Ascend has risen and is reborn.
Lucent Technologies completes merger with Ascend
Communications -- names new leadership team for data
networking efforts
FOR RELEASE THURSDAY JUNE 24, 1999
lucent.com
ALAMEDA, Calif. - Lucent Technologies (NYSE: LU) completed its merger with Ascend
Communications today, creating the industry's broadest, most powerful and most reliable
data networking product line. Ascend shareholders approved the merger at today's special
shareowners meeting with more than 99 percent of the votes cast in favor of the
transaction.
As a result of the merger, each outstanding share of Ascend common stock will be
converted into 1.65 shares of Lucent. The merger, valued at about $24 billion based on
yesterday's Lucent stock price, becomes one of the largest technology mergers in U.S.
history. Ascend Communications and its people now become part of Lucent's new
InterNetworking Systems unit, which is focused on delivering next-generation, broadband
networks to all classes of service providers and enterprises.
"Lucent now stands head and shoulders above the competition in its ability to deliver
end-to-end, communications networks to service providers," said Lucent Technologies
Chairman and CEO Rich McGinn. "With existing networks evolving to broadband and more
than 1,000 new service providers expected in the next two years, the powerful combination
of Lucent and Ascend positions us as the clear leader in delivering the next generation of
broadband networking."
"The merger with Ascend is one more critical step in making Lucent a leader in the new age
of communications networking," said McGinn. "We now have all the elements - ATM, IP,
optical, wireless, software and services -- to offer service providers the most sophisticated
and reliable, voice and data solutions in the world."
Lucent already leads the communications industry in several key areas: optical, wireless
and circuit switching technologies; communications semiconductors; messaging; and
networking software, services and support. With Ascend, Lucent adds critical aspects of
data networking leadership to its portfolio and becomes:
The leading provider of ATM switching for service providers
The leading provider of WAN access for carriers, including Internet service providers
The leading provider of frame relay switching for service providers
The leading provider of Voice-over IP networks to carriers, Internet service providers
and enterprises.
Huge Networking Opportunity
McGinn noted that the entire communications networking market is growing at double-digit
rates and is expected to reach $650 billion by the year 2001. More than 1,000 new service
providers are expected to join the industry in the next two years to fuel this growth.
"Lucent and Ascend have already partnered to build networks with the newest and largest
players in the communications industry such as Deutsche Telekom, Bell Atlantic, U S
WEST and KMC Communications," McGinn said. "Recent announcements with Omnitel
Italia, Viatel and WinStar Communications demonstrate clear customer support for the
merger." Already, 27 of the 30 largest global service providers use Lucent and Ascend
switching equipment in their data networks.
"This is a true case of the customer is always right," said Carly Fiorina, president of
Lucent's Global Service Provider business. "Our customers asked us to do this merger with
Ascend, and we're seeing the results.
"In the coming days and weeks, we will be sitting down with customers as one Lucent team
and showing them our combined strength in networking - including a new set of offers
based on the combined product portfolio," said Fiorina. "We're off to a running start."
The New Leadership
Lucent also announced several executive appointments today associated with the merger.
Curt Sanford, of Ascend, becomes the president of Lucent's InterNetworking Systems,
reporting to Dan Stanzione, group president, Broadband Networks Group. Sanford leads
Lucent's overall data networking efforts addressing service provider and enterprise markets.
Lucent's InterNetworking Systems division is headquartered in the Boston area.
Executives reporting to Sanford include:
Jeong Kim, president, Broadband Carrier Networks; Kim is the former chairman and
CEO of Yurie Systems, which Lucent acquired in May 1998
Menachem Abraham, president, Enterprise Systems; Abraham was president and
CEO of Prominet Systems, which Lucent acquired in January 1998
Bill Kind, president, Access Networks; Kind comes from Ascend where he helped
lead Ascend's access switching division
Mike Hendren, vice president, Worldwide Service Provider Sales; Hendren comes
from Ascend where he managed the global sales force
Mike Levy, vice president, Worldwide Enterprise Sales and Channels; Levy has been
managing Lucent's data networking sales organization
Rod Randall, vice president, Marketing; Randall, a co-founder of Teleos
Communications, comes most recently from Ascend where he managed marketing
for the Carrier Signaling and Management division.
Lucent's InterNetworking Systems -- with a total of 8,000 employees -- has large
development, marketing and sales centers in Northern and Central New Jersey; the
Boston area; Wallingford, Ct.; Alameda, Calif.; Landover, Md.; and in Israel.
Lucent's InterNetworking Systems will partner with Lucent's Optical Networking Group
and Communications Software Group to form the Broadband Networks Group, led by
Dan Stanzione. Stanzione has named Harry Bosco, chief operating officer, Optical
Networking Group, to the additional post of chief technical officer, Broadband
Networks Group. Bosco is responsible for defining new, end-to-end customer
solutions as well as overall product portfolio management and offer implementation
across the Broadband Networks Group.
In addition, Lucent has appointed Scott Thompson, who led Ascend's integration
services division, as president of Lucent's NetCare Professional Services, which
delivers Lucent's full range of professional services and customer support.
Thompson will report to Carly Fiorina.
"Broadband networks are the new field of play, and this is an incredibly exciting time
for our team," said Stanzione. "We have been given the chance to take networks to a
whole new level of service, reliability and capacity. We are leading a fundamental
change in the world's most dynamic industry, and we are now the architects and
builders of the next-generation public network."
Lucent Technologies, headquartered in Murray Hill, N.J., designs, builds and delivers
a wide range of public and private networks, communications systems and software,
data networking systems, business telephone systems and microelectronic
components. Bell Laboratories is the research and development arm for the
company. For more information on Lucent Technologies, visit its Web site at
lucent.com.
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