Novatel Wireless And Lucent Technologies Expand Joint Development And Supply Agreements For 3G UMTS Wireless Modem Cards

SAN DIEGO, CALIFORNIA & MURRAY HILL, NEW JERSEY - August 18, 2003 - Novatel Wireless, Inc. (Nasdaq:NVTL), a leading provider of wireless data access solutions, and Lucent Technologies, Inc. (NYSE:LU) today announced that they have completed amendments to their joint development and supply agreements for the Merlin U530TM third- generation (3G) Universal Mobile Telecommunications System (UMTS) wireless PC card modem. The Merlin U530 is a high-speed data device designed to enable mobile users to access the Internet and corporate intranets over mobile networks based on 3G UMTS technology.

Under the agreements, the two companies will collaborate on the continued development and commercial release of the Merlin U530 to mobile operators throughout Europe and Asia. Deliveries of the Merlin U530 to Lucent are scheduled to commence during the fourth quarter of 2003. Novatel Wireless will be one of Lucent's key suppliers of the products and could receive orders valued at as much as $50 million over an 18-month period depending on customer demand.

The dual-mode (GPRS/UMTS), tri-band (900/1800/2100) Merlin U530 is among the first wireless wide area network (WAN) PC card modems in the market capable of handling wireless data transmissions up to 384 kbps in a mobile environment on a UMTS network. The Merlin U530 was jointly developed by Lucent and Novatel Wireless under an agreement announced in August 2002, and is offered to mobile service providers in conjunction with Lucent's 3G UMTS mobile high-speed data solutions portfolio.

"The cards from Novatel Wireless combined with Lucent's end-to-end UMTS high-speed data solutions will enable mobile operators to provide their enterprise customers with secure 3G high-speed data services that can increase productivity, reduce costs and improve customer satisfaction," said Roger Derrien, vice president for UMTS product development with Lucent's Mobility Solutions Group. "We look forward to working with Novatel Wireless to meet the growing demand for 3G business solutions."

"The expansion of our agreement is a significant step as we move from the research and development phase of this initiative into the commercial realm," said Peter Leparulo, chief executive officer for Novatel Wireless. "By expanding our working relationship with Lucent we can more effectively drive the adoption of high-speed wireless data solutions worldwide."

Inserted into a laptop computer, the Merlin U530 can provide mobile professionals with wireless access to e-mail, Intranets and corporate databases via 3G UMTS networks with the same level of security and usability that they experience in their office. At speeds up to 384 kbps, the Merlin U530 seamlessly transmits data intensive files such as photos, PowerPoint presentations, AutoCAD files, and streaming audio and video.

UMTS -- also known as Wideband CDMA (W-CDMA) -- is an advanced and efficient wireless technology being introduced worldwide, and an international 3G standard established by the International Telecommunications Union (ITU). UMTS is a spread-spectrum technology designed to support the 3G-evolution needs of Global System for Mobile Communications (GSM), and other wireless network operators.

ABOUT LUCENT TECHNOLOGIES

Lucent Technologies, headquartered in Murray Hill, N.J., USA, designs and delivers networks for the world's largest communications service providers. Backed by Bell Labs research and development, Lucent relies on its strengths in mobility, optical, data and voice networking technologies as well as software and services to develop next-generation networks. The company's systems, services and software are designed to help customers quickly deploy and better manage their networks and create new, revenue-generating services that help businesses and consumers. For more information on Lucent Technologies, visit its Web site at www.lucent.com.

ABOUT NOVATEL WIRELESS, INC.

Novatel Wireless, Inc. is a leading developer of wireless PC cards, embedded modems, software and custom engineering for use in mobile computing devices. The company delivers innovative solutions to retail, wholesale and vertical markets worldwide enabling access to personal, corporate and public information over advanced wireless networks such as GSM, GPRS, CDMA and UMTS. Novatel Wireless MerlinTM PC Card and ExpediteTM Embedded Modems are used in portable computers, handheld devices and vertical market applications. Headquartered in San Diego, California, Novatel Wireless is listed on Nasdaq: NVTL. For more information, visit www.novatelwireless.com

© 2002 Novatel Wireless. All rights reserved. The Novatel Wireless logo, Merlin, Merlin U530 and Expedite are trademarks of Novatel Wireless, Inc. All other brands, products and company names mentioned herein are trademarks of their respective holders.

This release may contain forward-looking statements, which are made pursuant to the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, as amended to date. These forward-looking statements involve risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking statements contained herein. These factors include risks relating to technological changes, continued acceptance of and market demand for Novatel Wireless' products, projections of future results and dependence on intellectual property rights. These factors, as well as other factors that could cause actual results to differ materially, are discussed in more detail in Novatel Wireless' filings with the United States Securities and Exchange Commission (available at www.sec.gov) and other regulatory agencies.
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