Lucent Technologies Provides Telefonica with Advanced Carrier Ethernet Platforms to Support IPTV Service Growth.

Lucent Ethernet Router 15800 Delivers Best-in-Class Video Distribution Capabilities for Telefonica's "Imagenio" IPTV Service, Currently Supporting More Than 300,000 Customers

PARIS -- Lucent Technologies (NYSE:LU) today announced the expansion of its agreement with TelefE[thorn]nica de EspaEa to supply its most advanced Carrier Ethernet platform, the Lucent Ethernet Router 15800, to support subscriber and service growth for Telefonica's "Imagenio" IPTV service - currently serving more than 300,000 customers in Spain - and to help support the introduction of its IPTV and "triple play" voice, data and video services in additional markets in the country. The platforms have also been deployed in support of Telefonica's fast-growing eBA network, which provides a wide range of business services for enterprise customers.

The Lucent Ethernet Router 15800 (recently acquired from Riverstone Networks) is designed to support very high-capacity data services in metropolitan networks, and has been deployed by TelefE[thorn]nica de EspaEa in key markets to address increasing customer demand for the operator's residential and business services, and to support anticipated increases in data traffic as Telefonica begins to launch high-definition TV services. These deployments expand on Lucent's earlier Carrier Ethernet supply agreement with Telefonica, announced in September 2004.

"The successful launch of Imagenio has placed greater demand on our network, and as a result we need to be able to cost-effectively support dramatic increases in high-bandwidth video traffic," said Vicente San Miguel, general director of Infrastructure and Information Systems, Telefonica Group. "The Carrier Ethernet routers from Lucent have proven to be an ideal platform for addressing our video delivery requirements."

Telefonica's Imagenio IPTV service is one of the world's largest commercial IPTV service offerings, providing all-digital, DVD-quality delivery of TV and audio content to subscribers in Spain. Imagenio's interactive video-on-demand service enables subscribers to watch movies, documentaries, concerts, TV shows and newscasts at any time of day, and features DVD-like controls (including play, stop, fast forward, rewind, pause, automatic language selection). Telefonica recently announced plans to expand its service to support several high-definition TV channels.

"Telefonica has been a pioneer in the introduction of commercial IPTV, and we are pleased to help them take their service to the next level," said Oscar Rodriquez, vice president and general manager, Carrier Ethernet, Lucent Technologies. "The introduction of video on such a large scale requires an entirely new way of looking at networks, and the Lucent Ethernet Router 15800 is specifically designed to meet the needs of this new video-centric world."

The Lucent Ethernet Router 15800 is designed to meet the demanding needs of carriers and service providers, providing a true carrier-grade solution featuring fully redundant hardware and software for high reliability, Multiprotocol Label Switching (MPLS)/Virtual Private LAN Service (VPLS) for resiliency, scalability and quality of service (QoS), and 10 Gigabit Ethernet support. Unlike Layer 2 carrier Ethernet switches, Lucent's MPLS-based Ethernet routing solutions, certified by the Metro Ethernet Forum, can scale to support nearly a million end-users.

About Lucent Technologies

Lucent Technologies designs and delivers the systems, services and software that drive next-generation communications networks. Supported 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 www.lucent.com.