One a oink Venlise was eafabtisled mesh en Conhewsd ty te done (Me voit} ee Cre Compebrhve (ecue. Cost deli “a time pia SoS eae 1996 Redes if THU IAS,, mas}: prectuchion few Aciann Cufimers wos deme i otlahama o ‘Subhss enibtica ed te Streine Cords. te ele 4 “Asian Tv pec formed: Finap eee Test for slupmienk te Cus Cy eas Cours Fisiam customer wee far removed qm tee ender prroceciyy and monet achwhes q ¢ + This qs vectled rh Neod me, a4 . sgh Cost: assoclated with sk. pipebine ott tie uailed stale 2 Mavaqement focus o OL-Centne cy el em Nae sed Set appr > Ampatant Considerahin was evo amela. 7 the priduet ty tld es Ketan geunt Venbacs > when chenging the Coming 4 ae a nm Barts te te 1996 Recksipn * SEED efor om, oe ier ees ibe > Resitance from the Lucent preduel Wanapeureat wiinabon Sb wee thar Vtrane priduchon & Jv weld ryeduce Ge C mart up PR doamahe chauye ty business mete} ce reliance om parts eral © the av reduce} be + Pt = a fro Ne jd Lappict oxpenination * aan Qountnes a Cfteey of te 1996 fede Fi The Resubhs of the ches cheameche €B04 - Quarteny- LOT4 ‘Bata enty period: 2023.01, Reporting unit: 50AG - HVS! ‘Rupee B4302 - Capital Expenditure by Theme ‘MO MCproducts ‘92720 Expansion of production ine ara ee Difference between Investment Purpose total and amount "| theme to be zero.owe Fetes tat gy Ce ego AL " Exhibit! SESS® Switch Product Diagram and Photographs ommunication Module (CM) Switching Switching Module (SM) Module (SM) complete SESS® Switch system. Additional capacity is provided by adding more Switching Modules.Heecent Trohmotgien toda! Supp Chain Management -@1 at Heated SESSH Switeh Components and Asenibller ‘The following components were used in the SUSNM Swwiteh ‘The primary change in componente between 1996 and 2000 was ftom through-hale eompanents on printed cireuit boards to surfs mounted devices. ‘Components Used in the SESS® Switch, Required Manutacturing Component Type toftvne — Capability. Integrated Circuit S08 Mature Power Module 21 Mature Printed Circuit Board ro) Mature ‘Other Active YI Mature Capacitor 144 Simple Resistor 504 Simple Other Passive 268 Simple Motal Parts 832 Simple Backplane 32 Mature Cable/Wire S88 Simple Components Used in Line Pack” ‘Component Type Integrated Circuit Power Module Printed Circuit Board Other Active Capacitor Resistor Other PassiveLucent Technologies: Global Supply Chain Management GS-01 Exhibit 3 ‘Teledensity in Asian Countries A. Fixed-line teledensity (telephones per'tapita, in percent). 1996 1997 i Australia S19 India 140017 Indonesia Biya) Japan 49.0 49.0 Korea 431 445 ‘Malaysia 18.1 20.0 ‘New Zealand 465 Philippines 26 33 Singapore 50.2 53.5 Taiwan 46.7 50.2 Thailand Chea 0) China S7 1998 53.2 21 27 49.0 433 20.5 50.2 35 55.4 53.1 84 70 1999 54.4 2.5 29 49.0 46.2 20.3 513 Bf 57.4 54.9 85 8.6 2000 S14 3.0 3 49.4 475 23.0 537 4.0 63.0 58.8 96 2001 51.6 3.6 34 49.4 49.0 25.2 54.2 46 64.1 61.8 10.4 2002 S17 42 Ba 49.3 50.6 219 56.9 5.1 65.0 64.7 ILS B. Wireless penetration (mobile phones per capita, in percent). 1996 1997 1998 Australia India o On Indonesia 03 05 Japan 184 283 Korea 10 149 Malaysia 67 98 ‘New Zealand Philippines 13° 18 ‘Singapore 13.5 23.9 Taiwan S169 Thailand Boas) i Md 1999 37.0 02 11 42.6 50.1 129 29.0 3.8 45.6 47.0 39 34 2000 49.8 03 1s 48.5 65.2 16.0 35.4 67 65.0 62.9, 5.2 2001 59.2 04 2.0 53.6 23 17.6 453 9.0 70.0 726 64 2002 67.4 2003, 51.6 48 4.1 49.3 52.1 30.9 573 55 66.8 615 128For sales to Asian countries without joint ventures, the local sales directly with New Jersey, and the shipment from California was made ‘Source: Lucent Technologies.A.ncont Technolgies Global Supply Chain Mamagemend GS.00 __ eee Exhibit 6 wan High Technology Manufacturing ‘The electronics manufeturing capability within Taiwan grew rapidly in the 1990s. As an ‘example, consider the Hsin Chu Industrial Park, where Lucent's Taiwan manufacturing facilities wore located, In 1999, it housed 292 high technotogy companies, with 82,822 employees. This Tepresented a capital investment of USS18.S billion, with annual revenue of USS16.6 billion and. por employee revenue of US$200, 000, ‘The growth of Hsin Chu Industrial Park had been dramatic, as illustrated below.ateLucent Lucent Techotrgies | Globo Supply chat Nowe Revieind Key slal{ ° ae fates oie fhe Sicest af) Mon ‘Y Tu ely chet Cediah psa Asin Costly + Line Concom’ Rectesiny (Cosh cut 4 Rectuce teins > ae chavs ws fawn > Anfschreton ee Cand tae cha gig Ruan 2 > Kas tte Cusnent pres ofil) ophionl? > Prati equised) th Chauge % Condshén for. Combed evetuhowr of Ihe charts > e Focus. > Sregle ANT cock, spend Gepcte J a tsi Supply charts te wajor Gmpene st sh & problems that head. wee begun th Plagne tte aot + Compas Sockpteend * 1815: Tovemben af tue teloplere My eras Oa eel) CATE Comornhow ) Nees: Tncospealion aqar Hs charts wes to builol aud operati, tha Pee, OF Aushance Tebephone. mehuirte by telephone re United ofvtec 1904 : Bovken tubs Cyt Com panies | § Lucente 4 The SEs © cttel 9 Y Connected end-user Phere lhicoe avd phone other, ’ > The Sesc@pwiteh was he voedlde rediable avd a Used eter WN q FA SEER sunth FEM Mic aud 200 Uniqne Spo Ins Restachore. te | 3 pr ale | 1946 ; <2 mn and Cabte Companies uo Cuiteh SESE) DL past te Centied heer ty Coch