Executive Summary Initiation Gate Review April 28, 2005

1. Executive SummaryInitiation Gate Review April 28, 2005 QD042H IBM NAR EDI Deployment WPO: Jose Mejia, WPE‘s: Steven Sherman and Jay FrenchIT Executive: Joe WarfsmanIT Project Manager: Peter Roeleveld Lucent Technologies – ProprietaryUse pursuant to company instruction

2. Table of Contents • Project Overview • Project Approach • Deliverable Summary • Milestone Review • Project Organization • Project Costs • Key Assumptions • Dependencies • Risks • Outstanding Issues • Next Steps • Attachments Lucent Technologies – ProprietaryUse pursuant to company instruction

3. Project Overview • Background • IBM has requested Lucent to implement Electronic Data Interchange (EDI) for the transmission of several transactional messages in support of a contractual obligation • Lucent FY04 revenue with IBM was $5M and is estimated to grow to $7M+ in FY05 • Customer order volume for FY04 was 73 orders globally and is expected to increase in conjunction with the increased revenue volume in FY05 • Project Goals and Objectives • Establish an EDI interface with IBM NAR • Deploy the following EDI transactions: • EDI 850 (Purchase Order) • EDI 860 (Order Changes – Customer) • EDI 810 (Invoicing) • EDI 824 (Application Advice) • EDI 820 (Remittance) Lucent Technologies – ProprietaryUse pursuant to company instruction

4. Project Overview Continued • Scope • IBM North America (US only) • IBM US SAP Sold To is 8100002 (INTERNATIONAL BUS MCHS CORP) • IBM US SAP Bill To codes are: 1400102 (4 Allegheny Ctr. Pittsburgh, PA 15212-5255), 1403661 (PO Box 9005 Endicott, NY 13761-9005) and 1403858 (4035 Seminole Trail Cumming, GA 30040) • Phase 1: • Purchase Order (EDI 850) • PO Change (EDI 860) • Phase 2: • Invoice (EDI 810) • Remittance (EDI 820) • Application Advice (EDI 824) Lucent Technologies – ProprietaryUse pursuant to company instruction

5. Project Approach • This project will use the Lucent PMO Methodology and Gate Review processes to ensure adherence to project timelines as well as accurate communication and understanding across the teams and business units • The size of the project is Medium. • Testing required with EDI and SAP • External testing required with IBM • The following Gate Reviews are planned during the course of the project: • Project Initiation Gate • Failsafe Gate for each phase of the project • Exit Gate • This project is classified as Medium, with full project commitment at Initiation • This project is being managed under the B2B FY05 Program (QD042) Lucent Technologies – ProprietaryUse pursuant to company instruction

6. Security Approach/Impact • The Risk Assessment Profile for QD042H has been approved by IT Security Risk Management (Barry Pulliam). The security impact is low since no changes to security are anticipated. • There are no security design requirements (will use existing security measures) • Therefore, this project requires no Security Testing. Lucent Technologies – ProprietaryUse pursuant to company instruction

7. Deliverable Summary Lucent Technologies – ProprietaryUse pursuant to company instruction

8. Deliverable Summary-2 Lucent Technologies – ProprietaryUse pursuant to company instruction

9. Milestone Review Overall Status: X Lucent Technologies – ProprietaryUse pursuant to company instruction

10. Project Organization Lucent Technologies – ProprietaryUse pursuant to company instruction

11. IT Program Costs (budget/forecast through project completion)Summary for Total B2B Program (all projects combined) Lucent Technologies – ProprietaryUse pursuant to company instruction

12. IT Project Costs (budget/forecast through project completion).Detail for QD042H IBM NAR EDI Lucent Technologies – ProprietaryUse pursuant to company instruction

13. On-Going IT Operational Cost Analysis (Total Project) • Notes: • Operational costs are expected to be absorbed by current support headcount. • Actual Program Costs are through 3/31/05. • Actual costs incurred by the following projects: • QD042A – MasTec EDI • QD042C – Qwest LCAM • QD042D – US Cellular EDI • QD042F – Telus • QD042K – Sprint 855 Modifications • QD042O – Sprint EDI/PO Tax Exempt Flag • QD042U – AT&T Ariba Upgrade • QD042S-1 – Verizon CCP+ Phase 2 Firm Schedule/Completion Notice • QD042W – Telefonica Add Ons Lucent Technologies – ProprietaryUse pursuant to company instruction

14. Key Assumptions Lucent Technologies – ProprietaryUse pursuant to company instruction

15. Dependencies • None at this time. Lucent Technologies – ProprietaryUse pursuant to company instruction

16. Risks If Risk is realized during project note “Yes” If not Realized note “No”. Lucent Technologies – ProprietaryUse pursuant to company instruction

17. Outstanding Issues None at this time. Lucent Technologies – ProprietaryUse pursuant to company instruction

18. Next Steps • Next Steps ResponsibleDue Date • Establish Weekly Team Meetings Peter Roeleveld 5/2/05 Lucent Technologies – ProprietaryUse pursuant to company instruction

19. Attachments • The next zip file contains • Project Request a • Project Definition Document a • Communication Plan a • Communication Plan Sign Off a • Security Risk Assessment Profile a • Security Review Sign Off a • WPE Sign Off a • Not yet available • Detailed Project Work Plan Lucent Technologies – ProprietaryUse pursuant to company instruction