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Lucent, Mirror Image Ink Technology Deal

Lucent Technologies Inc. and Mirror Image Internet Inc. Monday teamed up to develop and market technology that would dramatically improve the way content is delivered over the Internet.

At the heart of the alliance is a collaboration agreement to further Lucent's new Internet Content Delivery and Distribution business (iCDD).

Together with Lucent offspring Bell Laboratories Inc., the companies intend to develop ways to distribute Internet content faster and more efficiently, so that the Internet becomes easier for people to access.

As the online community shifts gears to access the Internet through wireless devices and optical networks, the challenge will be to transform potentially complex Internet content into interactive Web sites over portable devices.

Arun Netravali, Lucent Technologies' Bell Labs president, said Mirror Image's content access point network has an excellent distribution architecture for Lucent to build upon.

"Their approach to using sophisticated data storage techniques to solving Internet speed issues complements our focus on optical routing," Netravali said. "Mirror Image has developed a scalable, robust solution to distribute Internet content globally."

"By pooling the resources of Bell Labs with the cutting-edge technology development at Mirror Image, we are jointly creating the next generation of Internet content delivery and distribution technology," Netravali added.

Cos Santullo, Mirror Image president and chief executive officer said it was pleased to have Lucent as a partner to further develop the a global content distribution solution.

"Bell Lab's commitment and Lucent's vision for this fast-growing Internet segment will benefit users, service providers and content providers worldwide," Santullo said.

The alliance covers technology development, marketing and sales on a global basis. The partners intend to offer improved Internet content delivery products and services to service providers, content providers and enterprises worldwide.

Lucent established a new business group dubbed the iCDD to focus on contend delivery market, currently estimated at $374 million but expected to grow to about $6 billion in four years.

Bill O'Shea, Lucent executive vice president of strategy and business and iCDD chairman, said Lucent is focusing its resources on content delivery and distribution technology because it is the next step in the Internet frontier.

"We want to make the Internet infrastructure more accommodating to an even wider range of applications while reducing its complexity for the people who actually use it," O'Shea said.

"Our goal is to help service providers create an Internet experience for their customers that is appealing and useful in all aspects of their lives."

Mirror Image is principally owned by Internet holding company Xcelera.com Inc. The content delivery company received a financial infusion in April when Exodus Inc. took a 15 percent stake in Mirror Image. At the time of the deal, the transaction was worth $637.5 million in stock and cash. Hewlett-Packard Co. invested $52 million in the firm.