**EXHIBIT 12**

**LUCENT TECHNOLOGIES INC. AND SUBSIDIARIES****COMPUTATION OF DEFICIENCY OF EARNINGS TO COVER COMBINED FIXED CHARGES****AND PREFERRED STOCK DIVIDEND REQUIREMENTS****AND RATIO OF EARNINGS TO COMBINED FIXED CHARGES****AND PREFERRED STOCK DIVIDEND REQUIREMENTS****(DOLLARS IN MILLIONS)****(UNAUDITED)**

|  |  | **FOR THE YEAR ENDED SEPTEMBER 30,**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  |
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|  |  | **2002****2001****2000****1999****1998**Income (loss) from continuing operations before income taxes     and losses from equity investments $(7,083)$(19,844)$2,388 $3,828 $1,466 Less: interest capitalized during the period  4  16  20  20  17 Add: Fixed charges  644  869  667  612  441                      Total earnings (loss) to cover fixed charges $(6,443)$(18,991)$3,035 $4,420 $1,890 Fixed charges:                Total interest expense including capitalized interest $469 $659 $434 $428 $298 Interest portion of rental expenses  175  210  233  184  143      Total fixed charges $644 $869 $667 $612 $441      Preferred stock dividends and accretion  167  28 —  —  —      Ratio of earnings to combined fixed charges and preferred          stock dividend requirements  —  —  4.6  7.2  4.3 Deficiency of earnings to cover combined fixed charges and     preferred stock dividend requirements $7,254 $19,888  —  —  — 
Fixed charges consist of interest expense on all indebtedness and that portion of operating lease rental expense that is representative of the interest factor. Preferred stock dividend requirements consist of the amount of pre-tax earnings that is required to pay the dividends on outstanding preferred stock.
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