Agere Systems Announces Integrated GPRS Hardware and Software Package for Data and Multimedia-Enhanced Mobile Phone Designs

Chip design combines baseband, mixed signal and power management functions in one-third less space than previous-generation GPRS solutions

ALLENTOWN, Pa. -- APRIL 21, 2003  -- Agere Systems (NYSE: AGR.A, AGR.B) today announced a new General Packet Radio Service (GPRS) hardware and software solution for developing feature-packed mobile phone designs. This complete GPRS package offers a new integrated chip design, enhanced audio performance, outstanding software and protocol stack processing, as well as the design and manufacturing flexibility handset makers need to successfully deliver the latest multimedia and data features, such as digital photo imaging, multimedia messaging service, high-speed web browsing, high-resolution color displays and Java-based gaming.

Agere's Sceptre™ TC GPRS solution combines baseband, mixed signal functions as well as a unique CMOS-based power management implementation in one-third less space than previous generation Agere chip sets. This hardware and software platform offers the highest performance category supported by operators, leading interoperability testing, and is software qualified to the most recently published Global Certification Forum (GCF) performance specification. Agere supplies the complete core GPRS capabilities needed to get wireless handset customers to market quickly.

"By providing exceptional GPRS software, Agere's Sceptre TC solution empowers customers to deliver high-performance, feature-rich data and multimedia phone designs in volume to any GSM market," said Luc Seraphin, vice president of Agere's Mobile Terminals division. "GPRS has clearly established itself as a leading technology in the global wireless handset market, and Agere's new hardware and software package serves as a foundation to accelerate the growth in GPRS-enabled GSM mobile phones deployed worldwide."

The Sceptre TC chip set combines power management, mixed-signal, linear and pulse charger functionality in a single chip. This chip design significantly reduces channel noise, improving overall audio performance. Agere's solution achieves low power consumption through close coupling of power management and baseband functions, as opposed to so-called "single-chip" GPRS solutions that do not include power management capabilities. The Sceptre TC solution maximizes software code re-use from previous generation GPRS chip sets, which gives mobile handset developers an integrated, low-risk package that can be used as a drop-in replacement for new phone designs, further improving customers' time to market.

In addition, Agere offers an open hardware and software radio interface, allowing developers to select from a host of RF chips available in the market to achieve the performance and cost requirements needed for their various mobile designs.

Agere's GPRS software has been qualified to the GCF 3.9.2 test specification, offering full Class 10 GPRS support and driving new high-capacity data features such as digital picture mail and e-commerce transactions. Class 10 phones can manage a greater number of network timeslots, enabling data transfer speeds of up to 53.6 kilobits-per-second (Kbits/s) in download and 26.8 Kbits/s in upload. The chip set supports Class 12 operation for future designs as well.

The Sceptre TC offers a comprehensive software solution including:

• Adaptive Multi-Rate (AMR) functionality. AMR can automatically adjust the speech codec to balance the quality of the connection against the security of the information being transmitted.
• Quad-band capability. Agere's Sceptre TC solution supports all four frequency bands (850/1900 megahertz for U.S., 900/1800 Mhz for Europe and Asia) enabling ODMs to design phones that can connect with all GSM-based networks and services in these regions.
• Multimedia messaging service. Agere's solution supports MMS services, enabling mobile phones to send and receive messages with text, sounds and images.
• Wireless Application Protocol (WAP) service. Sceptre TC supports WAP version 2.0, providing access to information and interactive services using existing Internet technologies and protocols such as TCP/IP or HTTP. Content formats like XHTML, CHTML or WML as well as pictures in JPEG or GIF formats provide a rich, colorful user experience.

Engineering samples of Agere's Sceptre TC hardware and software solution are available now, with production quantities expected in third calendar quarter 2003. The Sceptre TC solution will also be included in complete board-level reference designs from Agere this summer.

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 email 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 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 industry-leading Wi-Fi/802.11 solutions for wireless LANs and computing applications, as well as its GPRS offering for data-capable cellular phones. The company 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 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 www.agere.com.

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, satisfactory outcome of our upcoming union contract negotiations, keeping pace with technological change, 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, timely completion of employment reductions and other restructuring and consolidation activities, limits on our ability to issue equity to raise capital 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, 2002, and our quarterly report on Form 10-Q for the period ended December 31, 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.