ATLANTA -- Lucent Technologies (NYSE: LU) announced today it has made an investment in Home Wireless Networks Inc., a start-up technology company based here.

Home Wireless Networks will produce a patented digital wireless system designed to give local service providers an inexpensive, easy way to offer multiple telephone lines in homes and small businesses. Home Wireless Networks was founded by three leading telecommunications executives: Dr. John Taylor, who has served as an executive at Nortel, General Datacom, and who is known for turning Boston Technology into a strong global company; Richard Snelling, former executive vice president, BellSouth, who has led Videoconferencing Systems, Inc., through a turnaround to success; and, Stuckey McIntosh, who possesses a depth of experience in the wireless industry, and is one of the co-inventors of Home Wireless Networks' technology.

With the proliferation of home offices, fax machines and Internet usage, local telephone companies in the United States are experiencing increasing consumer demand for additional phone lines.

"Our digital, wireless solution will provide a simple, clean method for rapidly installing additional lines with minimal effort and cost," said Dr. John Taylor, chairman and CEO of Home Wireless Networks. "It also provides very flexible Internet connectivity and sets the stage for broad-based home control and telemetry communication in the future."

Installation of Home Wireless Networks' unique solution will allow quick addition of multiple phone lines -- a combination of basic and ISDN lines -- in a home and small business without touching the inside wiring. Instead, a controller unit located at the home uses wireless spectrum to manage and distribute multiple lines coming from the public network.

"Studies show that consumers will demand as many as 25 million secondary lines in the next three to four years," said Gerald Butters, Lucent's president of Network Systems for North America. "By investing in Home Wireless Networks, Lucent supports the development of a simple, cost-effective means for telephone companies and other service providers to satisfy consumers' needs for multiple lines."

Home Wireless Networks' initial system includes a controller unit; a wireless access unit, which provides network connectivity for telephones, fax machines and PCs and can be plugged into any power outlet; and a user-friendly digital cordless handset with an LCD display and soft keys for easy line and function selection. The system is expected to be available in second quarter 1998. More information on Home Wireless Networks is available at http://www.homewireless.com.

Lucent Technologies designs, builds and delivers a wide range of public and private networks, communications systems and software, consumer and business telephone systems and microelectronic components. Bell Labs is the research and development arm for the company. More information about Lucent Technologies, headquartered at Murray Hill, N.J., is available at http://www.lucent.com.