Agere Systems First Company to Offer Multiple Sources of Highest-Performing, Low-Latency, DRAM Memory Chips for Network Processors

Network DRAM(TM) chips from Samsung and Network FCRAM(TM)** (Fast-Cycle Random Access Memory) chips from Toshiba America Electronic Components, Inc. (TAEC) are used and compatible with Agere's Advanced PayloadPlus(R) (APP500) family of network processor and traffic management devices.

By offering network processor customers multiple sources from which to obtain the chips quickly and easily, Agere and its memory suppliers provide a lower risk procurement scenario. Samsung, the world's largest memory chipmaker, is committed to long-term support of its Network DRAM devices. Toshiba, a leader in high-performance memory technology, is also committed to Network FCRAM, which it originally introduced in the year 2000.

"It is critical for network processor customers to make sure they have a viable supplier base for their required memories to ensure continuity of supply," said Linley Gwennap, president of The Linley Group, a networking analysis company. "Having a multi-sourced memory technology available for high performance networking applications is critical to many networking equipment manufacturers."

Network DRAM and Network FCRAM products address the needs of networking and communications customers. They combine DRAM densities with random cycle performances that approach SRAM (Static Random Access Memory) speeds. This allows equipment manufacturers to develop higher performance, lower cost, and lower power communications systems than they could with memory chips used in personal computers, such as Double Data Rate Synchronous Dynamic Random Access Memory (DDR SDRAM) and Synchronous Static Random Access Memory (SSRAM).

Samsung's Network DRAM and Toshiba's Network FCRAM are specification- compatible and the two companies have agreed upon next-generation product specifications.

Through this multi-sourcing relationship, Agere has attained support for commercial and industrial temperature Network DRAM and Network FCRAM devices and a roadmap for higher-speed devices up to 400 MHz. Agere is also working with Samsung and Toshiba to ensure future generations of Network DRAMs and Network FCRAMs meet Agere's customer needs.

"Networking equipment manufacturers need to be comfortable they can develop solutions achieving the high level of performance required today without being restricted to a single supplier for their memory devices," said Bill Klein, senior marketing manager with Agere Systems. "Agere's relationship with Samsung and Toshiba creates that comfort level and reduces supply risk."

Agere's customers for traffic management chips include Calix, Ericsson, Huawei Technologies, LG Electronics, Laurel Networks, Lucent Technologies, NEC, Nokia, Nortel Networks, Siemens, UTStarcom and many other major system vendors.

These Agere chips are used in a wide range of wired and wireless communications equipment, from digital subscriber line access multiplexers to routers to wireless base stations. Traffic management functionality is critical for the delivery of voice, data and video to homes and businesses over wireless, DSL and cable modem networks.

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/. Additional information can be found at networkfcram.com.

   *  In-Stat/MDR and RHK
   ** Developed by Toshiba Corp.

Agere is a registered trademark, and Agere Systems and the Agere Systems logo are trademarks of Agere Systems Inc. Network DRAM is a trademark of Samsung Electronics, Co. FCRAM is a trademark of Fujitsu Limited.

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, keeping pace with technological change, dependence on new product development, price and product competition, availability of manufacturing capacity, the impact of any global or regional health epidemic, such as severe acute respiratory syndrome, customer demand for our products and services, general industry and market conditions, 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, 2003, and our quarterly report on Form 10-Q for the period ended December 31, 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.

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

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