Amoisonic Selects Agere Systems' GPRS Wireless Chipsets and Software to Deliver Enhanced Data Services in Mobile Phones

Agere's wireless platforms being used in Amoisonic phones currently shipping as well as next-generation models

ALLENTOWN, Pa. - MARCH 31, 2003  -- Agere Systems (NYSE: AGR.A, AGR.B) today announced that leading mobile phone manufacturer Amoisonic has chosen Agere's new wireless platform reference design to develop advanced data and multimedia General Packet Radio Service (GPRS) mobile phones. Agere's platform is a complete hardware and software solution that offers reduced size, cost and power consumption, providing significant flexibility in phone design and fast time-to-market.

Amoisonic has selected this platform as the foundation for a new generation of data-enhanced GPRS phones targeting the China market. In addition, Amoisonic is introducing mobile phones this month in China that use field-proven Agere GPRS solutions. Based on the Global System for Mobile (GSM) communications standard, GPRS-enabled phones offer features most in demand by consumers, including high-resolution color displays, multimedia messaging service (MMS), digital photo imaging, high-speed web browsing, polyphonic sound, and Java-based games.

"Amoisonic is serving the growing China market with mobile handsets that offer the latest multimedia technology available, and through Agere's platform, we will continue to develop high-performance, fully featured phones that push the boundaries of wireless data applications," said Li Xiaozhong, president of Amoisonic.

This month, Amoisonic introduces its new line of color-screen mobile phones, including the A9, A90, F9 and F99 models, which incorporate Agere's GSM/GPRS chip sets. These tri-band Class 8 handsets can receive data at up to 50 kilobits per second, and offer phone enhancements such as dual LCD displays, data/fax capability, and wireless application protocol service, depending on model.

For its next-generation designs, Amoisonic will use Agere's new Sceptre™ PF7 wireless platform. This reference design delivers a complete board-level solution - integrating Agere's Sceptre LF chipset (digital baseband, mixed signal and power management chips) with the radio, memory and associated components - in one-third less space than Agere's previous generation GPRS platform. This hardware, along with Agere's broad range of software capabilities, protocol stack and development tools, comprise the heart of data-capable mobile phones and offer reduced size, power consumption and bill of materials. Handset manufacturers can take this leading-edge reference design and develop a portfolio of products that provide their own customized look and feel to meet the growing demands for new features from operators and consumers.

"Agere's Sceptre PF7 is a complete mobile handset package that efficiently integrates chips and software, allowing wireless handset manufacturers to focus on differentiating their products through advanced features and industrial designs," said Luc Seraphin, vice president of Agere's Mobile Terminals division. "Agere and Amoisonic are developing mobile phones that bring together compact, high-performance GPRS platforms with the latest phone designs and functionality, delivering new levels of data services to wireless users."

The Sceptre PF7 platform offers a comprehensive software solution including:

• Multimedia messaging service. Agere's platform supports MMS services, enabling mobile phones to send and receive messages with text, sounds and images. MMS is a presentation layer that leverages past developments made in areas like short messaging service (SMS) and enhanced messaging service (EMS) and allows standardized access to messages.

• Packet broadcast control channel (PBCCH) functionality. PBCCH allows for better sharing of GSM and GPRS services for a network operator. With PBCCH, operators are not forced to use GSM channels to set up GPRS data calls, which inherently blocks other GSM calls in a cell, leading to a loss of potential voice revenue.

• Wireless Application Protocol (WAP) service. The Sceptre PF7 platform supports the latest WAP version 2.0, giving wireless handsets 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 format provide a rich, colorful user experience.

• Man-machine interface (MMI) support. Agere offers extensive upper-layer software support and interfacing tools that allow mobile phone makers to easily create the `look and feel' aspects of a phone in its design stage.

Agere's solution is specifically designed to deliver Class 10 GPRS mobile service -- the highest performance category currently supported by service providers, offering improved speed and network efficiency. Class 10 phones can manage a greater number of network timeslots, enabling data transfer speeds of up to 53.6 kilobits-per-second (Kbits/sec) in download and 26.8 Kbits/sec in upload. This capability can drive new data-intensive mobile phone features such as digital picture mail and e-commerce transactions. This platform is also equipped to support Class 12 service for future phone designs.

Agere is currently offering sample quantities of its Sceptre PF7 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 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 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 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.