Agere Systems Announces Lead-Free RF Plastic Transistor Products for Reducing Packaging Costs up to 25 Percent

The plastic-encased transistors are used in wireless base station amplifiers, which rank among the most expensive components in a wireless base station. Further more, Agere's new products are lead-free, which reduces risks of environmental effects of the substance-a major concern in today's RF transistor market. They also are capable of continuous operation at a 200 degrees Celsius junction temperature. Agere's five overmolded plastic packaged transistors adhere to several of the world's most widely used wireless standards.

"The cost benefits of plastic RF transistors compared with ceramic ones are remarkable and undeniable," said Jagdish Rebello, PhD, analyst with iSuppli Corp. "A new family of products that decreases costs of wireless equipment, and thereby wireless services, positions Agere well as the widespread transition to plastic continues.

"This announcement represents the third major one since Agere entered the RF transistor market last year," he added. "Agere announced its entry into the business last year with cooling capabilities for base stations. And now they are announcing availability of a large number and wide range of plastic RF transistors."

Ceramic, a more expensive material than plastic, has been the main substance used with RF transistors for several years. RF transistor providers are transitioning to plastic because of cost and price pressures throughout the wireless industry.

"Wireless infrastructure equipment manufacturers are facing extreme pressure to reduce capital and operational costs," said Carlos Garcia, vice president with Agere Systems. "These demands drive the urgent need for such lower-priced RF power technology as plastic RF transistors. To build on our exciting momentum in the RF market, we are rolling out this new product family-squarely addressing what our customers need most."

The following Agere chips are being offered with overmolded plastic packaging: AGRA10, AGR09030, AGR09045, AGR09060 and AGRB10. The first four listed can be used across frequencies ranging up to 1 Gigahertz (GHz). The AGRB10 can be used in frequencies spanning 1 GHz to 2.7 GHz. These five new LDMOS devices range in power from 10 watts to 60 watts.

Agere's new line of transistors is sampling now and will be available in production quantities by May of this year. The transistors range in price from $8.50 to $32 in quantities of 10,000.

Agere Systems is a premier provider of advanced integrated circuit solutions for high-density storage, wireless data and multiservice networking applications. The company is the market leader in providing chips for desktop, mobile and consumer electronics hard disk drives. Agere's wireless data portfolio includes industry-leading solutions for data-capable cellular phones, as well as Wi-Fi/802.11 solutions for wireless LANs and computing applications. Agere also provides custom and standard 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/.

* Forward Concepts

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

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

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