Agere Systems Announces Two New Integrated VoIP Phone Chips for Converged Voice and Data Networks

Internet telephones converge voice and data connections on a single Ethernet outlet, enabling users whether in an enterprise or residence to use their communications networks more efficiently, reducing per-call costs and eliminating the need for separate network cabling.

"Tenovis has selected Agere's T8300 with integrated USB because of the increased level of performance and functional integration," said Christian von Reventlow, Tenovis' chief technical officer. "By aligning ourselves with suppliers like Agere that offer unparalleled expertise in voice telephony, we believe that Tenovis is well positioned to be a leading provider of solutions that enable the cost-effective convergence of voice and data communications."

Currently, Tenovis is shipping several models of IP phones that are based on Agere two-chip VoIP products. Telrad Connegy also is using Agere's two- port chips in its UNITe IP systems.

"Telrad's UNITe IP systems are designed to address the need for functionality and efficiency that are inherent to IP telephony," said Opher Yaron, vice president of research and development at Telrad Connegy. "The broad range of features that Agere provides in its voice over IP chips make them the logical choice for systems providers that are committed to quickly deliver cutting-edge solutions for IP telephones."

According to Allied Business Intelligence, an industry analysis firm, the market for IP Phone sets will grow from 453,000 in 2000 to 38 million units in 2007, a compound annual growth rate of 88 percent.

"We are using Agere's expertise across the broad spectrum of communications applications to deliver a complete portfolio of silicon and software that supports the rapid introduction of low-cost, flexible wireline and wireless IP Phones," said Jeff Arnold, director of Agere's VoIP client chip business. "Tenovis and Telrad Connegy are two of the leading providers of VoIP systems utilizing Agere's chips to meet the cost and performance requirements necessary to expand IP telephony to the broader enterprise and residential markets."

Agere's newest VoIP chips support wide-band codecs for enhanced voice quality, three-way teleconferencing, and full-duplex speakerphone capability with state-of-the-art, self-adaptive Acoustic Echo Cancellation. The T8300 and the T8303 are single-chip solutions that couple Agere's DSP (digital signal processing) 1600 core with an ARM940T microcontroller, allowing manufacturers to use the same software for a broad range of IP phone designs. The inclusion of 96 Kbytes of ROM and 56 Kbytes of RAM on-chip eliminates the need for any external DSP memory with the T8300 and T8303. In addition, these SoCs provide phone manufacturers with an unprecedented level of integration eliminating the need for external devices such as Ethernet PHY, codecs, and amplifiers. The T8300 is also available with a USB1.1 host controller.

Agere's IP Phone chips also are compatible with its industry leading WaveLAN(TM) wireless networking components, providing a simple migration path to solutions that integrate the two technologies for cost-effective voice over wireless LAN capabilities. The T8300 is priced at approximately $18 in production quantities of 50,000. The T8303 is offered at approximately $12 in quantities of 50,000.

For more information, customers may visit Agere's Web site at www.agere.com or contact one of Agere's regional sales offices. Customers in the U.S. may also call the Agere Systems Customer Response Center at 1-800-372-2447. Customers in Canada may call 1-800-553-2448. Customers outside those countries may call +1-610-712-4323. Fax inquiries may be directed to +1-610-712-4106, or email queries to docmaster@agere.com. Written inquiries should be sent to Agere Systems, Room 10A-301C, 1110 American Parkway NE, Lehigh Valley Central Campus, Allentown, PA, 18109, USA.

Agere Systems is a premier provider of advanced integrated circuit solutions for wireless data, high-density storage and multiservice networking applications. Agere's wireless data portfolio enables seamless network access and Internet connectivity through its GPRS offering for data-capable cellular phones, as well as Wi-Fi/802.11 solutions for wireless LANs and computing applications. The company is the market leader in providing integrated circuits such as read-channel chips, preamplifiers and system-on-a-chip solutions for high-density storage applications. Agere also provides custom and standard multiservice networking solutions to move information across wired, wireless and enterprise networks. Agere's customers include the leading PC manufacturers, wireless terminal providers, network equipment suppliers and hard-disk drive providers. 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, satisfactory outcome of our union contract negotiations, the impact of any global or regional health epidemic, such as severe acute respiratory syndrome, keeping pace with technological change, dependence on new product development, price and product competition, availability of manufacturing capacity, customer demand for our products and services, general industry and market conditions, timely completion of employment reductions and other restructuring and consolidation activities, limits on our ability to issue equity to raise capital and reliance on major customers and suppliers. 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, 2002, and our quarterly report on Form 10-Q for the period ended December 31, 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.

CONTACT: JoAnna Schooler, +1-610-712-1746 or +1-908-283-4060 (cellular),
jschooler@agere.com; or Glen Haley, +1-610-712-1747, +1-610-217-0781
(cellular) or glenhaley@agere.com, both of Agere Systems

Web site: http://www.tenovis.com/

Web site: http://www.connegy.co.il/

Web site: http://www.agere.com/