Lucent, Level 3 Partner to Make "Softswitch" Voice

Technology The Foundation of Next Generation Broadband Networks Broomfield, Colo. and Murray Hill, N.J. (PROTEXT) - IndustryLeaders Sign Agreement with $1 Billion Potential To Deploy LucentSoftware Switches in Level 3 IP Network. Level 3 Communications, Inc. (Nasdaq: LVLT), today announced aminimum four year, $250 million strategic agreement with LucentTechnologies (NYSE: LU) to purchase Lucent systems, includingbreakthrough software switches or "softswitches." The agreementhas the potential to grow to $1 billion over five years, thecompanies said. Under the agreement, Lucent will provide Level 3 its LucentTechnologies Softswitch, a Bell Labs-developed software switchfor IP networks that combines the reliability and features thatcustomers expect from the public telephone network with the costeffectiveness and flexibility of IP technology. With the LucentSoftswitch, Level 3 will provide a full range of IP-basedcommunications services indistinguishable in quality and ease ofuse from services on traditional circuit voice networks. In addition, the companies also agreed to collaborate onfuture enhancements of softswitches and gateway products tosupport next-generation broadband services for business andconsumers that will combine high-quality voice and videocommunications with Internet-style Web data services. "The Lucent Softswitch, together with Level 3's IP Network,will bring customers the best of both the traditional telephonenetwork and the Internet -- ubiquity and reliability combinedwith rapid cost reductions and innovative new services," saidJames Q. Crowe, president and chief executive officer of Level 3."Customers will be able to get the same quality of service, butat lower cost, and they can further benefit from the continuouslyimproving price-performance of Internet technology." "The Lucent Softswitch will deliver high-quality voice overthe Level 3 IP network. It will let us provide the kind ofservices our customers want from circuit-switched networks, andit lays a foundation on which our entrepreneurial partners willbuild a new generation of innovative broadband services," Crowesaid. "With Level 3's IP Network and Lucent's Softswitch, Level 3'sIP Voice service will sound and act just like traditionaltelephone voice service," said Rich McGinn, chairman and chiefexecutive officer of Lucent Technologies. "People will use it bypicking up a phone -- any phone -- and dialing a telephonenumber, just like today. In essence, this network will deliverthe much talked about promise of convergence based on IPtechnology. Together, we're going to usher in a new era of IP-based telephony services for Level 3 customers," McGinn added. Level 3's Voice Service Level 3's IP Voice Service will not be the kind of voiceservice that is currently offered over Internet networks. All ofthose services require the customer to dial long strings ofnumbers, require extended call setup times, or require thecustomer to purchase special equipment and software -- and oftenresult in a call that is of low quality. Level 3's IP VoiceService will offer customers voice quality comparable totraditional telephone networks, but with the cost advantages ofIP. Level 3's IP Voice will be a service that can be used simplyby picking up your existing phone and dialing just as you wouldwith any other call. The key is to connect the signaling anddatabase systems that operate the public telephone network toLevel 3's IP network, using Lucent's Softswitch technology. Level 3's network will translate circuit-based messages fromits business customers to IP for cost-efficient transport andthen, if required, convert them back to circuit-based messagesfor delivery over the public telephone network. Initially, Level3 will offer long distance IP Voice service. When Level 3 offersits local IP Voice service, the softswitch will enable Level 3 tooffer its customers Advanced Intelligent Network services -- suchas call waiting, call forwarding, billing and operator assistance-- over either traditional or IP networks. A key feature of the softswitch is its ability to providetraditional telephone system quality and reliability at alltimes. If reliability on the IP network drops below the qualityof the traditional network, the traffic is simply switched overto the traditional network. Programming interfaces that will be supplied with the LucentSoftswitch will enable Level 3 and independent software vendorsto quickly create new IP-based services that operate across bothtraditional and IP networks. Also under the agreement, Level 3 can purchase Lucent's 7R/EPacket Gateway, which converts voice signals into packets forLevel 3's IP-based long distance network. Additionally, Level 3is also testing Lucent's IP Exchange Systems and DEFINITY IPSolutions, Lucent's recently announced IP-enabled enterprisecommunications systems. Lucent's IP Exchange Systems is a family of next-generationcommunications systems that converge voice, data and fax trafficover a company's local area network (LAN), wide area network(WAN) and the Internet. DEFINITY IP Solutions provides IPcapabilities to Lucent's flagship enterprise communicationsserver, allowing large businesses to send voice and fax trafficover their LANs, WANs and the Internet while retaining thefeatures, functionality and reliability of the DEFINITY system. Softswitch Consortium Level 3 and Lucent are founding members of the InternationalSoftswitch Consortium, a recently announced organization thatfocuses exclusively on interconnecting IP networks andtraditional telephone networks. The Consortium will promoteworldwide compatibility and interoperability, plus be a catalystin stimulating independent software vendors to develop value-added services for service providers and network users. About Level 3 Communications Level 3 Communications, Inc., is a communications andinformation services company that is building the firstinternational network optimized for Internet Protocol technology.The Level 3 network combines local, long distance, and underseanetworks, connecting customers end-to-end across the U.S. and inEurope and Asia. The company expects to complete its plannednetwork construction in phases beginning in the first quarter of2000. In the interim, Level 3 is offering service in the U.S. andEurope using a combination of company owned facilities and leasednetwork connections. Level 3's common stock is traded on TheNasdaq National Market (U.S.) under the symbol LVLT. Its WorldWide Web address is (http://www.Level3.com). About Lucent Technologies Lucent Technologies, headquartered in Murray Hill, N.J.,designs, builds and delivers a wide range of public and privatenetworks, communications systems and software, data networkingsystems, business telephone systems and microelectronicscomponents. Bell Laboratories is the research and development armfor the company. For more information on Lucent Technologies,visit the company's web site at http://www.lucent.com. News Media Conference Call Scheduled A news media conference call concerning this announcement isscheduled for today, June 23, at 1:00 P.M. Eastern Time. JimCrowe, Level 3 president and CEO, and Rich McGinn, Lucentchairman and CEO, will be participating on the call. To access the call, please dial 800-288-9626 for the U.S., and612-332-1214 for international participants. No access code isrequired. A replay of the news media conference call will be available.To access the replay number please dial 800-475-6701 or 320-365-3844 for international callers. The access code is "457085."

Financial Analyst Conference Call Scheduled

A conference call for financial analysts concerning thisannouncement is scheduled for today, June 23 at 2:00 P.M. EasternTime. Jim Crowe, Level 3 president and CEO, and Rich McGinn,Lucent chairman and CEO, will be participating on the call. To access the call, please dial 800-553-0288 for the U.S., and(USA) 612-332-1210 for international participants. No access codeis needed. A replay of the analyst conference call will be available. Toaccess the replay number dial 800-475-6701 or 320-365-3844 forinternational callers. The access code is "457086." Forward Looking Statement The statements made by Level 3 and Lucent in this pressrelease may be forward looking in nature. Actual results maydiffer materially from those projected in forward lookingstatements. Level 3 believes that its primary risk factorsinclude, but are not limited to: substantial capitalrequirements; development of effective internal processes andsystems; the ability to attract and retain high qualityemployees; changes in the overall economy; technology; the numberand size of competitors in its markets; law and regulatorypolicy; and the mix of products and services offered in itstarget markets. Additional information concerning these and otherpotential important factors can be found within Level 3's filingswith the U.S. Securities and Exchange Commission. Statements inthis release should be evaluated in light of these importantfactors. ots Original Text Service: Level 3 Communications, Inc.Internet: http://www.newsaktuell.de Contact: Media: JoshHowell, (USA) 303-926-3197, josh.howell@Level3.com, orInvestors: Ron Vidal, (USA) 303-926-3575,investor.relations@Level3.com, both of Level 3 Communications,Inc.; or Media: Dick Muldoon of Lucent Technologies, (USA) 908-953-7526, rpmuldoon@lucent.com Web site: http://www.lucent.comWeb site: http://www.level3.com

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