Lucent Technologies to Acquire Mobilitec, a Leading Provider of Content Delivery and Management Software for Carriers

Mobilitec technology will be integrated with Lucent applications to enable service providers to offer personalized content for mobile and broadband subscribers

SEPTEMBER 12, 2006 - MURRAY HILL, N.J. - Lucent Technologies (NYSE: LU) today said it had entered into an agreement to acquire Mobilitec, a leading provider of content management software for wireless service providers. The acquisition strengthens Lucent´s next-generation platforms that support voice, video, data and multimedia applications, enabling more services for mobile and broadband users.

Lucent will acquire Mobilitec, a privately held company in San Mateo, Calif., in a cash transaction. The transaction is subject to customary closing conditions and regulatory approvals and is expected to close by Dec. 31, 2006. Financial terms are not being disclosed at this time. The transaction is not material to Lucent.

Lucent intends to integrate the Mobilitec solution, which enhances Lucent´s IP Multimedia Subsystem (IMS) and Mobility (3G) portfolios, with Lucent´s application products to enable intelligent, personalized context-aware content delivery and targeted advertising. This will make it possible for service providers to offer special promotions on their Web storefronts that are personalized based on content, profiles, preferences, location and availability. In addition, these promotions can be targeted by device or user segment, and sent to friends through buddy lists to support viral marketing. Lucent´s integrated solution will accelerate the service provider´s ability to respond to the growing market opportunity.

According to Pyramid Research, the global market for mobile content services is expected to reach $73 billion by 2010. This market estimate includes services and applications such as ring tones, games, information, music, video and graphics but excludes messaging and remote access.

“Lucent is committed to providing our customers with solutions that help them introduce new next-generation services and capture new sources of revenue. Combining content delivery technology and �econtext aware´ capabilities - such as presence and location -- will enable service providers to produce unique offers that can appeal to new market segments and groups of users,” said Sandip Mukerjee, vice president, Lucent Technologies Applications Solutions. “Adding Mobilitec to our team will strengthen our portfolio and enable us to offer our customers a proven solution for a growing market. Mobilitec has already sold its platform to 20 customers with a base of more than 300 million subscribers.”

Mobilitec customers include Vodafone, Orange Israel and M1.

“With this agreement, we become part of an industry leader in next-generation networking. In combination with Lucent´s applications, services and global reach, Mobilitec´s software and content expertise will give customers new opportunities to create and deliver revenue-producing services to their subscribers,” said Margaret Norton, Mobilitec president and CEO. “We are delighted to be joining a company where our combined strengths bring significant increased value to the market.”

The Mobilitec mPower product provides a single platform that supports all content and media types, such as firewall and security software, ring tones, games, music and videos, enabling operators to maximize content revenues while increasing operational efficiencies.

The Mobilitec platform manages the complete content life cycle by offering software for processing submissions from a content provider, content management in catalogs, digital rights management, rendering to ensure content is formatted for the subscriber´s wireless device, a Web-style page that can serve as the carrier´s “storefront,” and a delivery mechanism.

Mobilitec´s mPower product will be marketed as part of Lucent´s applications portfolio and service delivery platform (SDP). Lucent´s SDP enables the delivery of voice, video, data and multimedia applications and blended lifestyle services over wireless and wireline networks.

Mobilitec, which will become part of Lucent´s applications business, has 70 employees worldwide, including research and development operations in Israel.

About Mobilitec
Mobilitec is a leader in software for mobile operators. Using Mobilitec content platform, operators sell integrated mobile content including ring tones, games, music and videos. Through a single platform that supports all media types, Mobilitec speeds content management, expands merchandising and ensures delivery-thus helping operators maximize content revenue while increasing operational efficiencies. Operators worldwide rely on Mobilitec to serve over 300 million subscribers. Mobilitec is a privately held company headquartered in California with sales and support offices worldwide. For more information visit http://www.Mobilitec.com.

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.

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Lucent Technologies

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