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FACTS ABOUT LUCENT TECHNOLOGIES, INC.

A. ENVIRONMENTAL SCANNING

1. Demographic Variables

 United States of America:

* According to the population estimates of the US Census Bureau as of July 1, 2004, the total population of the United States is 293,655,404 (A-1).

* Age Distribution of the United States according to Census 2000 (A-2):

Age Number Percentage

Under 5 years 19,175,798 6.8

5 to 9 years 20,549,505 7.3

10 to 14 years 20,528,072 7.3

15 to 19 years 20,219,890 7.2

20 to 24 years 18,964,001 6.7

25 to 34 years 39,891,724 14.2

35 to 44 years 45,148,527 16.0

45 to 54 years 37,677,952 13.4

55 to 59 years 13,469,237 4.8

60 to 64 years 10,805,447 3.8

65 to 74 years 18,390,986 6.5

75 to 84 years 12,361,180 4.4

85 years and over 4,239,587 1.5

* The five states where population is primarily concentrated are California, Texas, New York, Florida and Illinois (A-1).

* The US population's composition of the different races is as follows: 75.1% White, 12.5% Hispanic, 12.3% African American, and 3.6% Asian (A-2).

* According to Census 2000, the median income of a typical American household is $41,994 (A-3).

* In October 1997, 37.4 million American households, or 36.6 percent had computers. Computer presence was most likely (75.9%) in households with yearly family incomes of $75,000 or more, while only 15.6% of households with incomes below $25,000 had a computer (A-19).

 The World:

* According to US Census Bureau, the world population is estimated to be 6,447, 945,987 (2005).

* In 2002, the world's annual average growth rate was 1.2 percent, down from a high of 2.2 percent in 1963-1954 (A-17).

* The breakdown of age in world's population is as follows (A-17):

Age Percentage

Children (0-14 years of age) 29%

Youth and women of child bearing age (15-29 years of age) 26%

Labor force (15-64 years of age) 64%

Elderly 7%

* Over the next 25 years, the size of child population relative to total population is expected to decline. The numbers of youth and women in their child-bearing years are projected to experience modest increases, but their proportions of the total population are expected to decrease modestly. The population of labor force age is expected to grow steadily. Finally, the elderly population is projected to grow considerably in both absolute and relative terms (A-17).

* The number of men and women on the planet is approximately the same: 101 men for every 100 women (A-17).

* Currently, the mostly populated countries in the world are: China, India, United States, Indonesia, Brazil, Pakistan, Bangladesh, Russia, Nigeria and Japan (A-18).

2. Economic Variables

 United States of America:

* In the first quarter of 2005, the inflation-adjusted GDP grew 3.5%. This is expected to encourage consumer spending, business inventory investment and exports (A-4).

* According to the Bureau of Economic Analysis (2005), in April 2005, personal income increased $69.1 billion or 0.7%. In addition, disposable income increased $45.7 billion or 0.5%.

* In 2004, information-communications- technology (ICT) producing industries contributed substantially to real-GDP growth. These industries increased 14.7% after increasing 13.2% (A-5).

* In April 2005 inflation rate was 3.51%. This rate was slightly above previous months' inflation rates (A-6).

 The World:

* The world's real GDP growth rate and trends (percent change) are shown as below:

Year Growth Rate Trend

2005 4.371 4.159

2006 4.267 4.189

2007 4.233 4.221

2008 4.175 4.254

2009 4.175 4.254

* The world real per capita GDP (percent change) is shown below:

Year Growth Rate Trend

2005 3.194 2.902

2006 3.106 2.926

2007 3.089 2.952

2008 3.048 2.978

2009 3.057 3.006

* The world trade volume (percent change):

Year Growth Rate Trend

2005 6.584 7.074

2006 6.423 7.109

2007 6.125 7.146

2008 5.954 7.185

2009 6.075 7.224

* The world real interest rate (percent change):

Year Real Interest Rate

2005 2.773

2006 3.112

2007 3.267

2008 3.292

2009 3.24

*Information taken from www.imf.org

3. Socio/Cultural Trends

 United States

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