Brazil's Telesp Celular Signs Contracts For US$340 Million With Lucent Technologies to build CDMA Wireless Networks.

SAO PAULO, Brazil--(BUSINESS WIRE)--Jan. 5, 1999--Lucent Technologies today announced that it has signed contracts totaling US$340 million with Telesp Celular, which is owned by Portugal Telecom, to build wireless networks based on code division multiple access (CDMA) in the state of Sao Paulo.

One phase of the project was completed in a record 40 days in the Osasco region, where some 150,000 customers have signed up for the digital services.

In all, the contracts call for the installation of wireless CDMA networks to support more than 1.5 million subscribers in Greater Sao Paulo and select areas in the interior of the state, the largest wireless market in Brazil. The metropolitan Sao Paulo area alone is being equipped with more than 400 cell sites, a buildout expected to be completed by June of 1999.

We are putting the weight of all our resources behind these important projects," said Virgilio Freire, president of Lucent Technologies Brazil. "Our recently inaugurated manufacturing facility will be working at full capacity, and we rely on an excellent local and region-wide network of engineers to support the installations of wireless networks around Brazil."

Under the terms of these contracts, Lucent Technologies is providing its flagship 5ESS(R) AnyMedia(TM) switching platform, and Autoplex(R) System 1000 Series II cell sites, as well as technical expertise and support services. The digital cell sites for this project will be manufactured at the Lucent manufacturing facility in Campinas, Brazil.

As part of a separate agreement, Telesp Celular also is installing two million voice messaging mailboxes in metropolitan Sao Paulo with Lucent's advanced IMA-CA (Intelligent Messaging Architecture-Caller Applications) voice messaging platform. IMA-CA offers service providers a full feature set including voice paging support, fax networking and multiple greetings.

Lucent's 5ESS(R) AnyMedia(TM) Switch is a large-scale, software-based digital switching system that delivers any media from one platform. This capability allows service providers to offer any service - local, long distance, voice, data, or video. The 5ESS Switch currently serves more than 104 million lines and 48 million trunks from four thousand host switches in more than 50 countries worldwide.

The Autoplex System 1000 Series II cell sites will be equipped with digital radios using the cdmaOne technology. This wireless technology, based on the IS-95 CDMA standard, provides increased call capacity and enhanced call quality that is comparable to landline service. CDMA reduces the static and cross-talk sometimes heard on analog systems, and provides a "soft hand-off" capability that makes call hand-offs between cell sites and mobile switching centers (MSCs) virtually unnoticeable to customers.

Lucent Technologies is a leading provider of wireless infrastructure equipment utilizing all of the major interfaces available in the market today - AMPS, TDMA, CDMA and GSM. An industry leader in CDMA technology, Lucent has more than 100 CDMA networks either in commercial operation or under construction for network operators worldwide.

In the Caribbean and Latin America region, Lucent Technologies is building CDMA networks in Mexico, Venezuela, El Salvador, Puerto Rico and the Dominican Republic. In North America, Lucent is the leading provider of CDMA infrastructure equipment for the largest PCS network providers - PrimeCo Personal Communications, Sprint PCS and others - and for cellular carriers such as GTE, AirTouch and Bell Atlantic Mobile.

Lucent Technologies designs, builds and delivers a wide range of public and private networks, communications systems and software, data networking systems, business telephone systems and microelectronics components. Bell Labs is the research and development arm of the company. Further information about Lucent Technologies is available on the worldwide web at http://www.lucent.com.

In the privatization of Telebras in July, Portugal Telecom, S.A. won the wireless region of Telesp Celular, covering the state of Sao Paulo, which is the largest cellular market in Brazil. The company currently manages a network of more than 1.7 million subscribers.