Agere Systems Demonstrates the Industry's First 162Mbits/s High-Speed Wireless Networking Chip

LAS VEGAS, Nov. 18 /PRNewswire/ -- Agere Systems (NYSE: AGR.A, AGR.B) today announced a breakthrough in wireless data technology aimed at supporting high-definition video in future 802.11-based home entertainment and enterprise desktop PC applications. Agere has demonstrated next-generation chips capable of transmitting wireless data in excess of 162 megabits-per-second (Mbits/s) in the 5GHz frequency band. An animated presentation detailing the demonstration of this leading-edge technology is available at Booth #2940, during the COMDEX Show being held this week in Las Vegas.

This innovation, achieved earlier this month at Eindhoven University of Technology in the Netherlands, will allow wireless data networks to rival the speed and capacity of today's wired networks. The technology gives users the freedom of reliable wireless network access throughout the office and home where emerging applications including high-definition video are likely to require higher rates of data transmission. In-Stat/MDR, an industry analyst firm, forecasts the market for 802.11 devices in the home will increase from six million units in 2002 to more than 25 million units in 2005. The firm projects that the overall market for 802.11 devices will total 60 million units in 2005.

"We are committed to delivering technological advances that will support data intensive applications and drive widespread growth in the wireless LAN industry," said Tony Grewe, director of strategic marketing for Agere Systems' Client Systems Group. "This demonstration offers a glimpse of the advances Agere is pursuing to fuel the expansion of wireless data beyond e-mail for business users into home applications such as multimedia entertainment."

Agere's demonstration platform combines Multiple Input Multiple Output (MIMO) and Orthogonal Frequency Division Multiplexing (OFDM) -- two of the most promising leading-edge technologies to increase data rates in the currently available radio spectrum for wireless multimedia. OFDM technology divides the frequency band into numerous parallel sub-channels to guard against interference, while MIMO transmission significantly increases data rates with several antennas transmitting data streams at 54 Mbits/s and operating in the same frequency. Together, the two technologies are able to produce a robust wireless data link that can transmit data at more than 162 Mbits/s, depending on the total number of antennas deployed.

Specifically, Agere's platform transmits data using IEEE 802.11a technology in the 5GHz frequency band, with three separate transmitter and receiver antennas. The demonstration shows that the growth in data throughput increases proportionally to the number of antennas. Agere plans to refine this leading-edge wireless technology to meet anticipated customer demand in late-2004 for solutions that tie together the Internet, television, audio and other broadband services wirelessly.

Today, Agere's Wi-Fi/802.11 chipsets and modules are incorporated into products from virtually all of the top PC manufacturers. In addition, several Taiwan-based original design manufacturers (ODMs), including Accton Technology Corp., Ambit Microsystems Corp., Askey Computer Corp., CyberTAN Technology, Inc. and Universal Scientific Industries, have selected Agere's WaveLAN chipsets, modules and reference designs as a technology platform for their enhanced wireless LAN products.

Agere Systems is a premier provider of advanced integrated circuit (IC) solutions that access, move and store network information. Agere's IC solutions form the building blocks for a broad range of communications and computing applications. The company is the leader in providing storage solutions for hard disk drives with its read-channel chips, preamplifiers and system-on-a-chip solutions, and the No. 2 provider of Wi-Fi solutions for wireless LAN applications. For network equipment providers, Agere is a leading supplier of ICs for wired communications, network switching and access, and ATM and SONET/SDH solutions. In addition, Agere is the No. 2 supplier of application-specific ICs (ASICs) for communications applications. More information about Agere Systems is available from its Web site at http://www.agere.com .

This release contains forward-looking statements based on information available to Agere as of the date hereof. Agere's actual results could differ materially from the results stated or implied by such forward-looking statements due to a number of risks and uncertainties. These risks and uncertainties include, but are not limited to, customer demand for our products and services, control of costs and expenses, timely completion of employment reductions and other restructuring and consolidation activities, price and product competition, keeping pace with technological change, dependence on new product development, reliance on major customers and suppliers, availability of manufacturing capacity, components and materials, general industry and market conditions and general domestic and international economic conditions including interest rate and currency exchange rate fluctuations. For a further discussion of these and other risks and uncertainties, see our annual report on Form 10-K for the fiscal year ended September 30, 2001, and report on Form 10-Q for the period ending June 30, 2002. Agere disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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