Agere Systems Announces the Industry's Most Integrated and Comprehensive GPRS/EDGE Platform for Multimedia Wireless Phones

• Solution provides a broad range of compelling features and superior performance, while maintaining power efficiency, low cost and compact size
• Combination of Agere's expertise in mobile handset solutions and multimedia applications software from leading vendors reduces time-to-market by up to three months

ALLENTOWN, Pa. -- October 19, 2004 -- Agere Systems (NYSE: AGR.A, AGR.B) today announced a reference platform for multimedia mobile phones based on GPRS/EDGE technology that is capable of reducing handset time-to-market by up to three months. Agere's EDGE reference platform uses advanced silicon and a proven software architecture as a basis for new features from such leading suppliers as CSR, Coding Technologies, Esmertec, Hantro, Qualphone and Sonic Network, enabling handset manufacturers to quickly address growing demand for multimedia phones supporting new applications and data transmission speeds that are up to three times faster than today's GPRS models. Agere will demonstrate the platform Oct. 26-30 during the PT Expo Comm China tradeshow in Beijing.

At the center of Agere's EDGE reference platform is the Sceptre™ HPE chip set, which is the industry's fastest and smallest Class 12 capable EDGE chip set available. Including power management, the solution's overall footprint of 164 square millimeters is up to 20 percent smaller than competing solutions. Equipped with an ARM®946E-S embedded core, Sceptre HPE is able to provide the performance required for rich multimedia without needing an additional multimedia co-processor.

Along with the chip set, Agere is providing a broad range of pre-integrated and tested third-party applications so that handset makers can easily deliver advanced features that consumers are expecting such as MP3® music and MPEG-4 video playback. Agere is also able to provide licensing for all of the software which simplifies and reduces the development process since separate contracts with each supplier are no longer generally required.

"The mobile phone market is changing at red-hot speeds and handset makers are turning to chip set suppliers that can quickly deliver more complete and customized solutions," said Luc Seraphin, vice president of Agere's Mobility division. "Agere's platform addresses the toughest challenge mobile handset manufacturers are facing today by enabling them to design EDGE-capable handsets for multiple markets that support an ever-growing array of multimedia applications and services while maintaining the fundamental requirements for size and power consumption."

Industry analyst firm Gartner estimates that EDGE-enabled phones will account for 17.2 percent of GSM handset shipments worldwide by the end of 2006.*

Reference platforms are an extension of the reference design concept, a well-established practice in mobile handset design that traditionally involves a silicon vendor supplying chip sets and some related firmware. Typically, this model leaves handset makers to tackle various other challenges such as the addition of new features and network interoperability verification. By comparison, Agere's reference platforms are more comprehensive, offering a flexible user interface environment, a full portfolio of proven applications, validated hardware peripheral support and PC tools for the required testing and customization. As a result, a handset maker can rapidly accelerate time to market and volume production whether they are an established handset vendor looking to quickly extend their product portfolio or a new entrant who is unfamiliar with the technology and the network testing requirements.

Agere's GPRS/EDGE reference platform is based on the solid foundation the company built as a leading supplier of GPRS solutions and is further strengthened by its relationships with leading applications providers. Within the platform, Agere offers advanced features and connectivity options for new mobile phones including MPEG-4 video delivering up to 20 frames-per-second playback, MP3® music and aacPlus ring tones, EAS™ 40-note polyphonic sound in software, IP multimedia subsystem (IMS), push-to-talk, on-chip USB, Bluetooth® and infrared (IrDA) connectivity, Java™, removable secure digital (SD) and multimedia memory cards (MMC).

Using four downlink and two uplink network timeslots, Agere's GPRS/EDGE solution enables download speeds of more than 200 kilobits-per-second (Kbits/s) and upload speeds exceeding 100 Kbits/s, roughly three times the data rate of real-world GPRS mobile service. The solution is capable of Class 12 EDGE operation when a network is deployed.

Agere is currently sampling production-ready EDGE reference platforms to multiple customers who are developing handset models using the solution.

For more information on Agere's EDGE and GPRS baseband solutions and reference platforms, 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.

*Gartner Forecast: Mobile Terminals, Worldwide, 1999-2008

Agere is a registered trademark, Sceptre, Agere Systems and the Agere Systems logo are trademarks of Agere Systems Inc.
ARM®946E-S is a registered trademark of ARM Limited.
Java is a trademark of Sun Microsystems Inc.
MP3 is a registered trademark of Blaupunkt GMBH
Bluetooth is a registered trademark of the Bluetooth Sig, Inc.
EAS is a trademark of Sonic Network 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 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.