Lucent Technologies to Join Digital Television -DTV- Team.

NEW YORK--(BUSINESS WIRE)--Aug. 12, 1997--Lucent Technologies' Microelectronics Group announced today that it will join Compaq Computer, Intel Corporation and Microsoft Corporation in their efforts to accelerate the deployment of digital television (DTV) technology for personal computers (PCs) and television sets. The company made the announcement during the DTV Summit here, August 12-14.

Known as the DTV Team, the group is working with the broadcast and cable TV industries to stimulate consumer acceptance of digital television by bringing new, affordably priced digital broadcast services to market. Team members plan to develop a new generation of DTV products and services by the fall of 1998. Digital television will allow broadcasters to transmit a mix of video, audio and data to home TVs and personal computers.

"Lucent's rich history and technology in the broadband networks and digital television systems make us an ideal partner on the DTV Team," said John Dickson, vice president of Lucent's integrated circuits division. "We share the team's goals of positioning the DTV market for strong growth in the near future."

Lucent provides expertise in digital communication applications that includes encoders, receivers and other integrated circuits (ICs) that link PCs to digital networks. Lucent's Microelectronics Group is developing a DTV receiver reference design architecture that will be compatible with the DTV Team's HD0 proposal for adding new capabilities as the technology develops. It can be deployed using terrestrial (over-the-air), cable, and eventually satellite broadcast receivers.

Lucent also will participate in the development and implementation of encoders and decoders for higher resolution signals. Encoders/decoders, also referred to as CODECs, convert analog signals from the broadcast site into digital signals at the PC or TV for graphic or display processing and back again to analog.

"Lucent's component technologies and long involvement with HDTV and earlier HDTV Grand Alliance efforts round out the DTV Team on several significant fronts," said Craig Mundie, senior vice president of Microsoft's consumer platform division. "Their core competencies in the area of microelectronics will be of great value to our partners as they move forward in implementing convergence products in 1998 and 1999. Of paramount importance to the broadcasters is Lucent's CODEC and telecommunication product families."

"Lucent brings considerable expertise to the Team by virtue of their long association with -- and many contributions to -- the development of digital television, said Bob Stearns, Compaq's senior vice president, technology and corporate development. "Their technical know-how and product capabilities are in direct harmony with the rest of the group."

Lucent, through its Bell Labs, brings to the team more than 25 years of research and development in digital video technology. Last year, Lucent and Mitsubishi announced they were jointly developing high-definition television (HDTV) receiver chip sets and Motion Picture & Entertainment Group (MPEG) encoders for the broadcast market. Last month, Lucent's Microelectronics Group received an Emmy Award for its pioneering work in MPEG digital compression and other high-definition television work under the HDTV Grand Alliance.

"As a company with technology that will help bring cost- effective digital broadcasting to consumers, Lucent is a strong addition to the DTV team," said Ron Whittier, senior vice president of Intel's content group. "The DTV Team welcomes others from the TV industry to join our efforts in accelerating the deployment of flexible digital broadcasting to PCs at affordable prices."

Lucent Technologies (LU) designs, builds and delivers a wide range of public and private networks, communications systems and software, consumer and business telephone systems and microelectronic components. Bell Laboratories is the research and development arm for the company.

Lucent's Microelectronics Group designs and manufactures integrated circuits, optoelectronic components, and power systems for the computer and communications industries. Visit our web site at: http://www.lucent.com/micro.

CONTACT: Lucent Contact: Microsoft Contact:

Tom Topalian Sally Erny

908/508-8673 (office) 408/986-1140 (office)

908/713-6240 (home) 212/371-4000 (DTV Summit)

[e-mail] [e-mail]

or

Compaq Contact: Intel Contact:

Liz O'Donnell Barbara Lopez

617/536-0470 (office) 408/765-7829 (office)

212/371-4000 (DTV Summit) [e-mail]

[e-mail]