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

BARCELONA, Spain -- O2 Conducting Lab Trial of Lucent Base Station Router in Germany; Contracts Include Several Key Services and Mobility Wins in Europe

Lucent Demonstrating HSUPA and Various Blended Lifestyle Services with Its Industry-Leading IMS Solution

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

One of the key contracts is an agreement with the European Commission, Directorate General Information Society and Media, for Lucent and its R&D arm, Bell Labs, to provide a comprehensive analysis of the factors influencing the availability of Europe's electronic communications infrastructure, including its Internet and mobile networks. In addition, Lucent unveiled the Lucent Base Station Router (BSR), a Bell Labs innovation that integrates key components of 3G mobile networks into a single network element, thus "flattening" what is typically a more complex architecture. O2 is currently conducting laboratory trials of the Lucent BSR in Germany.

"These contracts and the introduction of the Lucent BSR underscore Lucent's expertise and knowledge in evolving and optimizing communications networks for service providers, enterprises and government customers worldwide," said Cindy Christy, president of Lucent's Network Solutions Group. "At 3GSM World Congress, we are showcasing solutions that help service providers create and deliver simple, seamless, secure, portable, and personal multimedia services to their subscribers."

Lucent also released the results of primary research that found that UK service providers have a potential market of more than 16 million customers who have a high interest in blended lifestyle services that consolidate and help them better manage their phonebooks, contacts and buddy lists, or that use location-based technology.

Summary of Announcements

Lucent's 3GSM World Congress 2006 announcements include a broad range of products and services contracts, the introduction of the Lucent 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 as our laboratory trial of the product has demonstrated its ability to help us cost-effectively deliver mobile broadband and converged data services to subscribers utilizing a ground-breaking, simplified 3G network architecture," said Charly Rohrsen, CTO for O2 Germany. "With the BSR, Bell Labs has once again delivered a breakthrough technology innovation 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 3G mobile networking expertise and industry-leading IMS solution.

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

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

Lucent's Bell Labs-developed IPTV solutions and IMS applications such as Active PhoneBook are also being showcased. The Lucent Active PhoneBook application runs on Lucent's commercially available service delivery 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 that focuses on the trends, strategies and key emerging technologies impacting the applications market. It will illustrate how Lucent's Market Advantage Program (MAP) for Application Partners can help application developers create, test and deliver new IMS-enabled applications to service providers by leveraging Lucent's Bell Labs application design and usability expertise, business modeling and go-to-market support, and world-class lab testing facilities. The presentation will take place on Thursday, Feb. 16 at 10:00 a.m. - 13:15 p.m. in the Wireless Developer Forum seminar rooms located above hall two.

About Lucent Technologies

Lucent Technologies designs and delivers the systems, services and software that drive next-generation communications networks. Backed by Bell Labs research and development, Lucent uses its strengths in mobility, optical, software, data and voice networking technologies, as well as services, to create new revenue-generating opportunities for its customers, while enabling them to quickly deploy and better manage their networks. Lucent's customer base includes communications service providers, governments and enterprises worldwide. For more information on Lucent Technologies, which has headquarters in Murray Hill, N.J., USA, visit http://www.lucent.com.