Allegiance Telecom Selects Lucent Technologies in $350 Million Agreement To Extend Network for Voice and Data Services.

MURRAY HILL, N.J., May 15 /PRNewswire/ --

Lucent Technologies (NYSE: LU) and Allegiance Telecom, Inc. (Nasdaq: ALGX) today announced a three-year, $350 million global procurement agreement for a broad range of advanced telecommunications equipment, software and services. The agreement will enhance Allegiance's ability to extend voice and data services to its targeted 36 U.S. markets by the end of 2001.

Allegiance plans to expand its network through a full range of Lucent's Internet infrastructure and communications networking products. Allegiance also plans to complement its existing circuit network with a packet network through Lucent's 7R/E(TM) Packet Solutions. Lucent will provide engineering, installation and system integration services through its NetworkCare(SM) Professional Services division.

Already established as a leading integrated communications provider to small- and medium-sized businesses in 21 metropolitan areas, including Chicago, Los Angeles and New York, Allegiance plans to use Lucent's products and services to extend its reach into 15 additional markets, including Charlotte, N.C., Cleveland, Indianapolis, Miami, Phoenix, Ariz., Portland, Ore. and Tampa, Fla.

"Allegiance is committed to providing a network platform of packet and circuit switching in offering integrated communications services to businesses," said Dan Yost, president and chief operating officer of Allegiance Telecom. "Lucent offers an innovative array of products and services that complement that goal."

Bill Plunkett, senior vice president of sales for Lucent, said, "This agreement extends the excellent relationship of our companies and puts Allegiance in a superb position to enhance its network to packet technology and continue offering advanced, reliable and consistent services to small- and medium-sized businesses."

About the Lucent Solution

The Allegiance network will include a full range of Lucent's advanced data networking and communications equipment, including the AnyMedia(R) Access System, 5ESS(R) Switch, ConnectReach(TM) integrated access devices and CONNECTVU-APX switch configuration management software.

Lucent's AnyMedia Access System is a scaleable, high-density, multiservice access vehicle that provides a multitude of services from any transport medium -- copper wire, optical fiber or wireless -- to any digital switch and/or data network.

Lucent's 5ESS Switch is the foundation of today's public communications network and leads the industry in reliability, according to analysis of a Federal Communications Commission report. The 5ESS Switch is the only major switch to achieve 99.9999 percent on-time performance reliability for four straight years.

The 7R/E Packet Solutions is a portfolio of packet data networking solutions that delivers traditional telephony and data features and services in a packet environment. The 7R/E delivers the calling features -- such as call-waiting and three-way calling -- that customers expect. These features are delivered with the same voice quality as is provided over traditional circuit networks.

Lucent's ConnectReach integrated access device (IAD) will enable Allegiance to offer businesses the convenience of local and long-distance service, Internet access and data communications over a single, high-speed T1 line. ConnectReach is based on VINA Technologies' T1 Integrator.

About Allegiance Telecom, Inc.

Based in Dallas, Allegiance Telecom is a facilities-based competitive local exchange carrier (CLEC) that offers businesses a complete package of telecommunications services including local, long-distance, international calling, high-peed data transmission and Internet services. Allegiance operates in 21 markets: Atlanta, Baltimore, Boston, Chicago, Dallas, Denver, Detroit, Fort Worth, Houston, Long Island, Los Angeles, New York, Northern New Jersey, Oakland, Orange County, Philadelphia, San Diego, San Francisco, San Jose, St. Louis and Washington, D.C.

The company's web address is http://www.allegiancetele.com. Allegiance's common stock is traded on the Nasdaq National Market under the symbol ALGX.

About Lucent Technologies

Lucent Technologies, headquartered in Murray Hill, N.J., USA, designs and delivers the systems, software, silicon and services for next-generation communications networks for service providers and enterprises. Backed by the research and development of Bell Labs, Lucent focuses on high-growth areas such as optical and wireless networks; Internet infrastructure; communications software; communications semiconductors and optoelectronics; Web-based enterprise solutions that link private and public networks; and professional network design and consulting services. For more information on Lucent Technologies, visit its Web site at http://www.lucent.com.