Agere Systems Delivers TrueStore(TM) Chips to Cornice for High-Capacity Storage in Portable Consumer Electronics Devices

The Cornice SE delivers two gigabytes of capacity using an innovative storage architecture, allowing consumer electronics device manufacturers to develop mobile products that can store the equivalent of 600 songs at 128 kilobits-per-second, three and one-half hours of VHS-quality video, a continent's worth of GPS maps or thousands of high-quality digital camera images. Packed into a low-cost, half-cubic-inch package, the SE requires only one-fourth of the components of miniaturized magnetic disk drives, and offers the durability and extended battery life typically enjoyed by solid-state storage media.

"The Cornice SE is changing the industry's perception of miniaturized storage by enabling CE device manufacturers to design compelling high-capacity pocket-able products using our unique, low-cost storage solution," said Kevin Magenis, chief executive officer of Cornice Inc. "The read-channel represents one of only three chips in an SE, and Agere's TrueStore solution offers superior signal-to-noise performance and other features needed to deliver reliable, high-capacity data storage for very small, low-power electronic devices."

This week, Agere was named the top hard disk drive (HDD) IC supplier by industry analyst firm IDC in its report, "Worldwide Hard Disk Drive Semiconductor 2003 Vendor Shares." This is the second consecutive year in which Agere was ranked No. 1 overall in HDD electronics.

Agere has design wins with every manufacturer of one-inch drives in the market today. In addition, its storage IP was included in more than 60 percent of all hard disk drives shipped worldwide in 2003.

"Portable consumer electronics is one of the fastest growing segments in the storage industry, and Agere's storage electronics are allowing companies such as Cornice to take advantage of the continued market need for high-capacity solutions in products such as MP3 players and GPS devices," said Joe O'Hare, vice president of Agere's Storage division. "For developers focused on embedded storage for the mobile market, Agere's TrueStore read- channels ensure reliable data storage for portable consumer electronics without excessive battery drain."

Read-channel performance and power consumption are critical factors for ensuring that compact storage solutions can provide the battery life and smooth, error-free video and audio playback required to expand the market for high-capacity storage in portable consumer electronics. In addition to providing superior signal integrity, Agere's TrueStore RC6500LP read-channel IC is tailored to the power and size requirements of portable consumer electronics storage. The RC6500LP chip offers four power modes -- running, idle, standby and sleep -- with a power savings of up to 50 percent over previous generation Agere read-channels, depending on the mode selected and operating speed.

Cornice's innovative Storage Element received technical excellence awards in 2003 from two prestigious electronics publications, EDN and PC Magazine. Agere is currently shipping its RC6500LP read-channels in volume to multiple customers.

For more information, customers may visit Agere's Web site at http://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 e-mail 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 global leader in semiconductors for storage, wireless data, and public and enterprise networks. The company's chips and software power a broad range of computing and communications applications, from cell phones, PCs, PDAs, hard disk drives and gaming devices to the world's most sophisticated wireless and wireline networks. Agere's customers include the top manufacturers of consumer electronics, communications and computing equipment. Agere's products make personal broadband a reality, connecting people to information and entertainment -- at home, at work and on the road.

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

This release contains forward-looking statements based on information currently available to Agere. 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, our ability to keep pace with technological change, our 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, and our 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 March 31, 2004. 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: Glen Haley, +1-610-712-1747, cell: +1-610-217-0781,
glenhaley@agere.com, or JoAnna Schooler, +44-1344-865-815, or cell:
+44-7899-063-151, jschooler@agere.com, both of Agere

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