Lucent Technologies to Build Advanced Optical Networks for China Unicom in Eight Provinces; Networks to Transmit a Half Million One-Page Emails Per Second

Business Wire, Sept 27, 2000

Business/Technology Editors

BEIJING--(BUSINESS WIRE)--Sept. 27, 2000

Lucent Technologies (NYSE:LU) today announced it has signed contracts worth US$14 million with China Unicom to build high-capacity optical networks in eight provinces of China.

China Unicom is the second largest telecommunications service provider in the country and serves approximately 10 million customers throughout China.

The eight provincial backbone networks are in Jilin, Hebei, Henan, Zhejiang, Hunan, Hubei, Hainan and Guangxi. They will be linked with Unicom's national backbone network.

"With the high-speed, high-capacity networks we're providing, China Unicom will be able to transmit a half million, one-page emails per second. This will enable China Unicom to offer its customers the most advanced, reliable communications networks available," said Chi Hung Lin, president of Lucent's optical networking group in China.

The optical networking equipment for the project, which is scheduled to be operational by the end of this year, will be shipped and delivered for installation and testing by the middle of October.

Under the terms of the contracts, Lucent will provide China Unicom with its WaveStar(TM) ADM 16/1. The WaveStar ADM 16/1 is an optical multiplexer that enables carriers to use Synchronous Digital Hierarchy (SDH) technology to set up optical network rings, operating at speeds up to 2.5 gigabits per second, for interoffice and access applications.

Lucent also will provide China Unicom with optical amplifiers and its ITM/SC network management software. In addition to its products, Lucent will provide a full range of professional services including installation supervision, testing, trial run, and preliminary acceptance and final acceptance procedures.

These projects mark the first entry of Lucent's optical products into Unicom's provincial backbone network markets and represent some of the largest projects Lucent has ever won at the Unicom provincial branch level. Early this year, Lucent won Phase One and Phase Two of China Unicom's national backbone project. The contract value of these two phases was approximately US$50 million.

About China Unicom

China Unicom (China United Telecommunications Corporation), founded on July 19, 1994, is the second biggest telecommunications carrier in China. It is the only carrier authorized to develop all telecom services, including PSTN, domestic and international toll, mobile communications and data transmission. On June 21, 2000, the company raised US$6.3 billion in funds through an initial public offering and became the largest publicly traded company in Asian history (outside of Japan.)

On June 5th, 2000, Lucent and China Unicom signed a Strategic Technology Partnership Agreement with China Unicom to address opportunities in the market for next-generation networking. Under the agreement, Lucent will become China Unicom's preferred vendor. The two companies will work together to develop cutting-edge next generation networking solutions in areas that include optical, network management, data, wireless, billing systems, e-commerce, order management, fiber optics and switching.

About Lucent Technologies

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 broadband and mobile 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.

Lucent Technologies (China) Co., Ltd. has seven regional offices, nine joint ventures, three wholly-owned companies, two Bell Labs branches, and seven R&D centers, with more than 3,500 employees in China. Lucent China and its joint ventures manufacture a full range of telecommunications systems to serve the China market.