Lucent Technologies agrees to sell Power Systems business to Tyco.

M2 PRESSWIRE-14 November 2000-Lucent Technologies: Lucent Technologies agrees to sell Power Systems business to Tyco (C)1994-2000 M2 COMMUNICATIONS LTD

RDATE:13112000

MURRAY HILL, N.J. -- Lucent Technologies (NYSE: LU) said today that it has agreed to sell its Power Systems business to Tyco International Ltd. (NYSE: TYC; LSE: TYI; BSX: TYC), a diversified manufacturing and service company, for $2.5 billion in cash.

The sale, which is subject to regulatory approval and other customary closing conditions, is expected to close by Dec. 31, 2000 and result in a one-time gain to be recorded as an extraordinary item, net of tax, on Lucent's income statement.

"As Lucent focuses on the broadband and mobile Internet markets, we recognized that the Power Systems business, and its employees, will be best positioned for future success in a company serving the electronics and power industries," said Bill O'Shea, executive vice president, corporate strategy and business development at Lucent Technologies. "Our goal was to find the right buyer, and we are very pleased that Tyco recognized the value of Lucent's Power Systems business and its talented people. We look forward to an ongoing relationship with Tyco and Power Systems under the multiyear supply agreement to purchase Power Systems products."

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 broadband and mobile Internet infrastructure; communications software; communications semiconductors and optoelectronics; Web-based enterprise ...