Beijing - Jiangsu Telecom today announced the launch of its next-generation intelligent optical transmission network, which was built by Lucent Technologies. This new network, which employ's Lucent's LambdaUnite® Multi-Service Switch (MSS), marks the first deployment of Automatic Switched Optical Network (ASON) technology in China and supports voice and data traffic in Jiangsu Province.

ASON is an advanced optical technology that, in effect, makes a network more flexible and "intelligent" than a traditional optical network. A distributed control plane in the ASON provides the optical network with the faster setup and release of connections and it can more quickly detect a problem and restore itself in the event of a failure. This helps carriers like Jiangsu Telecom reduce capital and operations expenditures and increase revenues, while at the same time offering even more reliable service.

Lucent is incorporating this technology in its LambdaUnite® MSS, enabling Jiangsu Telecom to quickly "turn up" its network as new network elements are added. It gives Jiangsu Telecom the ability to offer differentiated services with different levels of network performance and protection for improved operational efficiency and flexible choice of end-user services.

"Lucent offers a next-generation optical networking solution that focuses on intelligence and multi-service capabilities, while delivering the maximum investment protection in existing infrastructure. By partnering with Lucent, we are able to keep one step ahead in the migration towards next-generation networks," said Jiuming Sun, General Manager, Jiangsu Telecom.

Lucent also supplied the Navis® Optical Management System, as well as technical support from Lucent Worldwide Services (LWS) to Jiangsu Telecom. LWS provided installation and testing services, and on-site support. This network is the result of a contract announced in May, 2004.

Lucent achieved another milestone for its optical networking business in China, shipping more than 100 LambdaUnite® Multi-Service Switches since the first deployment by Sichuan Telecom, a provincial subsidiary of China Telecom in February 2002. In the past two years, the customer list in China has been extended to include all major service providers, reaffirming Lucent's leadership in the optical switch market. According to Dell'Oro Group, a leading market research firm, the LambdaUnite® MSS was the market leader in the global optical switch market with a share of 32% in the 3rd calendar quarter of 2004.

"The announcements today are major milestones for Lucent's optical networking business in China," said Louis Tong, executive vice president, Lucent Technologies China. "Lucent is committed to providing cutting-edge optical networking solutions and services to meet the needs of Chinese carriers both today and tomorrow."

Developed by Bell Labs, the LambdaUnite® MSS is a next-generation intelligent multi-service optical switch that bridges traffic between data-intensive metro networks and high-speed optical core networks, connecting cities, campuses and corporate networks to larger, long-haul public networks. It enables service providers to seamlessly upgrade their networks to support a data transmission rate up to 40Gb/s and allows them to deliver new value-added services such as Gigabit Ethernet. Leveraging and combining intelligent mesh networking with traditional protection architectures, LambdaUnite® MSS will enable carriers to expand new services such as Gigabit Ethernet, outside the major metropolitan areas without the need for an overlay network. For more information: www.lucent.com/lambdaunite.

About Jiangsu Telecom
Jiangsu Telecom Company Limited is affiliated to China Telecom Stock Company Limited, being a subsidiary established with the sole investment made by China Telecom Stock Company in the boundary of the administrative area of Jiangsu.

On July 12, 2000, in accordance with the general arrangement of the State Council concerning the telecom restructuring, the enterprise function of the original Telecommunication and Post Administration of Jiangsu Province for the business operations of the fixed-line telephone and the network service was separated, leading to the formal establishment of Jiangsu Telecom Corporation. On November 14 and 15, 2002, part of the company's assets were listed in New York, USA, and Hong Kong respectively. On December 5 , 2002, Jiangsu Telecom Company Limited was formally established with the unveiling of its signboard. The company exercises jurisdiction over 13 local-area branch companies, 56 county (or city) telecom offices, employing a total staff of 23,400 people.

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 www.lucent.com.

Lucent China has eight regional offices, two Bell Labs branches, five R&D facilities and a number of joint ventures and wholly owned enterprises. Currently, the company has approximately 4,000 employees in China and manufactures a full array of telecommunications network equipment and solutions that serve the Chinese and international markets. For more information on Lucent China, visit its web site at www.lucent.com.cn.

Karen Chen
Lucent Technologies in China
(86-10) 6528 8688 ext. 6961 (office)
(86-10) 8518 8259 (fax)
Email:kchen@lucent.com

Jenn McManus
Lucent Technologies
908-582-5703 (office)
908-582-1209 (fax)
Email:mcmanusj@lucent.com