Agere Systems Drives Support for New 500 Mbit/s Wi-Fi Proposal

802.11n proposal incorporates MIMO technology to offer best combination of high data rates, spectral efficiency and backward compatibility for wireless consumer and enterprise applications

ALLENTOWN, Pa. -- July 12, 2004 -- Agere Systems (NYSE: AGR.A, AGR.B) today announced support for a baseline wireless networking specification that establishes ultra-fast data streams for wireless HDTV transmissions as well as high-density user environments for corporate and retail wireless networks. This proposal defines the next generation of wireless networking - referred to as the IEEE 802.11n protocol - to deliver a raw data rate of 500 megabits-per-second (Mbits/s), roughly 10 times faster than today's wireless LANs. It also ensures broad interoperability with existing Wi-Fi® standards and support for all major PC, consumer electronics and mobile platforms.

Target applications for the 802.11n standard fall into two basic groups - those requiring high-speed data transmissions plus strong quality of service (QoS), and those that need the equivalent of wired network performance for such high-density environments as a large enterprise or apartment complex. Agere's proposal, to be submitted to the IEEE this summer, incorporates continued innovations in multiple-input multiple-output (MIMO) techniques, as well as wide bandwidth channels, 5 GHz transmissions and numerous operating modes to ensure robust data throughput, increased network capacity and legacy protocol compatibility. In 2002, Agere gave the public its first glimpse of high data-rate technology by demonstrating a 3x3 (three transmitter/three receiver) MIMO system supporting 162 Mbits/s wireless networking speeds.

These techniques will help wireless networking products surpass today's Ethernet LAN speeds. While mandatory implementations for the proposed specification support 250 Mbits/sec, provisions would allow transmission speeds approaching 500 Mbits/s.

"With this proposal, Agere is helping to define a standard for true wire replacement in any PC, enterprise or mobile application," said Stan Swearingen, vice president of Agere's Computing Connectivity division. "Successful adoption of the new 802.11n standard requires flexible support for new technologies like HDTV, for operating environments including any home, office or hotspot, and for existing wireless protocols in place today."

Agere's 802.11n submission focuses on two techniques to drive higher data rates and spectral efficiency: MIMO and wide channel bandwidths.

• MIMO techniques for increased data rates - MIMO is a technique that increases data throughput on a single channel by creating more "air paths" for the data to be transmitted. Using multiple transmit and receive antennas, each path can carry a different set of data at the same frequency. MIMO improves network capacity by increasing the speed by which transmissions are sent, freeing up time for additional transmissions. Using MIMO to increase data rates also avoids the use of more complex modulation schemes that reduce the range and robustness of a WLAN solution.
• 40/20 megahertz (MHz) channel widths - This proposal supports both 20 and 40 MHz channel widths, allowing for worldwide operation and increased data capacity. The 40 MHz channels, consisting of two adjacent 20 MHz channels, will more than double today's 54 Mbit/s data rates to approximately 125 Mbits/s per transmission. This is accomplished by capitalizing on the unused quad band found between two channels.

Data throughput increases proportionally to the number of antennas, and Agere's proposal calls for a minimum of two antennas at each transmitter and receiver, with a maximum of four. A 2x2 antenna MIMO configuration coupled with wider channel bandwidths enables a 250 Mbits/s data rate. A 4x4 configuration can enable data rates approaching 500 Mbits/s, optimized for backhaul pipes in large retail stores, for example, to wirelessly link multiple access points together.

Other key specifications include:

• Operation in 5 GHz spectrum - With 440 MHz of bandwidth available in the 5 GHz frequency spectrum, 802.11n networks will benefit from having up to 11 available 40 MHz channels, compared to only two available wide-bandwidth channels in the 2.4 GHz band. This additional capacity affords greater opportunities for increased wireless services, such as offering a competitive selection of network operators in a given hotspot, facilitating high-speed connectivity to multiple apartments or offices, and delivering high-speed streaming video over dedicated channels. Wi-Fi connectivity at 5 GHz is also a favorable alternative to the more congested 2.4 GHz frequency band, which is already home to multiple wireless devices and applications, including cordless phones, microwave ovens, baby monitors and Bluetooth-based products.
• Coexistence and backward compatibility - Agere is committed to supporting new and existing operating environments for wireless networking. While this baseline specification focuses on 40 MHz channels in the 5 GHz band, it also supports 20 MHz channels and 2.4 GHz frequency use. This provides 802.11n systems with a path for backward compatibility with 802.11b, a and g networks, as well as compliance with the 20 MHz channel requirement for wireless LANs in Japan. This specification would also fully support the 802.11e QoS standard being finalized this year for Wi-Fi networks.
• Single and multiple destination frame aggregation - The proposal specifies a standardized frame aggregation for both single and multiple destinations to improve network efficiency and interoperability. Frame aggregation - which merges several frames together in a single packet - is important for streaming applications including wireless voice over IP and multimedia content.

Finalization of the 802.11n specification is expected to be completed by the IEEE in 2006.

About Agere Systems

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.

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 is a registered trademark and WaveLAN, Agere Systems and the Agere Systems logo are trademarks of Agere Systems Inc.

Wi-Fi is a registered trademark of The Wi-Fi Alliance.

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 March 31, 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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