Lucent Reports U.S. Carriers Have Potential Market of more than 30 Million Customers for Intelligent Phonebook and for Location-Based Services

Market of “highly interested” individuals who use the Internet and mobile phones

APRIL 05, 2006, LAS VEGAS – According to primary research by Lucent Technologies, U.S. service providers have a potential market of more than 60 million customers who have a high interest in blended lifestyle services that consolidate and help them better manage their phonebooks, contacts and buddy lists or that use location technology. The company today announced results of the research here at the Cellular Telecommunications and Internet Association (CTIA) Wireless 2006 show.

Lucent projected the potential market size by surveying a targeted sample of the population - more than 700 people - to identify those who had significant interest in the services and applying statistical modeling to survey data to estimate the number of people in the United States that makes up this market segment. The potential market consists of approximately 31 million potential customers in the United States for services enabled by the Lucent Active PhoneBook and about 33 million customers for services enabled by Lucent’s iLocator application. The “high interest” individuals make up an estimated 27 percent of the estimated total addressable U.S. market for these services.

Both applications include presence technology that helps enable real-time or instant planning by determining whether a person is available by e-mail, phone, instant message, video conferencing, etc.

The survey also found that these services can generate extensive usage or interest in other services. Some findings include: more than 35 percent of individuals with a high interest in services based on the Lucent Active PhoneBook said they would definitely feel encouraged to make video calls if they could see who else had this capability; more than 50 percent of those with a high interest in the Lucent iLocator services said they would use the services at least several times a week; about 80 percent of the overall high interest group said they would probably or definitely upgrade their handsets to take advantage of advanced features for either type of service.

“These results show us that people want ’smart’ services that better match their lifestyle,” said John Marinho, corporate strategic marketing vice president, Lucent Technologies. “Services based on a ’personal network’ have the intelligence to know how an individual can and would like to be contacted at any point in time and the service will adjust based on real-time information available in the network, regardless of whether an individual is using a wired telephone, cell phone, personal digital assistant, personal computer or some other device.”

Lucent is using the detailed results of the research in partnership with its service provider customers to help them tailor their service introductions for specific markets.

Completed last year, the research is part of Lucent’s ongoing primary market research into the demand for blended lifestyle services that involve inter-working separate voice, video, data and multimedia applications to offer personalized services specific to a person’s lifestyle.

The research consisted of an online survey of more than 700 men, women and youths in the United States ages 15-55 who have Internet access and use mobile phones. An individual was highly interested if the person rated their interest in the proposed services as eight or higher on a scale of one to ten. The majority of the highly interested users were people 15-40 years old.

Lucent’s survey results are in no way a predictor of the company’s future performance, and are meant only to identify potential market opportunities and estimates for the communications industry at large.

Lucent Active PhoneBook
Lucent’s Active PhoneBook (APB) application provides unified database management and a consistent “look and feel” across the various applications a consumer might use, such as e-mail contact lists, instant messenger buddy lists and mobile handset phone books. Using this technology, an end-user can conduct multi-party, multimedia communications sessions. For instance, this application enables consumers to simultaneously contact their buddies to plan an evening out, establish a VoIP (Voice over Internet Protocol) conference call to discuss their options, browse the Web as a group to view a movie trailer for the latest box office hit and purchase tickets.

With Lucent APB, the master copy of a consolidated address book, including buddy lists and other contact information is stored on a secure network with copies kept on the access devices (mobile phone, computer, etc.). Every time a change or addition is made on the access device, the master copy is automatically updated. This means that even if a mobile phone is lost or the computer hard drive “crashes” the address book will be safe in the network. This allows people to have a single, synchronized address book that is accessible and updateable from almost any communication device.

Lucent iLocator
Lucent’s iLocator application, developed in Bell Labs, uses location and presence technology to alert users when friends, family or points of interest are in their vicinity, and facilitate services that can take advantage of that location information. For example, consumers using iLocator can see where they are on a map of the local area, as well as get directions to the nearest gas station or restaurant. The technology also enables a user to determine where they are, even if they are lost. Business users can also benefit from this technology. For instance, an auto insurance company could locate the claims processors nearest to an accident and send them to assess the damage and initiate claims quickly.

About Lucent Technologies
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 http://www.lucent.com.

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve estimates, assumptions, known and unknown risks and uncertainties that may cause actual outcomes and results to be materially different from those anticipated and discussed herein. Important factors that might cause such differences include improper or inadequate research methodology or sampling, changing personal behaviors and preferences, technological difficulties and the risk factors detailed in Lucent Technologies’ most recent annual report on Form 10-K and other reports subsequently filed with the Securities and Exchange Commission.

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Ichiro Kawasaki

Lucent Technologies

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