CeBIT 2004, 18 - 24 March Hall 27, B38 HANNOVER, GERMANY - Lucent Technologies (NYSE: LU) and OAO Moscow City Telephone Network (MGTS), the largest Russian local exchange carrier, have announced that MGTS has selected Lucent to participate in the modernization of the Moscow public telephone network. The agreement signed by the companies is the first step in rolling out the MGTS network modernization program already announced by the operator to digitize the network, allowing the introduction of new value-added services. Lucent will supply its 5ESS® switching system that will be installed at the operator's facility in Tushino, one of the most densely populated districts in Moscow. For MGTS's SDH transport network extension, Lucent will deploy its Metropolis® ADM Multiservice Mux (Compact shelf) optical multiplexers and introduce Geographical Redundancy Functionality for Lucent's WaveStar® ITM-SC Management System already in the network. Lucent Worldwide Services will provide installation and engineering services for the deployment. The total value of the project is about $3.5M. "Our goal is to expand our capabilities in providing Moscow subscribers - both residential and business - with best in class communications services," said Alexei Goltsov, deputy general director MGTS. "Co-operation with Lucent and the company's solutions are a good fit to our plans for the appropriate network modernization". "We are happy to have MGTS as our continuing customer," said Dmitry Kamensky, managing director Lucent Technologies in Russia and CIS. "The breadth of our portfolio helps us to address our customers' needs and we are ready to meet MGTS network expansion needs." Lucent is exhibiting its industry leading solutions and services in Hall 27 / Stand B38 at CeBIT 2004 in Hannover, Germany from 18-24 March, 2004. About Lucent Technologies Lucent Technologies designs and delivers the systems, services and software that drive next-generation communications networks. Backed by Bell Labs research and development, Lucent uses its strengths in mobility, optical, software, data and voice networking technologies, as well as services, to create new revenue-generating opportunities for its customers, while enabling them to quickly deploy and better manage their networks. Lucent's customer base includes communications service providers, governments and enterprises worldwide. For more information on Lucent Technologies, which has headquarters in Murray Hill, N.J., USA, visit https://www.lucent.com. About MGTS PJSC Moscow City Telephone Network is one of the largest local exchange carriers among European telephone companies. The Company's major goal is to provide high-quality affordable communication services to its clients - Moscow residents. Twenty Thousand MGTS employees provide telephone services to more than 4.2 million subscribers. The teledensity in Moscow conforms to European standards - more than 50 telephone lines per 100 metropolitan residents are served by MGTS. About 600 switching systems are operational in MGTS's network infrastructure, and this number is increasing. The Company's payphone network has 18 000 payphones in operation. MGTS has around 80 per cent of the wireline market share in Moscow. The Company's dynamic development is distinguished by its stable economic position, on-going profitable growth and the speed of introducing new services. The Central Office of PJSC MGTS is at 12, building 3, Petrovskiy Boulevard, Moscow, Russia. The Company's web-site: https://www.mgts.ru For further details, please contact MGTS Public Relations (Tel: +7 (095) 950 0623, Fax: +7 (095) 950 0622, or e-mail: pressa@mgts.ru). For more information, reporters may contact: Elena Shugaley Lucent Technologies Russia +7 812 960 6031 - Mobile Email:eshugal@lucent.com John Verdon Lucent Technologies Europe +44 7801 762 387 - Mobile Email:verdon@lucent.com