Agere Systems Announces Low-Cost Cell Phone Platform for the Market's Largest Segment

HONG KONG/ALLENTOWN, Pa. -- DECEMBER 7, 2006 -- Agere Systems (NYSE: AGR) today introduced the TrueNTRY™ X122, a low-cost cellular phone platform for the market’s largest segment. This announcement coincides with this week’s 3G World Congress and Mobility Marketplace 2006 in Hong Kong .

Agere’s new X122 platform consists of silicon chips, software (including Agere’s proven protocol stack and frameworks) and a development kit. The X122 platform adheres to the General Packet Radio Service (GPRS) cellular standard . Over the last two years, over 80 handset models have been designed incorporating Agere’s proven GPRS stack.

GPRS cell phones will remain the largest cell phone segment into 2010, according to the International Data Corporation. Cell phones housing the X122 are scheduled to become commercially available in the first half of 2007.

The X122 platform enables a wide range of capabilities for entry-level phones including compact disc-quality music, camera/camcorder functions and Internet access for a bill of materials cost of less than $30. Housed together with storage technology inside an entry-level cell phone, Agere’s X122 platform gives entry-level cell phone users access to several hundred songs, which can be played at high-quality sound.

"The X122 platform enables Agere’s customers to increase the quality and quantity of features on entry-level GPRS phones," said Denis Regimbal, executive vice president with Agere Systems. "Agere’s sampling of X122 platforms is another proof point of Agere’s achievements delivering greater value to cell phone users in the large and growing entry-level and feature phone market segments."

The X122 is the second platform Agere has introduced as part of its TrueNTRY™ portfolio of products tailored for low-cost cell phones. The first is the X125, which was introduced this past September.

Agere’s X122 platform provides 12 features that reduce BOM costs including:

• integrated speaker amplifier
• integrated CD-quality stereo
• integrated polyphonic sound synthesizer
• integrated Universal Serial Bus 2.0 On-the-Go controller with charging
• integrated power management circuits to support all phone peripherals
• integrated battery charging circuits with overvoltage protection

By providing a dedicated applications processor separate from the communications engine, the X122 platform reduces a cell phone manufacturer’s product development costs and boosts overall processing speed. The boosted horsepower provided by the dedicated applications processor enables several key benefits including:

• receiving phone calls or surfing the web while playing music
• easing of applications software code development, test and verification for cell phone manufacturers because it doesn’t impact the core communications engine
• reducing power consumption because the more power-hungry applications processor can be powered down the majority of time a phone is on
• freeing up cell phone manufacturers to focus on developing applications and man machine interfaces, without worrying about impacting the communications engine

The X122 platform supports advanced audio processing including dynamic noise suppression, echo cancellation, full-duplex speakerphone and a stereo equalizer.

The X122’s analog baseband integrates the GSM/GPRS handset features such as power control, frequency control, analog baseband processing, audio mixing and conversion, real time clock and power management.

Agere has already started shipping the platform to customers.

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 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 and software solutions for storage, mobility and networking markets. The company’s products enable a broad range of services and capabilities, from cell phones, PCs and hard disk drives to the world’s most sophisticated wireless and wireline networks. Agere’s customers include top manufacturers of consumer electronics and communications and computing equipment. Agere works to transform the performance of networks and consumer electronics by integrating systems knowledge and leading technology that enable people to stay connected -- perfecting the connected lifestyle.