Lucent Technologies Expands Data Network for Egynet's Business Customers; Companies signs memorandum of understanding to continue network build-out

Business Wire, May 18, 2000

Business & Technology Editors

NOTE TO ALL EDITORS: These Announcements Were Made Today At an

Event Lucent Technologies is Holding for the Media in Spain

CAIRO, Egypt--(BUSINESS WIRE)--May 18, 2000

Lucent Technologies (NYSE: LU) announced that it signed a US$51 million contract with the Egyptian Company for Networks (EgyNet) to expand its national asynchronous transfer mode (ATM) backbone data services network.

Scheduled for completion in 2000, the network will provide Internet access and video broadcast capability for EgyNet's business customers.

In addition, the companies signed a memorandum of understanding for Lucent to further expand EgyNet's network over four years. In that phase, Lucent will provide and install backbone enhancements based on ATM, optical fibre cable, XDSL technology, and broadband wireless access.

EgyNet estimates the total value of its network expansion plans at approximately US$600 million.

Last year, Lucent provided data networking systems to EgyNet in its "phase one" build-out. The current expansion project will provide EgyNet's national data network with high capacity multiservice switches supporting ATM and frame relay, DSL access concentrators and router/bridges. In the future, EgyNet plans to introduce new services - such as video on demand, and e-commerce - to its business customers.

"The timing for this collaboration is ideal as it will allow EgyNet to take advantage of the booming Egyptian communications market," said Eric van Amerongen, president of Lucent's Europe, Middle East and Africa region. "We look forward to working with EgyNet as it continues to build a sophisticated data network for its business customers."

EgyNet was granted a license in July, 1999, by the government of Egypt to build, operate and manage a national data network for financial institutions in Egypt.

Under the terms of the contract, Lucent will supply EgyNet with its market-leading CBX 500(TM) Multiservice wide area network (WAN) switches, Stinger(TM) DSL access concentrators and CellPipe(TM) router/bridges. During phase one, EgyNet installed in its network Lucent's solution for Virtual Private Networking, VPNWorX(TM), and B-STDX 9000(TM) Multiservice wide area network (WAN) switches.

Lucent Technologies, headquartered in Murray Hill, N.J., USA, designs and delivers the systems, software, silicon and services for next-generation communications networks for service providers and enterprises. Backed by the research and development of Bell Labs, Lucent focuses on high-growth areas such as optical and wireless networks; Internet infrastructure; communications software; communications semiconductors and optoelectronics; Web-based enterprise solutions that link private and public networks; and professional network design and consulting services. For more information on Lucent Technologies, visit its Web site at http://www.lucent.com.