Brazil's Telesp Celular Signs Contracts for US$59 Million With Lucent Technologies to Expand CDMA Wireless Network.

SAO PAULO, Brazil--(BUSINESS WIRE)--Aug. 11, 1999--

Lucent Technologies today announced that it has signed a contract totaling US$59 million with Telesp Celular, which is owned by Portugal Telecom, to expand the company's wireless network based on code division multiple access (CDMA) in the cities of Santos and Guaruja, state of Sao Paulo.

Under the terms of this contract, Lucent Technologies is providing three Mobile Switching Centers using the 5ESS(R) switching platform, and more than 100 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.

"We are delighted that Telesp Celular continues to reward us with new business as their preferred technology provider in their network expansions," said Jose Roberto Campos, vice president of Lucent Technologies in Brazil. Lucent already has deployed CDMA systems for Telesp Celular in the cities of Bauru, Marilia and Presidente Prudente, and is currently completing CDMA overlay of existing systems and expanding the networks in the metropolitan area of Sao Paulo and other municipalities in the interior of the state.

"Serving a customer of the size of Telesp Celular, which covers the entire state of Sao Paulo, the largest cellular region in the country, requires great attention to quality, speed and customer service," added Campos. "We are proud to provide the highest quality of service to our customer and its subscribers, thus contributing to the successful expansion of Telesp Celular's business."

Lucent's 5ESS 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 -- over any network -- wireless or wireline. Its new 7R/E Packet Driver provides a smooth gateway to packet networks, allowing service providers to merge their voice and data networks as one. 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.

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 160 CDMA networks either in commercial operation or under construction for network operators worldwide. Lucent's CDMA networks manage approximately 16 million calls around the world each day.

In the Caribbean and Latin America region, Lucent Technologies is building CDMA networks in Brazil, Mexico, Argentina, 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, Bell Atlantic Mobile, Ameritech Cellular Services and US West Cellular.

Lucent Technologies supplies mobile and fixed wireless communications systems that offer global service providers standards-based solutions for serving the information needs of consumers and enterprises. The company 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 last year, 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 2.2 million subscribers.