Telscape Selects Lucent Technologies to Supply Fiber Optic Network for Long Distance and Value Added Services in Mexico

Business Wire, March 25, 1999

HOUSTON--(BUSINESS WIRE)--March 25, 1999--Telscape International, Inc. (NASDAQ: TSCP) today announced that it has selected Lucent Technologies (NYSE: LU) for the construction of a 650 kilometer fiber optic network in Mexico. The network, which is expected to be completed by the end of 1999, will allow Telscape, through its subsidiary Telereunion, S.A. de C.V., to offer long distance, calling cards, and advanced solutions to its customers.

Upon completion, Telscape's network, through a combination of owned and leased facilities, will serve cities in the Gulf Region of Mexico and the three largest metropolitan areas (Mexico City, Guadalajara and Monterrey). The network will evolve into a national network to provide Telereunion's growing customer base in Mexico a full array of telecommunication services, including voice, video and data transmission. Lucent Technologies will implement a project that incorporates outside plant, True Wave(R) fiber optic, transmission, switching centers, advanced network services, NetCare(R) professional services, and training.

"The selection of Lucent Technologies to supply and construct the Mexican network marks a significant milestone in our evolution," said Manuel Landa, Telscape's Chairman. "The Gulf region is strategically attractive to us due to a substantial concentration of underserved corporate and retail customers, lack of regional fiber infrastructure, and a high percentage of intraregional calling, which will result in more efficient on-net terminations."

Scott Crist, Chief Executive Officer, commented, "We plan to leverage this investment in infrastructure by swapping and leasing capacity from other carriers in Mexico, as well as utilizing satellite services from Interlink, a Telscape subsidiary, to complete a national network, and ultimately offer services to 90% of the Mexican domestic market. A significant presence in Mexico represents a vital competitive advantage in Telscape's strategy of providing value-added telecommunications services to the Hispanic and Latin American markets. The relationship with Lucent enables us to work with a single source of engineering and installation and, therefore, enhances project implementation."

"We are committed to offering top quality products and services to support Telscape's expansion plans. Telscape will receive our leading technology, on-time network implementation, reliability in the service operation, and easy migration for future expansion and future enhancement," said Rogelio Velasco, managing director for Lucent Technologies de Mexico.

Telscape International, Inc. is an emerging, fully integrated telecommunications company. The Company, based in the U.S., supplies international voice, video and data services, via switched and dedicated networks, principally to and from Latin America. In addition, the Company provides a full range of systems integration and value-added telecommunications services in Mexico to major public and private sector customers. Telereunion, a Telscape subsidiary, is one of only thirteen companies that has been granted a facilities-based long distance concession by the Mexican government.

Lucent Technologies 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 Laboratories is the research and development arm for the company. In Mexico, Lucent has approximately 4,000 employees and one manufacturing location. For more information on Lucent Technologies, headquartered at Murray Hill, N.J., visit its website at http://www.lucent.com. -0- Note: Certain statements made herein that are not historical are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, risks related to market acceptance of and demand for the Company's products and services by customers, continued relationships with and pricing dependence for third party suppliers, and continuity of existing government regulations and policies. Statements with respect to acquisitions and continued trends are forward-looking and involve risks and uncertainties. Furthermore, the Company has significant operations in Mexico, subjecting the Company to certain political and commercial risk.