Exhibit 99.2
[TOLLGRADE LOGO]
[LETTERHEAD]
Contact: Richard Skaare
412-820-1347
rskaare@tollgrade.com
TOLLGRADE COMPLETES ACQUISITION FROM LUCENT TECHNOLOGIES
Purchase of MLT/Loopcare software assets for approximately $60 million
expands Tollgrade into full test system leadership
PITTSBURGH, PA, September 30, 2001 -- Tollgrade Communications, Inc. (NASDAQ:
TLGD) today completed the acquisition of the software assets of the MLT/LoopCare
test system business from Lucent Technologies for approximately $60 million in
cash.
The Regional Bell Operating Companies (RBOCs) use MLT/LoopCare's
software-based system to test telephone line, or loop, services known as Plain
Old Telephone Services (POTS) Tollgrade, which has partnered with Lucent since
1998, will continue to integrate its DigiTest(R) hardware with LoopCare software
to economically solve customers' total testing needs. Those solutions will
handle not only today's POTS services but also the emerging needs of the digital
consumer. Additionally, Lucent and Tollgrade have also entered into a supply
agreement to provide LoopCare solutions for the Digital Subscriber Line (DSL)
and AnyMedia market.
"This acquisition is strategic for Tollgrade by establishing us as the
preeminent integrated and full-service provider among POTS test system
companies," said Tollgrade Chairman and CEO Chris Allison "The LoopCare purchase
comes at a time of other good news as we expect third-quarter revenue of
approximately $16 million and earnings of about $.15, both of which are within
the range that we noted in our second quarter earnings release."
LoopCare employs about 32 people. Tollgrade intends to move the group
to a facility near the current Liberty Corner, NJ location.
Parker/Hunter Incorporated acted as financial advisor to Tollgrade in
connection with this transaction.
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CONFERENCE CALL
On Monday, October 1, 2001, at 4:00 p.m. (Eastern Time), Chris Allison,
Tollgrade's Chairman and Chief Executive Officer, will host a teleconference to
discuss the company's acquisition of LoopCare. The telephone number for U.S.
participants is 866-233-3843, and for international callers the number is
612-288-0329.
In addition, participants may listen to the conference call via a live
broadcast over the Internet. To participate in this webcast, simply log on to
http://videonewswire.com/event.asp?id=1117 or log onto www.tollgrade.com and
visit the Investor Events page. The conference call also will be available for
replay from 8:30 p.m. Monday, October 1, 2001 until 11:59 p.m. Monday, October
8, 2001. Please call 1-800-475-6701 (320-365-3844 for international callers) and
use Access Code 605859.
ABOUT TOLLGRADE
Tollgrade Communications, Inc. (NASDAQ: TLGD) designs, engineers,
markets and supports test system, test access and status monitoring products for
the telecommunications and cable television industries. Tollgrade, which is
headquartered in a suburb of Pittsburgh, Pa., recorded 2000 revenues of $114.4
million. The company maintains a presence in regions across the United States
and in the United Kingdom. Tollgrade's World Wide Web address is
www.tollgrade.com.
ABOUT LUCENT TECHNOLOGIES
Lucent Technologies, headquartered in Murray Hill, N.J., 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
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business and consumers. For more information on Lucent Technologies, visit its
Web site at http://www.lucent.com.
FORWARD-LOOKING STATEMENTS
Statements included here, which are not historical in nature, are
forward-looking statements made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995, including without limitation,
statements as to management's beliefs, strategies, plans, expectations or
opinions in connection with company performance, which are based on a number of
assumptions concerning future conditions that may ultimately proved to be
inaccurate.
The forward-looking statements must be qualified by important factors
that could cause actual earnings and other results to differ materially from
those achieved in the past or those expected by the company. These include:
customers' ability to meet established purchase forecasts and their own growth
projections; the ability of certain customers to maintain financial strength and
access to capital; the ability for sales and marketing partners to meet their
own performance objectives and provide vendor financing to certain local
exchange carriers; customers' seasonal buying patterns and the risk of order
cancellations; risk of shortage of key components and possibilities of limited
source of supply; manufacturing delays and availability of manufacturial
capacity; intense competition in the market for the company's products; rapid
technological change along with the need to continually develop new products and
gain customer acceptance and approval; the company's dependence on a relatively
narrow range of products; competition; the company's dependence on key
employees; difficulties in managing the company's growth; the company's
dependence upon a small number of large customers and certain suppliers; the
company's dependence upon proprietary rights; risks of third party claims of
infringements; possibility of product defects; the potential of having excess
inventory and risk of parts' obsolescence should demand for the company's
products decrease substantially; and government regulation. Statements included
here speak as of the date of this release, and the company disclaims any duty to
update.
# # #
(R)DigiTest is a registered trademark of Tollgrade Communications, Inc
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