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Technology Stocks : LU: Long-term Prospects -- Ignore unavailable to you. Want to Upgrade?

To: RavBruce who wrote (22)	4/20/1998 2:50:00 PM
From: Don Dorsey	Read Replies (2) \| Respond to of 82

Lucent Technologies Acquires Optimay GmbH, German Cellular Phone Software Developer Acquisition Provides Cellular Phone Manufacturers with One-Stop Shopping For GSM Technology MURRAY HILL, N.J., April 20 /PRNewswire/ -- Lucent Technologies today announced that it has acquired privately held, Munich, Germany-based Optimay GmbH for approximately $65 million. Optimay specializes in the development of software products and services for Global System for Mobile Communications (GSM) cellular phones -- a market that is expected to grow from 65 million subscribers to 300 million by 2002(A). Optimay will become a subsidiary of Lucent. Lucent said the acquisition is consistent with its Microelectronics Group's strategy to expand its position as a leading supplier of chip sets for GSM cellular phones. These chip sets incorporate Lucent's state-of-the-art digital signal processor (DSP) technology. Optimay's software technology controls the cellular phone's call processing and user interface functions. By bundling Lucent's GSM chips with Optimay's associated software technology, Lucent will provide cellular phone manufacturers with one-stop shopping for GSM technology. ''Until now, cellular phone manufacturers often had to deal with several different companies for silicon and software. Now they have a single contact -- Lucent,'' said John Dickson, president of Lucent's Microelectronics Group. ''Just as it is helpful to buy bundled software with your PC to avoid compatibility and integration problems, so it is also advantageous for a cellular phone manufacturer to buy the telephone's silicon and software from one company.'' ''Optimay's software allows cellular telephone manufacturers to put their resources into making their products stand apart from competitors', rather than writing code for the basic functions of the phone,'' said Sam Goodner, president and CEO of Optimay. ''For GSM to continue on its current growth trajectory, many manufacturers will need access to technology, without having to invest massive amounts of time and money. This alliance makes that technology available to a wide range of companies, both large and small.'' The purchase is expected to result in a one-time, non-cash charge against earnings. The charge involves an accounting writeoff assigned to in-process research and development and will be taken in the third fiscal quarter of 1998. Optimay has been supplying the GSM industry with software since 1990. The company has client relationships with GSM silicon manufacturers and mobile phone manufacturers in Europe, North America, and Asia. For two years, Lucent has been working with Optimay to integrate Optimay software with Lucent GSM chip sets and to support mobile phone customers. Optimay's GSM protocol stack offers integrated data and fax services and reduces power consumption, thereby increasing phone standby time. Optimay's advanced Man Machine Interface (MMI) tools are used for designing, developing and customizing telephone user interfaces to meet customers' demands for product differentiation. Easy-to-use MMI software offers navigation through feature selection, short message services and telephone book viewing and editing. The Optimay GSM Workbench is a development and test tool used during development of radio-frequency and baseband hardware and hardware driver routines. Information on Optimay and its products can be found on its web site at optimay.com. Optimay GmbH is now a subsidiary of Lucent Technologies International, which is itself a subsidiary of Lucent Technologies. Lucent, the company that invented the first single-chip DSP 19 years ago, ranks second worldwide in DSP sales with a 28-percent market share, according to market research firm Forward Concepts. Lucent is among the world leaders in providing DSPs for wireless, modem, and digital answering machine applications. Lucent's Microelectronics Group designs and manufacturers integrated circuits and optoelectronic components for the computer and communications industries. More information about the Microelectronics Group is available from the web site at lucent.com. Lucent Technologies, headquartered in Murray Hill, N.J., designs, builds, and delivers a wide range of public and private networks, communication 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, visit our web site at lucent.com. (A) Source, The Strategis Group SOURCE: Lucent Technologies