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Lucent Technologies Expands Optoelectronics Components Manufacturing Operations, Quadrupling Output to Meet Market Demand

Expansion will build upon industry-leading automated processes

Allentown, PA. Lucent Technologies (NYSE: LU) Microelectronics Group today announced a $30-million expansion of its optoelectronics components operations. The expansion is expected to quadruple output this year to meet the growing market demand for components used in high-speed optical communications networks.

Optoelectronic components send light signals that carry voice and data traffic across fiber-optic networks to meet the increasing demand for next-generation services driven by the explosive growth of the Internet. According to industry analysts, the market for fiber-optic telecommunications components was $5.5 billion in 1999 and grew more than 40 percent over the previous year. Lucent s optoelectronics business grew 83 percent last year including internal sales.

"Our expansion program will dramatically boost our ability to meet the increasing demand for optical networking components," said Dan DiLeo, president of the Optoelectronics division of Lucent s Microelectronics Group. "Coupled with our industry-leading automated processes, this expansion will better position us to meet our customer s needs in a capacity-constrained market."

The expansion program includes a new 143,000 square-foot building at Lucent s 200-acre optoelectronics facility in Breinigsville, Pa. Lucent s optoelectronics facility in nearby Reading also will undergo a $6-million renovation. The expansion efforts are expected to create at least 500 new jobs in various Lucent locations this year. With the bulk of new construction completed in Breinigsville, Lucent expects to begin phasing in manufacturing operations in March.

The expansion is the latest investment Lucent has announced aimed at supporting this fast-growing business. Lucent announced plans last week to acquire Ortel Corporation - a leader in optoelectronics components for broadband cable television (CATV) networks. Lucent will also invest approximately $1 billion in optoelectronics research and development over the next three years to continue to ensure a steady stream of optoelectronics innovations. Lucent s Microelectronics Group offers the industry a broad portfolio of integrated optoelectronic components including analog and digital lasers, photodetectors, passive components, transceivers, and fiber amplifiers in the telecommunications, CATV, data communications, and undersea markets.

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. For more information on Lucent Technologies, headquartered in Murray Hill, N.J., USA, visit its web site at http://www.lucent.com.

Lucent s Microelectronics Group designs and manufactures integrated circuits and optoelectronic components for the computer and communications industries. More information about the Microelectronics Group is available from its web site at http://www.lucent.com/micro.

Contact:
Lucent Technologies
Tom Topalian 908-508-8673 (office) 908-904-4318 (home)
ttopalian@lucent.com
or
Carl Blesch 908-508-8412 (office) 908-306-0784 (home)
cblesch@lucent.com

Lucent Technologies
Tom Topalian 908-508-8673 (office) 908-904-4318 (home)
ttopalian@lucent.com or
Carl Blesch 908-508-8412 (office) 908-306-0784 (home)
cblesch@lucent.com
E-mail: cblesch@lucent.com
Web site: http://www.lucent.com/micro
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