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

To: Don Dorsey who wrote (47)	5/4/1998 10:35:00 AM
From: Don Dorsey	Read Replies (1) \| Respond to of 82

CD Radio and Lucent Technologies Form Chip Pact PR Newswire - May 04, 1998 09:23 ALLENTOWN, Pa., May 4 /PRNewswire/ -- Lucent Technologies (NYSE: LU) and CD Radio Inc. (Nasdaq: CDRD) announced today that Lucent will develop and supply communications chips to CD Radio, whose nationwide U.S. satellite-to-car radio broadcasting system is scheduled for launch next year. New York-based CD Radio said it will use digital signal processor (DSP) and radio-frequency chips from Lucent Technologies Microelectronics Group for CD Radio's 50 channel, $9.95-per-month satellite radio broadcast service scheduled for roll-out in the 48 contiguous states beginning on December 1, 1999. Lucent's DSPs will be used in a card that consumers can easily insert into the cassette slot in their car radio, enabling existing radios to receive CD Radio's broadcasts. Lucent's RF chips will be used in a two-inch wireless antenna that will be mounted on motorists' rear windows. This agreement marks the first move by Lucent's Microelectronics Group -- already a world leader in several communications chip markets including wireless -- into digital satellite radio, another rapidly growing communications chip market. "Digital satellite radio represents a significant market opportunity for Lucent's Microelectronics Group and leverages our wealth of experience in communications chips," said John Dickson, president of Lucent's Microelectronics Group. "We chose Lucent because they are the world's pre-eminent communications technology company," said David Margolese, CD Radio's chairman and chief executive. "There is simply no name that is more respected than Bell Labs." Last year, CD Radio was granted one of two FCC national satellite radio broadcast licenses. The company is building a satellite-to-car 50 channel radio system for the broadcast of music and other programming to motorists throughout the United States. The majority of CD Radio's planned programming formats are generally unavailable on conventional radio. Furthermore, unlike conventional stations, which have an average range of approximately 30 miles before reception fades, CD Radio's signal is designed to cover the continental United States coast to coast. Music channels will be commercial-free. By contrast, conventional radio stations interrupt their broadcasts with up to 18 minutes of commercials in every hour of music programming. More information about CD Radio is available from the web site (http://www.cdradio.com). 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'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 (http://www.lucent.com/micro). 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 (http://www.lucent.com). SOURCE Lucent Technologies /NOTE TO EDITORS: Graphics available upon request. Please contact Charlie Hartley of Lucent Technologies./ /CONTACT: Charlie Hartley of Lucent Technologies, 908-508-8226 or cjhartley@lucent.com; or Madeline Couton of CD Radio, 212-899-5000/