May 29, 2007


Mr. Ken Raschke

President, Lucent Retirees Organization

231 Pinetuck Lane

Winstom-Salem, North Carolina   27104


Dear Ken:


Pat Russo asked me to respond to your letter of May 27th to make sure you understand that we take this issue very seriously and have consulted with experts in the field who have dealt with issues involving the loss of personal information.  As a result of those engagements, we have deployed and are deploying "best in class" practices including:


  • Initiated an internal investigation immediately upon being notified that a disk appeared to be missing
  • Contacted the U.S. Secret Service and state and local authorities once we had confirmed that the disk appeared to be lost or missing
  • Required each of the vendors involved with this issue to conduct an additional thorough search and an internal investigation to ensure the disk was not misplaced, after two of the vendors indicated to us that they had not fully exhausted their searches for the disk.  We issued the press release the day those searches were completed.
  • Sent an email to all employees impacted and contacted the LRO for their help in informing retirees.
  • Issued a press release so that the story would be picked up by the media and therefore would help ensure anyone impacted would be informed 
  • Asked vendors to suspend transmitting personal information in this manner until more secure procedures are developed.
  • Established an 800 number for people to call with questions
  • Arranging for premium credit monitoring services free of charge for one year, for anyone impacted
  • Sending a letter by mail to all former Lucent employees and retirees and their adult dependents informing them of what has happened and information about the credit monitoring services we have arranged for them
  • Advising employees, retirees and their dependents of some immediate steps they should take to protect their credit information
  • Posted on the Alcatel-Lucent web site a set of questions and answers to help those impacted understand what happened and what steps they can take to protect themselves and followed it up with an additional set of questions and answers to provide answers to the most frequently asked questions.


Mr. Raschke, we have engaged numerous subject matter experts in this matter and based on their counsel we deployed communications that are considered "best practices" in terms of timeliness and the information they contained to address this issue including the actions we have taken.  I should also add that, at this point, we are not aware of any instance where the information on the disk was used inappropriately. 


I appreciate your concern and also want to thank you for your assistance in helping us get the information to retirees quickly.




Steve Reynolds

General Counsel



Cc: Pat Russo

       Frank D'Amelio   


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