SCC Communications Corp. Acquires Lucent Public Safety Systems

SCC Communications Corp. Acquires Lucent Public Safety Systems

SCC Communications Corp. a leader in enhanced emergency communications services, and Lucent Public Safety Systems today announced a definitive agreement under which SCC will acquire Lucent Public Safety Systems (LPSS), an internal venture of Lucent Technologies and a leading provider of 9-1-1 support hardware and software to the telecommunications market. SCC will issue approximately 6.1 million shares of common stock in the acquisition. Based on the closing price of SCC common stock Friday, Oct. 13, the value of the transaction is approximately $40 million. As a result of the acquisition, Lucent will own approximately 35 percent of the common stock of SCC, which will continue to be headquartered in Boulder, Colorado. The transaction will not change the product and service choices between SCC and LPSS, and their respective customers. With the acquisition, however, SCC will integrate the management, expertise and technology of the two entities.

SCC has about 460 employees nationwide. SCC will retain a suburban Chicago location, where LPSS employs about 100 people. At this time, SCC has no plans for reductions in staff. The acquisition will likely generate new positions as the company moves forward in its development efforts. SCC has provided public safety data-management products and services for 21 years, and has developed data management technology for new telecommunications devices such as wireless telephony and Private Branch Exchanges (PBX). SCC manages more than 95 million 9-1-1 records for incumbent local exchange carriers, competitive local exchange carriers, integrated communications carriers, wireless carriers and state and local governments. The company had 1999 revenue of $32.6 million, and revenue in the first half of 2000 of $19.9 million.

LPSS provides 9-1-1 supporting hardware and software technology, including the award-winning Palladium(TM) call center and data-management products. A number of leading telecommunications companies manage their 9-1-1 infrastructure with LPSS's hardware and software systems. In addition, LPSS products are used by public safety call centers across the nation to receive and respond to wireline and wireless E9-1-1 calls. As with other companies that sell hardware and software licenses and systems, revenues of LPSS are variable -- a combination of monthly recurring revenues and one-time sales of very large systems. Lucent's computer aided dispatch and records management system products are not included in the scope of the acquisition. These products will continue to be supported by 911 Data Systems, another unit of Lucent Technologies.

More information available at www.scc911.com