Agere Announces World's Fastest, Highest Capacity ATM-Enabled Network Processor for Voice Switching Applications

The APP100 chip processes voice signals at speeds up to 622 megabits per second-four times faster than the nearest competing standalone chips. In addition, the chip can simultaneously process 32,000 voice channels--eight times more than competing standalone chips.

Competing solutions require three chips to perform the same functions as the APP100. With its high level of integration, Agere's chip significantly reduces silicon, board space and system power requirements. The APP100 also connects directly, and is sold as a solution, with Agere's APP500 5 Gbits/s family of single chip network processor chips.

"Agere's approach of building a chip designed for voice-over-ATM contrasts with Agere's key competitors who attempt to do all AAL2 functions in software on a network processor," said Linley Gwennap, principal analyst of The Linley Group. "This software approach uses a significant portion of the processor's capabilities, leaving less room to perform other functions."

Agere's APP100 chip performs ATM Adaptation Layer 2 functions, which pack multiple voice conversations into an ATM cell.

"With our leading portfolio of traffic management, network processing and switching solutions, we are providing considerable reductions in total system costs for existing and next-generation communications equipment," said Mark Granahan, vice president with Agere Systems. "The key impact here is that our network processing solutions are opening doors for equipment manufacturers to offer service providers much more affordable broadband access and revenue- generating, quality of service capabilities."

Sample quantities of the APP100 are scheduled to be available in November; production quantities are planned for next April. The chip is priced at $40 in quantities of 1,000.

For more product information, customers may call the Agere Systems Customer Response Center, 1-800-372-2447 (or direct dial: 610-712-4323), Dept. B14 (in Canada, 1-800-553-2448, Dept. B14, fax number 1-610-712-4106, especially for callers outside of North America) or write to Agere Systems, Room 10A-301C, 1110 American Parkway NE, Lehigh Valley Central Campus, Allentown, Pa. 18109. Customers may also email: docmaster@agere.com.

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 for the hard disk drive market, with number one positions in sales of system-on-a-chip solutions and preamplifiers. 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/.

Agere's Forward-Looking Statements

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, 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 June 30, 2003. 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.

Agere is a registered trademark and Agere Systems and the Agere Systems logo are trademarks of Agere Systems Inc.

CONTACT: Charlie Hartley, +1-610-712-1728, cjhartley@agere.com, or
Vibha Agrawal, +1-610-712-1737, vagrawal@agere.com, both of Agere Systems

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