O2 Germany Selects Lucent Technologies And Novatel Wireless To Supply 3G UMTS PC Cards To Support Mobile High-Speed Data Services

CeBIT 2004, 18 - 24 March
Hall 27, B38

HANNOVER, Germany - Lucent Technologies (NYSE: LU), Novatel Wireless, Inc. (Nasdaq: NVTL) today announced an agreement with O2 Germany to supply third-generation (3G) Merlin U530 Universal Mobile Telecommunications System (UMTS) PC card modems -- jointly developed by Lucent and Novatel Wireless -- to support O2's commercial 3G service rollout in Germany. The Merlin U530 Wireless PC Modem Cards will enable O2 to offer businesses and consumer customers services such as streaming video and audio, secure mobile access to corporate networks including e-mail with large attachments -- and other information stored behind corporate firewalls -- at speeds of up to 384 kilobits per second.

Lucent also will collaborate with O2 on an "enterprise support programme," which will include joint sales and marketing activities designed to support O2's commercial 3G UMTS service launch. This includes a joint demonstration of mobile high-speed data with the Merlin U530 cards at CeBIT 2004. Lucent and O2 will be jointly discussing the benefits of the enterprise support programme with enterprises and network operators on Lucent's stand, Hall 27, Stand B 38.

"By using the Merlin U530 UMTS data cards to deliver high-speed data services, we will be able to ensure that we fulfill the mobile office needs of our business customers right from the start," said Norbert Hölzle, senior vice president, Marketing & Sales Business at O2. "We will also benefit from Lucent's experience to define and customize 3G UMTS services to meet business needs."

Lucent has sponsored a series of in-depth market studies that revealed substantial demand for 3G mobile data access among businesses.

"This agreement demonstrates our continued partnership with O2 as the operator rolls out high speed data services in Germany," said David Poticny, president Lucent Europe. "The announcement demonstrates our belief that high-speed data services over 3G UMTS networks mean time savings and increased efficiency for mobile enterprise customers. We are pleased to support O2 as they introduce commercial 3G UMTS services, and look forward to collaborating to develop sales and marketing activities."

"We are glad to build on our relationship with O2 and appreciate this opportunity to demonstrate the advantages that 3G UMTS has to offer businesses and enterprise customers," said Peter Leparulo, CEO of Novatel Wireless. "This collaboration with Lucent and O2 demonstrates the momentum growing behind our mobile high-speed data solutions, and the progress being made in bringing commercial 3G UMTS services to European customers."

Lucent will be demonstrating 3G UMTS services using Merlin U530 cards and Lucent's end-to-end UMTS infrastructure, using O2's UMTS spectrum. Among the high-speed data applications shown are e-mail, access to the Lucent intranet through a VPN (Virtual Private Network), video-conferencing and roaming between UMTS and Wireless Local Area (WLAN) or "Wi-Fi" network. Visitors can also experience a "smart client" application, directing users to the wireless network of choice (either UMTS or WLAN) - based on a preference for either the fastest, or most cost-efficient network.

ABOUT O2 (Germany) GmbH & Co. OHG

O2 (Germany) GmbH & Co. OHG, a subsidiary of mmO2 plc, meets the complete telecommunications needs of its mobile communications customers. With its own extensive network infrastructure, O2 offers innovative post-pay and pre-pay products and also mobile data services based on GPRS technology. In addition, the company will introduce a range of next generation UMTS products. mmO2 plc has 20.1 million customers in the UK, Ireland and Germany.

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.

ABOUT NOVATEL WIRELESS, INC.

Novatel Wireless, Inc. is a provider of broadband wireless access solutions for use in mobile computing devices. Novatel Wireless Merlin PC Cards, Expedite Embedded Modems, and Freedom Box Ruggedized Modems enable high-speed wireless access to personal, corporate and public information via portable computers, handheld devices and vertical market applications. The company delivers innovative 2.5G and 3G solutions to operators, distributors and vertical markets worldwide. Headquartered in San Diego, California, Novatel Wireless is listed on Nasdaq: NVTL.

© 2004 Novatel Wireless. All rights reserved. The Novatel Wireless logo, Merlin, Merlin U530, Expedite, and Freedom Box, are trademarks of Novatel Wireless, Inc. 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, as amended to date. 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 contained herein. 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 (available at www.sec.gov) and other regulatory agencies.