CAMBRIDGE, MA., October 18, 1999 - Lucent Technologies' (NYSE: LU) Kenan Systems today announced the availability of its Arbor®/Energy solution for billing, customer care, order management and customer analysis for utilities and energy service providers worldwide. Kenan Systems also announced an industry alliance program, managed by its new Energy and Utilities Business Unit, which provides the industry focus and expertise required by utilities and energy service providers.

Kenan Systems' Arbor/Energy solution combines multi-service capabilities and a scalable, product-centric architecture to Deliver strategic flexibility, rapid time to Market and increasing value over time. The Arbor/Energy Solution is designed as a multi-service solution to Handle gas, electric, water, value-added services, and optionally voice and data communications.

The Arbor/Energy solution is comprised of Arbor®/BP, an award-winning, multi-service billing and customer care product; Arbor®/OM, an integrated order management and workflow product; and Strategist®, an integrated decision-support and analysis application that enables competitive advantage through enhanced customer knowledge.

Arbor/Energy also includes iCARE™, Kenan Systems' web-based customer self-care and electronic bill presentment and payment interface for end users with Internet access. iCARE is deployed and in use by several large Kenan Systems clients. These products, enhanced with utility-specific functionality, standard energy service provider and utility configurations, and complementary integrations, combine to form the innovative Arbor/Energy solution.

"The energy and utilities market is an industry that Kenan Systems has been exploring for three years," commented Kenan Sahin, president, Kenan Systems and vice president software technologies - Bell Labs. "Arbor/Energy, based on Kenan's leading customer care and billing technology, is designed to meet the unique and complex needs of this market, characterized by change and uncertainty. Kenan Systems can now help energy service providers enhance their customer focus, bill for multiple services and profit from the convergence opportunities in today's increasingly competitive industry."

The utilities and energy services market represents a strategic growth area for Kenan Systems, building upon the company's successful heritage of providing multi-service, multi-industry billing and customer care solutions.

Kenan Systems' Energy and Utilities Business Unit, led by Tanvir Hussain, is focused on providing industry-specific product development, business development, marketing and implementation to assist utilities and energy service providers as they prepare their enterprise IT infrastructures for the future. Kenan Systems' Energy and Utility Alliance Program was also launched today, with an initial marketing alliance announced with MDSIÔ Mobile Data Solutions Inc. The agreement provides for a non-exclusive joint marketing, co-selling, and low-risk integration between Arbor/Energy and the industry-leading MDSI solution for energy and utility customers. MDSI's Advantex-Utility delivers advanced workforce management and mobility management. As part of this open alliance program, Kenan Systems plans to forge alliances with other leading energy and utility technology vendors and service providers to effectively meet market needs.

About Kenan Systems:
Kenan Systems, a wholly owned subsidiary of Lucent Technologies, is an award-winning provider of software products and services that answer the specific billing, customer care, order management, decision-support and usage mediation requirements of leading service providers in the communications and utility industries world-wide, including gas, electric, water, mobile and wireline voice and data services, broadband, Internet, and value-added services. Kenan Systems is headquartered in Cambridge, Mass. with offices throughout the Americas, Europe and Asia-Pacific. Its more than 110 customers include @Home Network, AT&T, BellSouth International, British Telecom, Casema, Cegetel, France Telecom, GTE, Interpath, Level 3, MCI WorldCom, Optus, PageNet, and Videotron. Additional information on Kenan Systems' business alliances, products and services may be obtained by visiting www.kenan.com.

Lucent Technologies:
Lucent Technologies, headquartered in Murray Hill, NJ, designs, builds and delivers a wide range of public and private networks, communications systems and software, data networking systems, business telephone systems and microelectronics components. Bell Labs is the research and development arm for the company. Additional information about Lucent Technologies is available on the company's Web site at www.lucent.com.

Arbor, Strategist, iCARE, the Kenan logo, and the Lucent logo are registered trademarks or trademarks of Kenan Systems Corporation or Lucent Technologies in the United States and other countries. All other product and brand names are the service marks, trademarks, registered trademarks, or registered service marks of their respective owners.

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