Lucent Technologies Strengthens E-business Plans; Unveils Industry-Leading Secure VPN Product Portfolio.

Business/Technology Editors

ACTON, Mass.--(BUSINESS WIRE)--Jan. 17, 2000

World-Class Solutions Deliver Advanced Security, Performance and

Policy Management to Enterprises and Service Providers

Lucent Technologies (NYSE: LU) today announced the industry's broadest portfolio of Secure Virtual Private Network (VPN) solutions, strengthening its position in the fast-growing market for e-business applications. VPNs allow enterprises and service providers to securely and cost-effectively exchange information over a corporate intranet or the global Internet.

Lucent's Secure VPN portfolio brings together new hardware and software products being introduced today with the award-winning set of existing Customer Premises Equipment (CPE)-based VPN routers, firewall-based VPN gateways, integrated VPN clients and centralized security policy management systems from Lucent and the former Xedia and Ascend companies. With these products, enterprises and service providers can build the centrally managed, highly secure and reliable networks required by e-business.

"In the evolving e-business environment, corporations will depend upon the ability to achieve global, secure access to their customers, partners and employees," said Bill O'Shea, executive vice president and CEO of Lucent's Enterprise Networks unit. "The best-of-breed Secure VPN products offered by our newly combined team of Lucent, Ascend and Xedia - together with our NetCare(R) professional services

-- bring to the market the critical elements Lucent customers will need to establish leadership in the emerging era of the globally extended virtual enterprise."

Michael Howard, principal analyst and co-founder of Infonetics Research, a San Jose, Calif.-based strategic market research and consulting firm, stated, "Lucent's announcement today demonstrates its breadth as a VPN vendor for both enterprise customers building their own VPNs and service providers developing managed VPN services. Lucent's set of VPN products offers customers a range of performance, security and policy-based management that can enable VPN deployment acceleration in the year 2000."

Complete Portfolio of Secure IP VPN Solutions

With this broad suite of products, customers now have the ability to meet many of the distinct price, performance and security needs of their site-to-site, remote access and partner extranet applications. For example, enterprise customers implementing new e-business applications, such as Web-based commerce, will benefit from the reliability and ease of management afforded by deploying a single, fully integrated VPN router platform. This same customer can also add advanced security to either their extranet partner or currently installed corporate router sites by deploying Lucent's VPN gateway products.

By combining the Access Point(TM) product line from the former Xedia with the Pipeline(TM) and SuperPipe(TM) routers from Lucent, the Lucent VPN router portfolio meets the requirements of the smallest remote office up to the largest corporate headquarters site with a full range of price/performance leading platforms. These multi-service access routers offer world-class IP routing, VPN security, Quality of Service (QoS), firewall and policy management services for enterprises building their own VPNs or network service providers building managed premises-based VPN services.

Lucent's VPN gateway solution includes a fully integrated suite of VPN gateway, IPSec client and policy management products that are ideally suited for large-scale remote access environments or for customers who require a dedicated VPN security device. The VPN Gateway 201 is a purpose-built firewall and VPN gateway platform that offers an embedded ICSA and NSA certified firewall, robust IPSec tunneling and encryption support plus strong user authentication and access controls. With its integrated hardware encryption accelerator, it offers performance and scale ideally suited for corporate headquarters and regional offices.

Lucent's industry leading policy management capabilities are based on the combination of the Lucent Security Management Server and the QVPN Builder, which together bring best-of-breed security policy definition and management to remote access and site-to-site VPN deployments.

New Products Announced Today

Lucent has significantly enhanced its Secure VPN product portfolio with the new products and features announced today, including:

-    A new Pipeline and SuperPipe VPN software release enhancing scale
     and manageability for large-scale remote branch VPNs. The new
     release supports fully dynamic Internet Key Exchange (IKE), X.509
     based Public Key Infrastructure (PKI) support and enhanced user
     authentication options.

-    A new release of the Lucent Security Management Server (LSMS
     V5.0) extending its policy management capabilities to now include
     the Pipeline and SuperPipe products with the currently managed
     VPN Gateway, Lucent Managed Firewall and IPSec client products.
     With this release, Lucent offers a complete, managed solution for
     remote mobile user and branch office VPNs.

-    The Lucent VPN Gateway 80, the new low-end member of the Lucent
     VPN Gateway product line. The VPN Gateway 80 complements the
     currently shipping VPN Gateway 201, allowing users to now
     cost-effectively extend the rich security and ease of deployment
     features of the VPN Gateway 201 to small and remote branch
     offices.

-    Significant enhancements to Lucent's existing IPSec client,
     adding additional advanced security and ease of deployment
     features, such as single point-and-click user installation with
     central LSMS definition and distribution of security profiles.
     The new client software (Version 3.0) also includes a personal
     edition firewall, which is critical for telecommuters requiring
     secure access to a VPN via a shared network media such as cable
     or DSL.

Lucent also announced that it will integrate the LSMS policy management platform, which is ideally suited for centrally managing large scale remote access VPNs, with the Access Point QVPN Builder, which enables low-cost deployment of large scale site-to-site VPNs. By combining these platforms under a single management umbrella, network operators will see a common policy-enabled platform that allows centralized, secure provisioning of the distributed client, VPN gateway and VPN router elements of the network.

The Secure VPN Portfolio is part of Lucent's VPNWorX(TM), one of the most comprehensive solutions for VPNs. VPNWorX features a unique provider/subscriber architecture that extends Lucent's wealth of public network service provider experience directly into the enterprise. VPNs that utilize VPNWorX products and services deliver business-class capabilities and superior price-performance.

Pricing and Availability

The VPN products shipping today include a full line of Access Point, SuperPipe and Pipeline routers, the VPN Gateway 201, LSMS policy management software and an IPSec client. The new Pipeline and SuperPipe router software announced today will be available at no additional charge. The new VPN Gateway 80 is expected to be priced at under $5,000. All new products will be available in Q2 calendar year 2000.

About Lucent

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 microelectronics components. Bell Labs is the research and development arm for the company. Additional information about Lucent Technologies is available on the company's Web site at www.lucent.com.

Access Point, Pipeline, SuperPipe and VPNWorX are trademarks and NetCare is a registered trademark of Lucent Technologies.