Novatel Wireless and Lucent Technologies to Develop Wireless Modems to Support High-Speed Data Services on 3G UMTS Networks

SAN DIEGO, CALIFORNIA & MURRAY HILL, NEW JERSEY- August 14, 2002 - Novatel Wireless, Inc. (Nasdaq:NVTL), a leading provider of wireless data access solutions, and Lucent Technologies (NYSE:LU) today announced a joint development agreement to create next-generation, high-speed wireless data products designed to allow mobile users to access the internet and corporate networks over the 3G Universal Mobile Telecommunications System (UMTS) networks. Under the terms of the agreement, Novatel Wireless will develop multi-mode, multi-band UMTS/GPRS wireless PC card modems, while Lucent will contribute research, development and marketing support.

The agreement is an important step in Lucent's strategy to accelerate the introduction of third-generation (3G) high-speed data solutions for mobile operators and also underscores the company's leadership and focus on spread-spectrum technologies such as UMTS and CDMA2000.

"Lucent has done substantial market research, and we see significant pent-up demand for high-speed mobile data solutions, particularly in the enterprise market segment," said John Marinho, vice president of offer management, Lucent Mobility Solutions Group. "This agreement with Novatel Wireless is an important step in our effort to help UMTS operators introduce exciting new data services to business users worldwide."

The new wireless modem cards from Novatel Wireless complement Lucent's recently introduced portfolio of end-to-end solutions that will allow business customers to access essential applications -- such as e-mail, company databases and internal Web applications -- behind firewalls via 3G wireless networks. These solutions will enable mobile professionals to use their laptop PCs or PDAs to access their corporate networks, and all the applications they normally use, with the same level of security and usability they typically enjoy in their office.

"Our aim is to promote the rapid adoption of mobile high-speed data solutions worldwide," said John Major, chairman and CEO of Novatel Wireless. "This agreement allows us to speed up the development of next generation products while also enabling carriers throughout the world to quickly introduce advanced data services using Lucent and Novatel Wireless technology."

UMTS -- also known as Wideband CDMA (W-CDMA) -- is an advanced and efficient wireless technology being introduced worldwide, and an international 3G standard established by the International Telecommunications Union (ITU). UMTS is a spread-spectrum technology designed to support the 3G evolution needs of Global System for Mobile Communications (GSM), and other wireless network operators. UMTS is expected to play a key role in creating the mass market for high-quality wireless multimedia communications that - according to some estimates -- will exceed 2 billion users worldwide by the year 2010. This market will be worth over 1 trillion US dollars to mobile operators over the next ten years, according to the International Telecommunications Union (ITU).

ABOUT LUCENT TECHNOLOGIES

Lucent Technologies, headquartered in Murray Hill, N.J., USA, designs and delivers networks for the world's largest communications service providers. Backed by Bell Labs research and development, Lucent relies on its strengths in mobility, optical, data and voice networking technologies as well as software and services to develop next-generation networks. The company's systems, services and software are designed to help customers quickly deploy and better manage their networks and create new, revenue-generating services that help businesses and consumers. For more information on Lucent Technologies, visit its Web site at www.lucent.com.

ABOUT NOVATELWIRELESS, INC.

Novatel Wireless, Inc. is a leading provider of wireless data modems and software for use with handheld computing devices and portable personal computers. The company delivers innovative and comprehensive solutions that enable businesses and consumers to access personal, corporate and public information through email, enterprise networks and the Internet. Novatel Wireless also offers wireless data modems and custom engineering services for hardware integration projects in a wide range of vertical applications. The Novatel Wireless product portfolio includes the Minstrel^® Family of Wireless Handheld Modems, Merlin^TM Family of Wireless PC Card Modems, Sage^® Wireless Serial Modems, Lancer 3W^TM Family of Ruggedized Modems and Expedite^TM Family of Wireless Embedded Modems. Headquartered in San Diego, California, Novatel Wireless is listed on the Nasdaq Stock Market (Nasdaq: NVTL). For more information, please visit the Novatel Wireless web site: www.novatelwireless.com or call 888-888-9231.

The Novatel Wireless logo, Merlin, Merlin G200, Minstrel, Sage, Lancer 3W and Expedite are trademarks of Novatel Wireless, Inc. Minstrel and Sage are registered with the U.S. Patent and Trademark Office. All other brands, products and company names mentioned herein are trademarks of their respective holders.

This release may contain forward-looking statements, which are made pursuant to the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking statements. These factors include risks relating to technological changes, continued acceptance of Novatel Wireless' products and dependence on intellectual property rights. These factors, as well as other factors that could cause actual results to differ materially, are discussed in more detail in Novatel Wireless' filings with the United States Securities and Exchange Commission and other regulatory agencies.