Lucent Wins HOT Contract

MURRAY HILL, N.J. -- Lucent Technologies (NYSE: LU - News) today announced a three-year, $35 million agreement with HOT Telecom, an Israeli-based cable telephony consortium formed by Golden Channels, Tevel and Matav-Cable Systems Media (Nasdaq: MATV; TASE: MATV), to provide multi-vendor network integration services for HOT Telecom's Voice over Internet Protocol (VoIP) network.

HOT Telecom, which is planning to offer VoIP services over its cable network, selected Lucent Worldwide Services to provide end-to-end network integration and security services, including network design, engineering, deployment maintenance, and the overall integration of operations support and billing systems.

"We are pleased to be working with Lucent and its partners to help us enter the cable VoIP market," said Ram Belinkov, CEO of HOT Telecom. "Lucent and Bell Labs have demonstrated extensive skills and expertise in network architecture, security, reliability and performance. This depth and expertise will be crucial for deploying and managing our network infrastructure solutions and helping us build a telephony network quickly and effectively."

"This contract with HOT Telecom demonstrates our expertise in providing multi-vendor network integration services," said John Meyer, President, Lucent Worldwide Services. "HOT Telecom is using the expertise and skills of Lucent Worldwide Services and Bell Labs to take advantage of an evolving market for VoIP services globally."

Lucent Worldwide Services is working with Lucent Alliance Partners Enterasys Networks Inc. and Sun Microsystems, Inc. and other Lucent Business Partners in the region to provide security services and infrastructure products to HOT Telecom.

"This is a complex end-to-end solution that demonstrates what Lucent can do to support our cable customers," said Dave Dial, President, Lucent Cable Solutions. "It demonstrates our ability to work in a multi-vendor environment, manage all the network elements, the operations support systems, billing systems, and link them together in an overall solution."

Lucent Technologies Inc.