Lucent Technologies' New Enterprise Networks Group Announces Suite of E-business Tools for Small and Mid-sized Companies.

Business/Technology Editors

BASKING RIDGE, N.J.--(BUSINESS WIRE)--June 13, 2000

Capabilities including high-speed Internet access and

do-it-yourself Web development applications can help move companies

from bricks-and-mortar to clicks-and-mortar

Lucent Technologies' (NYSE: LU) new Enterprise Networks Group, which will be spun off later this year to form a separate company, today announced availability of MERLIN MAGIX(TM) Integrated System 1.5 upgrade, MERLIN Messaging 2.0 and the Lucent Web Communications Server. Available separately or as an integrated solution, these components offer small and mid-sized businesses a variety of big-business e-capabilities, including high-speed Internet access, a single mailbox for e-mail and voice mail, and Web site development software and services that can quickly transform bricks-and-mortar companies into clicks-and-mortar competitors.

MERLIN MAGIX Integrated System is a modular hybrid PBX system that handles up to 80 telephone lines and 200 stations. The system supports an array of feature-rich digital telephones, headsets and TransTalk(R) wireless handsets, and can be easily networked with other Lucent communications platforms.

The MERLIN MAGIX Integrated System 1.5 upgrade includes software and system cabinet hardware that allow customers of MERLIN MAGIX's predecessor system, MERLIN LEGEND, to take advantage of the MERLIN MAGIX Integrated Network Access (INA) circuit module, in addition to other enhanced call features.

The INA module uses a converged T1 line to provide high-speed Internet access while sending local and long distance calls to the Public Switched Telephone Network (PSTN). Combining the functionality of a data router, DSU/CSU (Data Service Unit/ Channel Service Unit) and a firewall, the INA module offers fast, secure data transmission, allowing businesses to realize potential cost savings through more efficient use of bandwidth, without compromising voice call quality and reliability.

"The flexibility of the MERLIN MAGIX platform is a key benefit of the system, " said Chris Vaughn, Lucent's Enterprise Networks Group product manager. "The ability to stretch the system beyond traditional telephony, often with the simple addition of a system card, is especially important for cost-conscious and space-conscious small and mid-sized businesses."

MERLIN Messaging 2.0 is installed easily by adding a circuit module with a port license PCMCIA card to the MERLIN MAGIX cabinet. The system supports up to twelve ports and 200 mailboxes, and provides advanced messaging functions such as multiple automated attendant selections, multilingual mode, priority or private message features, as well as personal and system group lists for group voice mailing.

To further streamline communications, Merlin Messaging 2.0 can be integrated with the Lucent Web Communications Server to offer users one multimedia mailbox for access to both e-mail and voice mail.

The Lucent Web Communications Server is a single-server solution for small and mid-sized companies interested in breaking into e-business. Using do-it-yourself development tools included with the server, a company can design its own Web site from scratch, including home page and product catalog layout, reducing the time and expense of creating an e-business presence.

The server utilizes Encanto Networks' InstantConnect(SM) service for shared Internet access, domain name management, e-commerce payment processing and on-line business services. This virtually "always-on" Internet service can help businesses reduce telephone costs by connecting the Web Communications Server to the Internet on demand - when a customer visits the company Web site or an employee receives an e-mail message, for example - and disconnecting the server during periods of inactivity. In addition to providing cost-effective Internet connectivity and e-mail for the entire office, the InstantConnect service offers companies a simple user interface for setting up e-payment systems, all for a monthly fee of $69.95.

The MERLIN MAGIX Integrated System, MERLIN Messaging 2.0 and the Lucent Web Communications Server are available through authorized Lucent BusinessPartners.

Standard MERLIN MAGIX Integrated System features include caller ID capability with alpha/name display; priority call queuing for call center operations; and programming and maintenance administration software. Optional software interfaces are available to help facilitate easier implementation of computer telephony integration (CTI) applications. MERLIN MAGIX also comes equipped with Basic Customer Care (BCC) solution to help businesses handle customer service more effectively.

The Manufacturer's Suggested Retail Price for the MERLIN MAGIX Integrated System module is $3,294 for a 4-line, 12-station configuration; MERLIN MAGIX Integrated Network Access circuit module is $ 4,995; MERLIN Messaging systems range from $4,780 for a 2-port system to $12,680 for a 12-port system; MERLIN MAGIX 4400-Series Digital Telephones range from $130 to $650; the Lucent Web Communications Server is $2,700. For more information, go to http://www.lucent.com/enterprise.

About Lucent Technologies' New Enterprise Networks Group

By the end of September, Lucent Technologies intends to spin off its enterprise communications systems, business cabling and LAN-based data networking businesses, including Customer Relationship Management (CRM), Integrated Messaging and Data/Voice Convergence, into a separate company focused on delivering next-generation communications networks for enterprises. The new company will be the worldwide leader in messaging, call centers and structured cabling, the U.S. leader in voice communications systems, and will have the largest sales and services force in the industry.

Lucent Technologies, headquartered in Murray Hill, N.J., USA, designs and delivers the systems, software, silicon and services for next-generation communications networks for service providers and enterprises. Backed by the research and development of Bell Labs, Lucent focuses on high-growth areas such as optical and wireless networks; Internet infrastructure; communications software; communications semiconductors and optoelectronics; Web-based enterprise solutions that link private and public networks; and professional network design and consulting services. For more information on Lucent Technologies, visit its Web site at http://www.lucent.com.