2007 annual impairment test of goodwill was performed in May/June 2007 and resulted in recognition of impairment losses accounted for in the second quarter of 2007 on tangible assets for an amount of 81 million, on capitalized development costs and other intangible assets for an amount of 208 million and on goodwill for an amount of 137 million. These impairment losses of 426 million were related to the group of cash generating units (CGUs) corresponding to the business division UMTS (Universal Mobile Telephone Communications Systems)/ W-CDMA (Wideband Code Division Multiple Access). The impairment charge was due to the delay in revenue generation from its products as compared to its initial expectations, and to a reduction in margin estimates for this business. As described in note 2c, due to the continuing decrease in the market value of Alcatel-Lucents shares during the fourth quarter of 2007 and the companys revised 2007 revenue outlook, an additional test was performed in the fourth quarter 2007 and resulted in recognition of an additional impairment loss on goodwill of 2,522 million. Impairment losses of 2,109 million are related to the CGUs in the CDMA & EVDO (Code Division Multiple Access & Evolution Data Only business division), 396 million are related to the CGUs in the IMS (Internet Protocol Multimedia Subsystem business division) and the remainder is related to the CGUs corresponding to the business division Network Integration. The impairment charge in the CDMA & EVDO business division is due to a revision in the long-term outlook for this activity, taking into account the recent change in market conditions as well as potential future technology evolutions. These impairment losses are presented on a single specific line item on the face of the income statement (impairment of assets"). The recoverable amount of the impaired assets has been determined as described in note 1g. These tests have been performed after allocating the goodwill related to the Lucent business combination to the different business divisions (i.e. groups of cash generating units) based upon the carrying values of the business divisions at the beginning of the quarter according to the Business Division structure existing before the change of our business organization that was announced and put in place in November 2007. As prescribed by IAS 36 "Impairment of Assets", a third impairment test was performed in 2007, due to the reorganization of the reporting structure that occurred in November 2007, based upon the same recoverable values and carrying values of the business divisions as of December 31, 2007. This test was performed only to ensure that, after the change in our reporting structure, the recoverable values of each business division were higher than the corresponding carrying values. No additional impairment loss was accounted for in relation to this third impairment test. In those groups of cash generating units (CGU please refer to note 1g) in which there is significant goodwill, the data (as of December 31, 2007) and assumptions used for the last goodwill impairment tests performed in 2007 were as follows:

(in millions of U.S.$) 1 percentage point Increase Decrease (10) 9 (169) 150
Effect on total of service and interest cost components Effect on post-retirement benefit obligation
Yield curves matching Alcatel-Lucent benefit obligations were derived from 30-year Treasury rates. The resulting risk free rates from these yield curves were adjusted to available yields on high-quality fixed income investments with maturities corresponding to its benefit obligations to develop discount rates at each measurement date. Yields and changes in yields of several funds, as well as the original Citigroup pension yield curve, were also considered in setting the discount rates. The average duration of Alcatel-Lucent primary pension obligations and post-retirement health care obligations were 9.47 years and 6.09 years, respectively, as of December 31, 2007.
218 - 2007 ANNUAL REPORT ON FORM 20-F
Alcatel-Lucent considered several factors in developing its expected rate of return on plan assets, including its historical returns and input from its external advisors. Individual asset class return forecasts were developed based upon current market conditions, for example, price-earnings levels and yields and long-term growth expectations. The expected long-term rate of return is the weighted average of the target asset allocation of each individual asset class. Alcatel-Lucents long-term expected rate of return on plan assets included an anticipated premium over projected market returns received from its external advisors of 0.25% for its management plan and 0.22% for its occupational plan as of December 31, 2007. Its actual 10-year annual rate of return on pension plan assets was 9.22% for the period ending December 31, 2007. On December 8, 2003, the President of the United States signed the Medicare Prescription Drug Improvement and Modernization Act of 2003 (the Act). The Act introduced a prescription drug benefit under Medicare (Medicare Part D), as well as a federal subsidy to sponsors of retiree health care benefit plans that provide a benefit that is at least actuarially equivalent to Medicare Part D. Alcatel-Lucent currently sponsors retiree health care plans that provide prescription drug benefits to its U.S. retirees that its plan actuaries have determined are actuarially equivalent to Medicare Part D. Alcatel-Lucent elected to prospectively recognize the effects of the Act during the fourth quarter of fiscal 2004, which reduced the accumulated post-retirement benefit obligation by approximately U.S.$ 600 million. On January 21, 2005, the Centers for Medicare and Medicaid Services issued a Final Rule in the Federal Register for implementing the Medicare Prescription Drug Benefit that clarified the methodology for determining actuarial equivalence and the amount of the federal subsidy. The impact of the Final Rule did not materially affect Lucent post-retirement benefit cost and related obligation.

238 - 2007 ANNUAL REPORT ON FORM 20-F
The actions were consolidated in the United States District Court, Southern District of New York. Alcatel filed a motion to dismiss this action on January 31, 2003 and a decision on the motion was rendered on March 4, 2005. The judge rejected a certain number of the plaintiffs demands with prejudice. He also rejected all the remaining claims under the federal securities laws for lack of specificity in the pleadings, but with leave to file a further amended complaint. This was filed, and Alcatel again moved to dismiss. On June 28, 2007, the court dismissed the complaint. The time to appeal has expired without an appeal having been filed. Accordingly, the matter is closed. Costa Rica Beginning in early October 2004, Alcatel learned that investigations had been launched in Costa Rica by the Costa Rican prosecutors and the National Congress, regarding payments alleged to have been made by consultants on behalf of Alcatel CIT, a French subsidiary now called Alcatel-Lucent France ("CIT"), or other Alcatel subsidiaries to various public officials in Costa Rica, two political parties in Costa Rica and representatives of ICE, the state-owned telephone company, in connection with the procurement by CIT of several contracts for network equipment and services from ICE. Upon learning of these allegations, Alcatel commenced an investigation into this matter, which is ongoing. Alcatel terminated the employment of the then president of Alcatel de Costa Rica in October 2004 and of a vice president Latin America of CIT. CIT is also pursuing criminal actions in France against the latter and in Costa Rica against these two former employees and certain local consultants, based on CITs suspicion of their complicity in a bribery scheme and misappropriation of funds. The United States Securities and Exchange Commission (SEC) and the United States Department of Justice (DOJ) are aware of the allegations and Alcatel-Lucent has stated it will cooperate fully in any inquiry or investigation into these matters. The SEC and the DOJ are conducting an investigation into possible violations of the Foreign Corrupt Practices Act ("FCPA") and the federal securities laws. If the DOJ or the SEC determine that violations of law have occurred, they could seek civil or, in the case of the Department of Justice, criminal sanctions, including monetary penalties against Alcatel-Lucent. In connection with these allegations, on December 19, 2006, the DOJ indicted the former CIT employee on charges of violations of the FCPA, money laundering, and conspiracy. On March 20, 2007, a grand jury returned a superseding indictment against the same former employee and the former president of Alcatel de Costa Rica, based on the same allegations contained in the previous indictment. On June 11, 2007, the former CIT employee entered into a Plea Agreement in the US District Court for the Southern District of Florida and pleaded guilty to violations of the FCPA. Neither the DOJ nor the SEC has informed Alcatel-Lucent what action, if any, they will take against Alcatel-Lucent and its subsidiaries. In connection with the aforementioned allegations, on July 27, 2007, the Costa Rican Prosecutors Office indicted eleven individuals, including the former president of Alcatel de Costa Rica, on charges of aggravated corruption, unlawful enrichment, simulation, fraud and others. Shortly thereafter, the Costa Rican Attorney Generals Office and ICE, acting as victims of this criminal case, each filed amended civil claims against the eleven criminal defendants, as well as five additional civil defendants (one individual and four corporations, including CIT) seeking compensation for damages in the amounts of U.S.$ 52 million (in the case of the Attorney Generals Office) and U.S.$ 20 million (in the case of ICE). The Attorney Generals claim supersedes two prior claims, of November 25, 2004 and August 31, 2006. On November 25, 2004, the Costa Rican Attorney Generals Office commenced a civil lawsuit against CIT to seek compensation for the pecuniary damage caused by the alleged payments described above to the people and the Treasury of Costa Rica, and for the loss of prestige suffered by the Nation of Costa Rica (social damages). The ICE claim, which supersedes its prior claim of February 1, 2005, seeks compensation for the pecuniary damage caused by the alleged payments described above to ICE and its customers, for the harm to the reputation of ICE resulting from these events (moral damages), and for damages resulting from an alleged overpricing it was forced to pay under its contract with CIT. Alcatel-Lucent intends to defend these actions vigorously and deny any liability or wrongdoing with respect to these claims. Alcatel-Lucent is unable to predict the outcome of these investigations and civil lawsuits and their effect on CITs business. If the Costa Rican authorities conclude criminal violations have occurred, CIT may be banned from participating in government procurement contracts within Costa Rica for a certain period. Alcatel-Lucent expects to generate approximately 8 million in revenue from Costa Rican contracts in 2008. Based on the amount of revenue expected from these contracts, Alcatel-Lucent does not believe a loss of business in Costa Rica would have a material adverse effect on the Alcatel-Lucent group as a whole. However, these events may have a negative impact on the reputation of Alcatel-Lucent in Latin America. Taiwan Certain employees of Taisel, a Taiwanese affiliate of Alcatel-Lucent, and Siemenss Taiwanese distributor, along with a few suppliers and a legislative aide, have been the subject of an investigation by the Taipei Investigators Office of the Ministry of Justice relating to an axle counter supply contract awarded to Taisel by Taiwan Railways in 2003. It has been alleged that persons in Taisel, Alcatel-Lucent Deutschland AG, a German subsidiary of Alcatel-Lucent involved in the Taiwan Railway contract and Siemens Taiwan, and subcontractors hired by them were involved in a bid rigging and illicit payment arrangement for the Taiwan Railways contract. Upon learning of these allegations, Alcatel commenced and is continuing an investigation into this matter. As a result of the investigation, Alcatel terminated the former president of Taisel. A director of international sales and marketing development of the German subsidiary resigned during the investigation.

Perfect Connectivity in a Flash
Compatibility overview for: Jabra is a registered trademark of GN Netcom A/S www.jabra.com/DE

Headset Innovation

Professional headsets
Stay in touch throughout the office Jabra BIZ 2400 series 10x better. Superior audio with Neodymium speakers Gold contacts for crystal-clear voice transmission Improved noise-cancelling Break-proof boom with 360degree rotation Surgical steel for maximum strength Kevlar reinforced cord Supersoft ear cushions and a choice of three wearing styles Clothing clip with ID tag 3-year warranty Jabra Go 6400 series Stay in Touch wherever you go One headset for all your phones Touch screen/touch sensors for optimum call control Multi-use connectivity: mobile phone, softphone and desk phone Easy installation with SmartSetup wizard Wideband sound and Digital Signal Processing for clearer calls Dual microphone Noise BlackoutTM Superior comfort with three wearing styles (neckband accessory for Jabra GO 6470) Up to 100 metre wireless Bluetooth range (25 m for mobile phone)* Jabra PRO 9400 series Stay in touch around the office One headset for all your phones Touch screen & touch sensors for optimum call control Multi-use connectivity: desk phone, softphone and mobile phone Easy installation with SmartSetup wizard Wideband sound and Digital Signal Processing for clearer calls Dual microphone Noise Blackout Swap easily between different wearing styles Up to 150 metre wireless range*
Image shows the Jabra BIZ 2400 duo with Bluetooth adapter.
Image shows the Jabra Go 6470 with base station and touch screen.
Did you now? Ready for Unified Communications (UC). Jabra UCready headsets offer true wideband sound and plugand-play capability with UC systems from leading suppliers, including Cisco IP Communicator, IBM/Lotus Sametime and Microsoft Office Communicator 2007. More at: www.jabra.com/uc
Image shows the Jabra PRO 9470 mono with headband.
*Range varies according to the environment in which the headset is used.
Partnership and technology partner status HEADSETS WITH SEAL OF APROVAL Certifications are a recognised quality feature for all products. They not only guarantee compliance with manufacturer-specific standards, but also ensure the availability of additional functionality.

Compatibility

Headset Choices

Customised

Four simple steps to the best headset selection for your customers 1. What is your predominant work environment? Advantages of WIREless headsets: - Better freedom of movement - Accepting calls while away from the workstation - Privacy option for difficult calls - Switch between narrowband and wideband
desk centric office centric office/mobile

Corded headset

Wireless headset
Wireless multi-use headset
2. In which environment will you be using the headset? Headsets will help optimise your work environment because they. - Protect you from sudden noise peaks - Keep the reception volume under 85 dB - Lower the noise level in the office - Filter background noises - Offer the best voice and sound quality

home/office

moderate

office

CC/office
Single office or home office environment

Open office environment

Contact centre or noisy office environment
3. How many people share your office? Mono Headset - Best choice for quiet/moderate noise office environments - Interchangeable with three wearing styles - Does not shield external noise completely - Conversation with colleagues is possible DUO HEADSETS - Best solution for noisy office environments - Lower the noise level - Hearing quality increases - Ability to concentrate improves

less people

more people

Mono headset

Duo headset
4. What devices will be connected to the headset? Advantages of headsets: - Future-proof thanks to seamless connection to all devices - A must if a landline telephone will not be installed - Interface between conventional desk phone and IP-based telephony - Hands-free conversations - Strain relief for shoulder and neck muscles - More flexibility and fun while working - A professional appearance

DECT-GAP Phone

Computer (softphone client)

Mobile phone

Corded desk phone
Headband AS INDIVIDUAL AS YOU ARE Three different wearing styles offer flexibility and comfort.

Neckband

Earhook

jabra CordED headsets

For Alcatel Lucent TelephoneS - www.Jabra.com/alcatel

Select an existing phone

IP Touch 8 Series: 4068(EE) / 4038(EE) / 4028(EE) IP Touch 9 Series: 4029 / 4039
Reflexes / IP Reflexes First & Easy / Premium & Advanced / 40xx-Serie
Operator exchange consoles A 4049 / A 4059

Temporis 25 / 45 / 500

Accessories (adapter/ amplifier) needed
Connector cable (QD 3.5mm jack) Item No. 8735-019 Amplifier GN8000 MPA Item No. 01-0119
Connector cab GN1200 Item No. 88001

Jabra BIZ 2400, Omni

1 Mono: Item No. 2403-320-Duo: Item No. 2409-320-105

Jabra GN2100

6 Mono: Item No. Duo: Item No. 0

Jabra BIZ 2400, NC

3 Mono: Item No. 2403-820-Duo: Item No. 2409-820-105

Jabra GN2100,

8 Mono: Item No. Duo: Item No. 0

Jabra GN2100, ST

6 Mono: Item No. 01-Duo: Item No. 01-0243

Jabra BIZ 2400

3 Mono: ItemNo. Duo: Item No. 2409

Jabra GN2100, NC

8 Mono: Item No. 2106-82-Duo: Item No.01-0247

Jabra GN2000, ST

11 Mono: Item No. 2003-320-Duo: Item No. 2009-320-105

Jabra GN2000, NC

Matching headset and item number
13 Mono: Item No. 2003-820-Duo: Item No. 2009-820-105

quiet office

noisy CC/office

Corded headsets

Jabra Model Connectivity Microphone/-boom Speakers Omni Directional/FreeSpin Mono/Duo Noise Cancelling/FreeSpin Mono/Duo Noise Cancelling/FreeSpin Duo Omni Directional/SoundTube Mono/Duo
BIZ 4 BIZ GN2400 USB GN2100

Mobile 100 / 200 / 400

DECT 4074
Alcatel-Lucent IP Desktop Softphone 4068

Alcatel Softphone 4980

Alcatel Pimphony
Connector cable (QD 2.5mm jack) Item No. 8800-00-46
Connector cable (QD 2.5mm jack) Item No. 8800-00-52
USBAdapter Link 280 Item No. Link 280 -09 RCC possible

No accessories needed

0,ST 01-0241 01-0243 , NC 106-82-105 01-0247 0, NC 03-890-105 9-890-104
Jabra BIZ 2400 USB, NC, Duo 5 Item No. 2499-829-105 Jabra GN2000 USB, ST Duo 15 Item No. 20001-091 Jabra GN2000 USB, NC 16 Mono:Item No. 20001-Duo:Item No. 20001-092

8 Mono: Item No. 2106-82-Duo: Item No. 01-0247
Jabra headsets optimized for your PC-based softphone. More at: www.jabra.com/de/ softphoneguide

9 GN2100

GN2000

15 GN2000 USB

GN2000 USB
oise Cancelling/FlexBoom Mono/Duo
Omni Directional/SoundTube Mono/Duo
Noise Cancelling/FlexBoom Mono/Duo
Omni Directional/SoundTube Duo

Jabra wireless headsets

IP Touch 9 Series: 4029 / 4039 Electronic call acceptance possible
IP Touch 8 Series: 4068(EE) 4038(EE) / 4028(EE) Electronic call acceptance possible
Reflexes / IP Reflexes First & Easy / Premium & Advanced / 40xx-Serie / Temporis 25 / 45 / 500
Operator exchange A 4049 / A 40
Connector cable Item No. 14201-09 Connector cable Item No. 14201-20 No accessories needed

Jabra PRO 9470

18 Item No. 9470-66-904-105

Jabra PRO 9460

19 Mono: Item No. 9460-65-707-Duo: Item No. 9460-69-707-105

Jabra GO 6470

21 Item No. 6470-15-207-505

Jabra GN9350e, NC

22 Item No. 9326-607-405

Jabra GN9330e, NC

23 Item No. 9327-508-405

Jabra GN9125, NC, EHS

25 Mono: Item No. 9125-28-Duo: Item No. 9129-808-215

Jabra GN9125, NC

Jabra GN9125, NF, EHS 27 Item No. 9125-48-15 Jabra GN9125, Omni, EHS 28 Item No. 9125-30-15

Jabra GN9125, NF

27 Item No. 9125-48-15

Jabra GN9125, Omni

28 Item No. 9125-30-15
moderate office Bluetooth & DECT
moderate office Bluetooth

wireless headsets

Jabra Model Connectivity Microphone/-boom Speakers

18 PRO 20 PRO GO GN9350e

GN9330e/93
Noise Cancelling/flex Mono/Duo
Noise Cancelling/fixed Mono
Noise Blackout/MidiBoom Mono
Noise Blackout/fixed Mono

Noise Cancelling Mono

MEANING OF ARROW COLOuRS

e consoles 059

Alcatel-Lucent IP Desktop
Alcatel Softphone 4980 RCC poss. with GN9350e and GN9330e USB from Rel. 4.021b and OXE R7.1 (f53017a)
Alcatel Pimphony RCC possible: GN9350e and GN9330e USB Win XP SP1, OXO 535.1 and Pimphony R6.1 (build 1210) Win 2000 SP4, OXO 410.37.1 and Pimphony R5.1 (build 363)
EHS HEADSET Call acceptance is possible directly from the headset (electronic call acceptance).
STANDARD HEADSET The phone does not support electronic call acceptance.
VoIP Internet telephony. Headsets for use with computers or VoIP phones. No accessories needed
18 Item No. 9470-66-904-101

TCO-STANDARD

19 Mono: Item No. 9460-65-707-Duo: Item No. 9460-69-707-101
21 Item No. 6470-15-207-501

22 Item No. 9356-607-401

Jabra GN9330e USB, NC

24 Item No. 9337-509-401

Jabra GO 6430
29 Item No. 6430-17-20-201

Jabra M5390 USB

30 Item No. 5317-408-309
Jabra headsets optimized for your PC-based softphone. More at: www.jabra.com/de/softphoneguide
TCO is a recognised global standard. TCO-certified products are tested to meet environmental, ergonomic and energy efficiency criteria. Additionally, wireless headsets are also tested for adherence to emission standards. More details are available at: www.jabra.com

noisy office

moderate office

quiet office Bluetooth

330e USB

GN9125

27 GN9125

28 GN9125

29 GO 6430

30 M5390 USB

Noise Cancelling/FlexBoom Mono/Duo Noise Filtering/MidiBoom Mono Omni Directional/MicroBoom Mono Noise Blackout/fixed Mono
Noise Filtering/fixed Mono

g/fixed

HELPful Information
Why choose Jabra Headsets?
Better Sound Jabra headsets incorporate the finest in acoustic technology to ensure users experience consistently superior call sound clarity. All headsets feature PeakStop technology. Combined with noise-cancelling microphones, this ensures you hear and are heard clearly. PRODUCTIVITY Experience the freedom and increased efficiency of handsfree communication. With a headset you can continue working productively, with both hands, while talking on the telephone. Complete tasks quickly and easily while improving the speed of your daily work.
SECURITY All Jabra wireless office headsets digitally encrypt signals between the headset and base station. This guarantees conversation confidentiality, ensuring you can talk freely, secure that the only people listening in are the ones you are talking to.
TALK TIME All Jabra wireless headsets provide daylong talk time with the headset charging in the base station between calls. All models in the Jabra GN9300e series offer interchangeable batteries as an accessory, which enables unlimited talk time, keeping you connected around the clock.

MOBILITY AND RANGE Enjoy freedom of movement. Our wireless headsets offer an unparalleled office range of up to 150 metres. Liberate yourself from the limitations of traditional office telephones and create a more efficient workspace where you can talk and still walk around gathering information.
Conference calls The Jabra GN9350e and the Jabra PRO 9470 offer the optimal solution for conference calls. Up to four people can take part in a wireless conference call by docking their headsets in the base station of the caller and continuing to speak and be heard with clarity from anywhere in the office environment. Comfort It is easier and more comfortable to make and take calls at work wearing a headset with carefully adjusted acoustics, lightweight structures and an ergonomic design plus a selection of wearing styles to match the needs of any user. A headset provides comfort and helps to avoid aching muscles and neck strain from cradling the telephone handset between the users head and shoulder.
Durability Choosing a high-quality Jabra headset gives you complete reliability. It will not only save you money in replacement costs, but you will also be spared downtime and repair hassles. Jabra headsets are built to last. Every headset is subject to extensive pre-launch testing that covers everything from cable flexing over boom arm rotations to acoustic tests. And our standards are as tough as our headsets.

Reliable Partners

Smart Products. Smart Partnership. GN has a dedicated partner marketing team tasked with developing communications tools, promotions, sales incentives, sales tools and special programmes to support our partners. Your personal contact will assist you in selling the extensive range of GN products. As a GN Netcom partner, you and your colleagues are invited to join our partner programme, designed to provide you with updates on our products, partner events, training dates and other relevant information. Please contact us for more detailled information. Customer Support Phone: +Mail: info@Jabra.com GN Netcom 77 Northeastern Blvd. Nashua NH 03062 United States
Through its Jabra brand, GN Netcom is a world leader in innovative headset solutions. With around 900 employees and sales offices around the world, GN Netcom develops, manufactures and markets a broad range of wireless headsets and speakerphones for mobile users and both wireless and corded headsets for contact center and office-based users. GN Netcoms business activities also include its original equipment manufacturing (OEM) business. GN Netcom is a subsidiary of GN Store Nord A/S.