Agere Systems Unveils FLEXPHY Chip, Industry's Highest-Performance Single Physical Layer Device for Scalable Edge to Core Networks

Industry-leading signal performance plus innovative jitter attenuation function provide best-in-class signal integrity, lowest cost and power per port

December 2, 2002 -  ALLENTOWN, Pa. - Agere Systems Inc. (NYSE: AGR.A, AGR.B) today introduced the FlexPHY integrated circuit (IC), a new single-chip physical layer (PHY) transceiver that reduces space and power by more than 50 percent over existing two-chip solutions, and enables the highest transmission signal quality for today's multi-service metropolitan edge to core networks. The FlexPHY device breaks all performance records of previous Agere PHY chips, offering the industry's best performance, jitter margins, power consumption and integration, while lowering costs and speeding time-to-market for system vendors targeting 10-gigabit SONET/SDH, Ethernet (10 GE) and Fibre Channel (10 GFC) networks. Samples of the FlexPHY chip are expected to be available in the first quarter of calendar year 2003, with volume production expected by the second quarter of 2003.

The market for 10-gigabit PHYs is one shining spot of growth in the capex-constrained telecom market. This product segment is expected to increase from $276 million in sales in 2003 to $780 million in 2006, according to Sean Lavey, an analyst with IDC.

Rich feature set enables higher performance, port density and functionality
A PHY transceiver chip transmits and receives data between the physical (optical fiber) and information processing layers. On a network line card, Agere's FlexPHY chip resides at the boundary between the protocol framer and the optics, providing the bridge for improved, multi-rate optical performance with multi-protocol support for the framer. Agere recently introduced its MARSÖ (Multi-Application and Rate Solutions) family of chips, the industry's most integrated and versatile framers for multi-service metropolitan and access networks.

The FlexPHY chip has more than double the density of competitive offerings and uses industry-leading multi-rate, multi-protocol, signal integrity technology. No other PHY in the market today comes close to matching the FlexPHY chip's tested and proven low power consumption, small size, high performance and multiplicity of features. As such, the FlexPHY IC can be used in more communication network applications than comparable chips, from ATM and Ethernet switches and routers connecting data centers and IT infrastructure, to multiplexers and dense wave division multiplexed (DWDM) optical backbone transport systems.

The FlexPHY chip's jitter generation is as low as 30 milli-unit interval (mUI) peak-to-peak (pk-pk) -- the industry's best performance in this critical metric. Most competitive single-chip CMOS devices have jitter generation of greater than 50 mUI pk-pk. A typical network system jitter generation budget is typically 100 mUI pk-pk. The low generated jitter allows for additional flexibility in system design and makes the FlexPHY chip suitable for all optical networking applications from very short reach (VSR) to ultra-long reach (ULR), including DWDM.

To reduce board real estate, increase performance, flexibility and functionality, the FlexPHY chip integrates a clock multiplier unit (CMU), 16:1 multiplexer and 1:16 demultiplexer functions into a single device. It incorporates a highly sensitive (less than 10 mV) limiting amplifier with programmable amplitude threshold adjustment, as well as clock data recovery (CDR) function with programmable phase sampling point adjustment. These features extend the reach of the FlexPHY chip to ULR applications that are not available with competitive single-chip devices.

Enhancing performance and reliability, the FlexPHY IC offers the lowest power consumption on the market. It has a total average power consumption of 1.0 W versus most competitive solutions' 1.4 W to 2.0 W of power consumption. The FlexPHY chip's low power specification is key to developing high-density board designs for space-constrained equipment, improved performance and reliability.

Agere's FlexPHY chip is manufactured in 0.13 micron CMOS technology, which contributes to higher performance, integration, versatility and functionality while at the same time lowering power, space and system development costs. As a result, the FlexPHY chip supports a wide range of protocols, rates and reach. It addresses 10 GE (10.31 Gbits/s), 10 GFC (10.52 Gbits/s), OC-192 (9.95 Gbits/s), OC-192 forward error correction (FEC) (10.66 Gbits/s) and G.709 FEC (10.71 Gbits/s) rates. Further reducing space, power and cost, the FlexPHY IC integrates numerous previously discrete functions into a single system-on-chip (SoC), eliminating most external components.

"The FlexPHY chip further expands Agere's extensive family of reliable, industry-leading multi-rate, multi-protocol solutions for network connectivity and strongly leverages our integration and systems-level IC capabilities," said Kouroush Matloubi, marketing manager for PHY ICs with Agere Systems. "With the industry's broadest portfolio of multi-application communication IC solutions, we make it easier for customers to develop, build and deliver complete, scalable to 10 Gbit/s systems to market. Our expertise with strategic line card devices such as the FlexPHY devices allows us to deliver the lowest cost per kilometer per port solutions in the industry."

Agere's FlexPHY chip is well suited for high-performance, direct line card implementation as well as integration into optical transport modules. It is fully supported by Agere's world-class applications, sales and marketing teams. Complete data sheets for the FlexPHY chip (refer to device number TSCV01010G), as well as reference and evaluation platforms, are available. Agere expects to price volume production FlexPHY devices at $250 each in quantities of less than 1000 units.

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 and ask for Dept. A66. 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 email queries to docmaster@agere.com. Written inquiries should be sent to Agere Systems, Room 10A-301C, 1110 American Parkway NE, Lehigh Valley Central Camps, Allentown, Pa. 18109, USA.

Agere Systems is a premier provider of advanced integrated circuit solutions that access, move and store network information. Agere's access portfolio enables seamless network access and Internet connectivity through its industry-leading WiFi/802.11 solutions for wireless LANs and computing applications, as well as its GPRS offering for data-capable cellular phones. The company also provides custom and standard multi-service networking solutions, such as broadband Ethernet-over- SONET/SDH components and wireless infrastructure chips, to move information across metro, access and enterprise networks. Agere is the market leader in providing integrated circuits such as read-channel chips, preamplifiers and system-on-a-chip solutions for high-density storage applications. 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.

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FlexPHY, MARS, Agere Systems, Agere 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, customer demand for our products and services, control of costs and expenses, timely completion of employment reductions and other restructuring and consolidation activities, price and product competition, keeping pace with technological change, dependence on new product development, reliance on major customers and suppliers, availability of manufacturing capacity, components and materials, general industry and market conditions and general domestic and international economic conditions including interest rate and currency exchange rate fluctuations. 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, 2001, and report on Form 10-Q for the period ending June 30, 2002. 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.