Verizon Wireless Awards $5 Billion Contract to Lucent Technologies for Next-Generation Network Expansion

BEDMINSTER, NJ and MURRAY HILL, NJ — Verizon Wireless, the nation's leading wireless service provider, and Lucent Technologies (NYSE: LU) today announced an agreement worth at least $5 billion for Lucent to supply a wide variety of network equipment, software and services for Verizon Wireless' national next-generation voice and data network. With this agreement Lucent will continue as Verizon Wireless' primary next-generation network infrastructure supplier.

The equipment, software and services from Lucent will make it possible for Verizon Wireless to increase the coverage and capacity of its existing next-generation voice network and high-speed, wide-area BroadbandAccess data network based on CDMA2000 1xEV-DO technology. This agreement also will enable Verizon Wireless to cost-effectively evolve its network to provide next-generation voice, data and video services in the future while preserving its investments in its existing network.

"At Verizon Wireless, we're focused on our growing customer base and ensuring that they have the highest quality products and services," said Dick Lynch, executive vice president and chief technical officer for Verizon Wireless. "Lucent has long been a key supplier and has helped us provide our customers the most satisfying wireless experience possible. Going forward, we're going to count on Lucent as we roll out high-speed mobile data services nationwide and continuously improve the quality and reliability of our network."

Under the agreement, Lucent will provide infrastructure and technology spanning its entire portfolio, including Bell Labs-developed wireless, optical and data networking equipment along with network management and applications software. Among the products to be supplied are Lucent's Flexent® Modular Cell 4.0 base stations. Lucent Worldwide Services will perform network optimization, integration, planning and design and deployment services.

Verizon Wireless will also participate in the Lucent Market Advantage Program as the company continues to expand its network and offer mobile high-speed data services, such as corporate Internet and Intranet access, downloading of video and PowerPoint files and others, to its enterprise and residential customers.

"Verizon Wireless has always been a leader in delivering the most advanced, reliable and innovative services to its customers," said Cindy Christy, president, Mobility Solutions for Lucent Technologies. "Over the next few years we look forward to supporting their efforts to introduce new services such as blended voice and data services, enhancing their position as one of the world's leading wireless service providers."

This agreement includes the $525 million contract announced in March, naming Lucent as a key supplier for Verizon Wireless's BroadbandAccess high-speed data network, and it replaces the previous agreement the two companies announced in March 2001.

About Verizon Wireless
Verizon Wireless is the nation's leading provider of wireless communications. The company has the largest nationwide wireless voice and data network and 40 million customers. Headquartered in Bedminster, NJ, Verizon Wireless is a joint venture of Verizon Communications (NYSE:VZ) and Vodafone (NYSE and LSE: VOD). Find more information on the Web at www.verizonwireless.com. To receive broadcast-quality video footage of Verizon Wireless operations, log onto www.thenewsmarket.com/verizonwireless.  

About Lucent Technologies
A global leader in the development of commercial 3G spread-spectrum solutions, Lucent's Mobility Solutions Group has deployed CDMA2000, CDMA450, and W-CDMA/UMTS networks with more than 30 customers on the continents of North and South America, Asia, Europe and in the Australia/New Zealand region. Lucent has deployed more than 90,000 spread-spectrum base stations for mobile operators worldwide, of which 50,000 are already supporting 3G services.

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 www.lucent.com.  

CDMA2000 is a trademark of the Telecommunications Industry Association.

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