Lucent Technologies Announces Several Contracts and Groundbreaking New Product for 3G Networks at 3GSM World Congress 2006

Lucent Technologies (NYSE: LU) today announced several contractwins in Europe and a groundbreaking new product for third-generation(3G) mobile networks at the 3GSM World Congress 2006 trade show takingplace here this week. Lucent also released the results of primarymarket research evaluating consumer interest in blended lifestyleservices enabled by IP Multimedia Subsystem (IMS) networks.

One of the key contracts is an agreement with the EuropeanCommission, Directorate General Information Society and Media, forLucent and its R&D arm, Bell Labs, to provide a comprehensive analysisof the factors influencing the availability of Europe's electroniccommunications infrastructure, including its Internet and mobilenetworks. In addition, Lucent unveiled the Lucent Base Station Router(BSR), a Bell Labs innovation that integrates key components of 3Gmobile networks into a single network element, thus "flattening" whatis typically a more complex architecture. O2 is currently conductinglaboratory trials of the Lucent BSR in Germany.

"These contracts and the introduction of the Lucent BSR underscoreLucent's expertise and knowledge in evolving and optimizingcommunications networks for service providers, enterprises andgovernment customers worldwide," said Cindy Christy, president ofLucent's Network Solutions Group. "At 3GSM World Congress, we areshowcasing solutions that help service providers create and deliversimple, seamless, secure, portable, and personal multimedia servicesto their subscribers."

Lucent also released the results of primary research that foundthat UK service providers have a potential market of more than 16million customers who have a high interest in blended lifestyleservices that consolidate and help them better manage theirphonebooks, contacts and buddy lists, or that use location-basedtechnology.

Summary of Announcements

Lucent's 3GSM World Congress 2006 announcements include a broadrange of products and services contracts, the introduction of theLucent BSR, a new global alliance for Lucent's IMS solution and more.

Lucent BSR

-- The Lucent BSR combines a base station, radio network controller and IP router into one system and can dramatically simplify and reduce the cost of operating IP-based mobile networks, cut the cost of upgrading 3G networks - including HSDPA (High-Speed Downlink Packet Access) and CDMA2000 (Code Division Multiple Access) - to support high-speed data services, and improve the quality of service as perceived by subscribers.

"We are extremely impressed with the Lucent Base Station Router asour laboratory trial of the product has demonstrated its ability tohelp us cost-effectively deliver mobile broadband and converged dataservices to subscribers utilizing a ground-breaking, simplified 3Gnetwork architecture," said Charly Rohrsen, CTO for O2 Germany. "Withthe BSR, Bell Labs has once again delivered a breakthrough technologyinnovation for the wireless industry."

Contracts

-- The European Commission's selection of Lucent to conduct a comprehensive analysis of the factors influencing the availability of Europe's electronic communications infrastructure includes the identification and analysis of the impact of threats and vulnerabilities on core (backbone), mobile and wireless networks - with a goal of developing recommendations for action by public authorities and industry players to secure Europe's electronic communications infrastructures and mitigate the consequences.

-- T-Mobile International extended its network analysis and optimization services contract with Lucent focused on improving the end-to-end performance of T-Mobile International's UMTS (Universal Mobile Telecommunications System) networks in Germany, Austria, the Netherlands and the United Kingdom. These services also will include T-Mobile's 3G HSDPA networks when they become operational.

-- vistream, the first German Mobile Virtual Network Enabler (MVNE) located in Dortmund, selected Lucent to deploy an advanced network and real-time rating and charging solution for voice and data services for vistream in Germany.

IMS - Global Alliance & GSMA Interoperability Trial

-- Lucent reached a global agreement with Ubiquity Software Corporation to deliver key IMS-ready applications and related communications technology to service providers worldwide. Lucent is integrating Ubiquity's market-leading SIP (Session Initiation Protocol) Application Server and applications into its industry-leading IMS-based solution portfolio.

-- Lucent's industry-leading IMS solution also is being used in interoperability trials - sponsored by the GSM Association (GSMA) - to ensure that end-users will be able to share video services across 3G mobile networks based on UMTS/HSDPA technology, and also exchange video with users on fixed networks. SIP is being used to establish and manage these video-sharing connections. SIP enables customers of fixed-line operators and Internet Service Providers (ISPs) to easily connect with mobile users and exchange content. Successful completion of the trials will help ensure that video sharing services work smoothly across networks and national boundaries right from launch.

Lucent Demos at 3GSM World Congress

Lucent is conducting various demonstrations at its stand (A05,located in hall eight) this week at the show, highlighting its 3Gmobile networking expertise and industry-leading IMS solution.

High-Speed Uplink Packet Access (HSUPA), the next evolution ofUMTS, is being showcased. Lucent is conducting a combined HSDPA/HSUPAdemo featuring live, high-quality video streaming. Using Lucent'scommercial Flexent(R) UMTS Macrocell, reverse link data speeds of upto 1.4 Megabits per second - four times faster than current UMTSservices - are being demonstrated. The increased reverse link dataspeeds enabled by HSUPA reduce data latency and will pave the way foroperators to deliver VoIP and other "real time" multimedia servicessuch as video conferencing on UMTS/HSDPA networks in the future.

Lucent is conducting separate demonstrations of live UMTS voiceand HSDPA data calls using its Flexent(R) family of UMTS/HSDPA basestation products developed for the 900 MHz spectrum band. DeployingUMTS/HSDPA technology in 900 MHz spectrum can help mobile operatorscost-effectively deliver UMTS/HSDPA services because the lowerfrequency provides a significant increase in the coverage area of abase station and better enables signals to penetrate buildings forin-building coverage. The Lucent equipment used for this demo iscompleting voice calls using the 5.9 kilobits per second (kbps)adaptive multirate codec (AMR coder/decoder), which can potentiallydouble voice capacity over a UMTS base station using the 12.2 kbps AMRcodec.

Lucent's Bell Labs-developed IPTV solutions and IMS applicationssuch as Active PhoneBook are also being showcased. The Lucent ActivePhoneBook application runs on Lucent's commercially available servicedelivery platform, which is being deployed with carriers globally,among them Telecom Italia and Telefonica Moviles Espana.

Lucent is presenting a track at the Wireless Developer Forum thatfocuses on the trends, strategies and key emerging technologiesimpacting the applications market. It will illustrate how Lucent'sMarket Advantage Program (MAP) for Application Partners can helpapplication developers create, test and deliver new IMS-enabledapplications to service providers by leveraging Lucent's Bell Labsapplication design and usability expertise, business modeling andgo-to-market support, and world-class lab testing facilities. Thepresentation will take place on Thursday, Feb. 16 at 10:00 a.m. -13:15 p.m. in the Wireless Developer Forum seminar rooms located abovehall two.

About Lucent Technologies

Lucent Technologies designs and delivers the systems, services andsoftware that drive next-generation communications networks. Backed byBell Labs research and development, Lucent uses its strengths inmobility, optical, software, data and voice networking technologies,as well as services, to create new revenue-generating opportunitiesfor its customers, while enabling them to quickly deploy and bettermanage their networks. Lucent's customer base includes communicationsservice providers, governments and enterprises worldwide. For moreinformation on Lucent Technologies, which has headquarters in MurrayHill, N.J., USA, visit http://www.lucent.com.