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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: David Hansen who wrote (15234)	6/27/2000 12:59:00 PM
From: Joe S Pack	Read Replies (1) \| Respond to of 21876

AVAYA shares to LU share holders avaya.com Wall Street (Brokerage houses) may not be happy as they won't be able to reap (or rip off) 100s of millions of dollars through IPO process (initial hype, over subscription, fees). Hence, IMHO, today's news has no impact on LU shares today. -Nat This page is a work in progress. As we announce our new name, we've focused on a set of questions about our name, our business and the spin-off process we'll complete later this year. We'll be adding new information about our business in the coming days. Be sure to visit us often. ABOUT OUR NEW NAME 1. What is your new name? Our name is Avaya alone, legally Avaya Inc. But initially, to help define what we do, we'll sometimes use the word "Communication" as a descriptor under Avaya. Instead of "communications" plural-which indicates technology, systems, or networks-we chose the more distinctive "communication" singular, which emphasizes human relationships and rapport. 2. Why did you choose this name for Avaya? What was the reasoning behind this choice? As a new, made-up word, the name Avaya - pronounced "uhv-EYE-uh" -- has a certain flair to it that says we're new and different. It sets us apart and captures what we're doing as a company - becoming independent,focusing on our customers, and moving forward to define ourselves. . . . ABOUT THE SPINOFF 7. When will the spin-off be complete? The spin-off is expected to be completed by the close of the quarter ending September 30, 2000. 8. Is this the same procedure Lucent went through when it was spun off from AT&T? This is not the same process. Unlike Lucent, Avaya will not be going through an Initial Public Offering and selling shares to the public. Instead, the Avaya spin-off will be a tax-free, one-step spin-off. A one-step spin-off means that Lucent will contribute the assets of the enterprise businesses to that subsidiary in exchange for all of Avaya's stock. Lucent will then distribute shares of the common stock in Avaya to Lucent shareowners. 9. Why aren't you planning on doing an IPO with this spin? We felt that a one-step spin would be best for our shareowners. 10. What is a one-step spin? What are the benefits? A one-step spin means that we will establish a new wholly-owned subsidiary and contribute the assets of these enterprise businesses to that subsidiary in exchange for all Avaya's stock. We will then distribute shares of the common stock in Avaya to Lucent shareowners. This is generally a faster way to conduct a spin-off transaction and minimizes the costs to shareowners. 11. When will Lucent distribute stock in Avaya to Lucent shareowners? We expect the record date, or the date by which you have to own Lucent stock to be eligible to receive distributed shares of Avaya, to be in mid-September, with a distribution of Avaya stock to Lucent shareowners on September 30. 12. When will trading in Avaya stock begin? Trading in Avaya stock will begin on a "when issued" basis in mid- September. By "when issued," we mean trading as if the stock were already issued and separately trading from Lucent stock. We expect regular trading in Avaya's stock will begin on Monday, October 2. 13. Will Avaya be listed on the NY Stock Exchange? We will be listed on the NYSE stock exchange once the spin off is complete at the end of September. We'll be announcing the stock symbol at that time. 14. How many shares of Avaya will shareowners get for each share of Lucent they own? The actual ratio for the number of unrestricted shares each shareowner receives will be determined about 30 days before the actual spinoff.