Lucent Digital Video Introduces StatMax-tm- Statistical Multiplexer for New Lucent VideoStar-tm- Line of MPEG-2 Products.

MURRAY HILL, N.J.--(BUSINESS WIRE)--April 8, 1999--Lucent Digital Video, a wholly-owned subsidiary of Lucent Technologies (NYSE: LU), today introduced the StatMax(TM) internal statistical multiplexing feature for the new Lucent VideoStar(TM) line of MPEG-2 encoders and decoders.

StatMax is sold as an optional feature of the VideoStar encoder. It combines multiple program channels at different bit rates into a single bitstream for transmission over satellite, fiber or coaxial cable.

StatMax's internal statistical multiplexing is a software feature that does not require any additional hardware or cabling, which implies system provisioning and operations. Bit rate allocations can be quickly modified on a per-channel basis.

StatMax uses a "look ahead" function in each encoder to sample and monitor the incoming video signal. Depending upon the relative complexity of the signals, the VideoStar StatMax software reassigns available system bandwidth from video sources with low complexity to those with higher complexity. StatMax performs its statistical multiplexing in a manner fully compliant with MPEG-2. Standard decoders can receive and reconstruct each channel that is combined by StatMax.

"The algorithms that we have used in the VideoStar StatMax feature enable service providers to show multiple robust channels with the highest possible quality," said John Mailhot, vice president of engineering, Lucent Digital Video. "StatMax redefines statistical multiplexing for the DTV era."

Further product or sales information can be obtained from Lucent Digital Video by calling 877-497-2448 in the U.S. or, outside the United States, by calling [phone]. E-mail may be sent to [e-mail]. Visit the Lucent Digital Video Web site at www.lucent.com/ldv.

Lucent Digital Video conducted the first formal interoperability tests between an ATSC encoder and various HDTV receivers in 1998. In November, 1998, Lucent Digital Video conducted the first on-air HDTV closed-captioning demonstrations with WCVB-TV Boston and ULTECH.

Lucent won a Primetime Engineering Emmy Award in 1997 for its pioneering work in DTV as a member of the HDTV Grand Alliance. The company, which contributed to the original MPEG-2 specification, also built the world's first MPEG-2 and digital HDTV encoders.

Lucent Digital Video is one of several new entrepreneurial business ventures formed by Lucent to help bring Bell Labs technologies to market. Leveraging decades of Bell Labs research and development, the group was formed to manufacture and market digital video products, including encoders. Lucent Digital Video markets its product line for cable, wireless cable, fiber optic and satellite back-hauling, DBS (Direct Broadcast Satellite) and other applications worldwide.

In January, 1998, Lucent Digital Video announced a strategic alliance with Harris Corp. to market DTV equipment for the North American broadcast market. In September, 1998, LDV announced a strategic alliance with EMC Corp. for broadcast video server applications. For more information on Lucent Digital Video, visit the Web site at www.lucent.com/ldv.

Lucent Technologies, headquartered in Murray Hill, N.J., designs, builds and delivers a wide range of public and private networks, communications systems and software, data networking systems, business telephone systems and microelectronic components. Bell Labs is the research and development arm for the company. For more information, visit our Web site at www.lucent.com.