Agere Systems Drives Mass-Market Evolution for Enhanced- Feature Mobile Phones with New Advanced Multimedia Framework

ALLENTOWN, Pa. -- November 17, 2004 -- Agere Systems (NYSE: AGR.A, AGR.B) today announced a new technology framework that enables mobile handset vendors to rapidly develop wireless phones supporting the latest advancements in multimedia for such applications as audio and video streaming and playback, video recording, digital photo imaging and downloadable ring tones. Unlike solutions that require an additional multimedia co-processor, the combination of this unified media framework and Agere's proven baseband silicon provides a secure and cost-effective platform supporting both the high-quality multimedia and assured communications performance that are essential for driving widespread, mass-market acceptance of enhanced-featured mobile devices. Agere is demonstrating this multimedia framework technology that includes software and hardware during the 3G World Congress tradeshow in Hong Kong this week.

Consumer demand for multimedia-capable phones continues to grow with network operators focusing their efforts on providing a wide array of innovative multimedia content and services. As a result, industry analyst firm Strategy Analytics estimates that multimedia-capable wireless phones are expected to represent 57 percent of global handset sales by 2009.*

Agere's multimedia framework is specifically designed to meet user expectations for uncompromising mobility by contributing to the compact size, power savings and low costs of a mobile handset design. The tight coupling of the framework's components with Agere's baseband solutions enables handsets to achieve the increased performance necessary for rich audio and video features, while eliminating the expense of an additional multimedia co-processor. In addition, the framework simplifies the process of combining and incorporating additional video and audio components, which helps phone makers to customize their solutions for specific segments of the market. Its modular structure also provides a stable software and hardware continuum as standards for new or enhanced multimedia applications emerge.

"Handset makers are facing a sea change as advances in technology enable new waves of mobile phone uses and segments requiring silicon and software with the flexibility to support varying levels of audio and video features," said Luc Seraphin, vice president of Agere's Mobility division. "This technology provides a foundation for multimedia from which customers can quickly expand and grow their product portfolios while taking comfort that they can maintain the fundamental communication performance of their phones."

The framework can be used for handsets based on 2.5G/GPRS, EDGE and 3G/UMTS network technologies. In addition, Agere's solution supports all of the latest multimedia standards available, including MPEG-4 and H.263 video, JPEG images, MP3® music, AAC and aacPlus™ audio, as well as MIDI ring tone synthesizers.

Agere recently began offering the multimedia framework as part of its baseband silicon and software solutions for GPRS and EDGE mobile phones. Presently, the company is sampling the solution to select 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 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 connect people to information and entertainment at home, at work and on the road -- making personal broadband a reality. More information on Agere is available at its website www.agere.com.

* Strategy Analytics' Wireless Device Strategies (WDS) strategic advisory service report Global Handset Market: Enabling Technologies Forecasts, 2004 - 2009
Agere is a registered trademark and Agere Systems and the Agere Systems logo are trademarks of Agere Systems Inc.
aacPlus is a trademark of Coding Technologies.
MP3 is a registered trademark of Blaupunkt GMBH.

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 June 30, 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.

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