Lucent Acquires Herrmann Technology

MURRAY HILL, NJ, June 19 -- Lucent Technologies' Microelectronics Group, a provider of communications semiconductors, has announced the acquisition of Herrmann Technology, Inc., a supplier of devices for next-generation dense wavelength division multiplexing (DWDM) optical networks.

Lucent acquired Herrmann Technology, a privately held company based in Dallas, TX, in a stock transaction for approximately 7.3 million shares of Lucent's common stock, valued at about $438 million, based on the closing price of $60 for Lucent stock on June 16, 2000. Herrmann shareholders also could receive about an additional 675,000 shares (valued at approximately $40 million, based on the closing price of Lucent stock on June 16, 2000), contingent upon Herrmann Technology meeting certain performance-based goals.

The acquisition of Herrmann will provide Lucent with thin-film process technology used to make passive optical filters -- a key building block in designing optoelectronics components for DWDM networks. DWDM systems increase the capacity of optical fibers by combining and dividing different wavelengths of light, enabling multiple streams of voice, video, and data to travel through a single fiber-optic cable. Thin-film filters prevent interference between different wavelength channels by filtering unwanted frequencies of light.

"Coupling Herrmann Technology's critical technology with our broad product portfolio will speed our delivery of highly integrated solutions that will help lower design, development, and manufacturing costs for our customers," said Dan DiLeo, president of optoelectronic products with Lucent's Microelectronics Group. "The expertise and energy of the Herrmann Technology team will be a tremendous asset as we work together to satisfy the industry's enormous demand for optoelectronic components."

Herrmann Technology employs about 65 people, who are expected to remain in Dallas. Bill Herrmann, president of Herrmann Technology, will join the optoelectronics division of Lucent's Microelectronics Group as director of optical thin-film filter manufacturing and advanced process development.

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