Agere Systems Introduces Industry's Most Integrated ATM Adaptation Layer System-On-Chip for 3G Wireless Applications

Enables higher-quality wireless voice, video and data services to variety of mobile consumer devices

JUNE 3, 2002 - ALLENTOWN, Pa.- Agere Systems Inc. (NYSE: AGR.A, AGR.B), the world leader in communications components, today announced a system-on-a-chip (SoC) that enables wireless network operators and original equipment manufacturers (OEMs) to efficiently transmit higher-quality and greater volumes of voice, video and data over asynchronous transfer mode (ATM) networks. ATM is the preferred third-generation (3G) broadband protocol for its high and reliable level of multimedia applications support, scalability, multi-gigabit capacity and quality of service (QoS). Agere made the announcement at Supercomm 2002 in Atlanta, Ga. this week.

Called SAR-2K, the new chip helps bring wireless voice, video and data services to a variety of new consumer devices such as personal digital assistants, Web-enabled cellular phones and other mobile Internet appliances in next-generation radio access networks and wireless base stations. With 10 million gates, it integrates the most hardware and software in a single chip of its kind compared to competitive products. The SAR2K also replaces up to five components while offering speed and performance enhancements that can save significant amounts of development time and lower system costs compared to other solutions.

The SAR-2K maintains high-speed ATM connections of multimedia traffic between base stations and radio access network controllers. "It provides complete functionality for delivering the ATM adaptation layer necessary for 3G wireless traffic, while minimizing power consumption and cutting time-to-market for our customers' new radio access network controller and base station designs," said Jaime Mitchell, product marketing manager with Agere Systems.

The SAR-2K is a prime example of Agere's integration leadership in systems and software, enabling cost-effective, easy-to-implement solutions. "This key technology emphasizes Agere's commitment to the 3G wireless networks era and ATM--bringing to market the multiplicity and integration of services that customers want--quickly, cost-effectively and reliably," said Mark Pinto, vice president for Agere's processing, aggregation and switching division.

In addition to its high level of integration, which lowers chip count, systems cost and development time, SAR-2K offers exceptional low-power consumption, using less than 1.5 watts of power in most applications.

The SAR-2K is based on Agere Systems' COM-2 'Systems-to-Silicon' platform technology that combines a 0.16-micron modular silicon process with a suite of intellectual property (IP) cores and a robust design methodology. Using Agere's advanced modular CMOS process technology, SAR-2K integrates logic circuitry with over 4 megabits of an embedded high-density static random access memory (SRAM) architecture to give designers the simplicity and random access performance of SRAM at a density that supports complex designs.

The device combines ATM adaptation layer (AAL) types 2 and 5 functionality with associated data buffering and context descriptors into one chip. SAR-2K can be connected to a synchronous optical network/synchronous digital hierarchy (SONET/SDH) ATM access ring via a glueless interface to Agere System's TADM04622 add-drop multiplexer.

The AAL layer accommodates up to 2,048 full-duplex connections (which may be AAL2 channels or AAL5 VCs) via internal context and data buffers and can provide full-duplex AAL2 CID switching for rates up to 155 megabits-per-second (Mbit/s). In addition, the SAR-2K's flexible hardware and software architecture allows for on-chip conversion of AAL2 flows to AAL5 flows and AAL5 flows to AAL2 flows.

The AAL2 segmentation and reassembly (SAR) function supports ITU I.363.2 - 3 - (B-ISDN ATM adaptation layer (AAL) Type 2 specification), ITU I.366.1 (segmentation and reassembly service-specific convergence sublayer for the AAL type 2) and ITU I.366.2 (AAL type 2 service specific convergence sublayer for trunking) "intra-VC" class-of-service (CoS) to enable multiplexing of low-speed data and voice-over-ATM traffic from up to four classes into AAL2 VCs. SAR-2K's AAL layer also supports AAL5 per ITU I.363.5.

Device management is simplified by an integrated ARM9 core and Agere Systems firmware which utilizes the SSX5 kernel component of Real-Time Architect from Realogy, a division of Northern Real Time Applications (NRTA). SAR-2K's application software provides operations, administration and maintenance (OAM) support for resource allocation, connection management, and event correlation as well as integrated policing, OAM cell processing and statistics collection for performance monitoring.

"System-on-a-chip integration does not ensure time-to-market advantage without a complete underlying software solution as well," said Mitchell. "In SAR-2K, memory is a valuable resource and the small footprint of the SSX5 software makes it the correct choice for our application."

Communication with the device is accomplished through a 32-bit microprocessor interface. The system interface is through a 16-bit UTOPIA-2 interface with support for both cell and packet data transfer. The network interface is through a 16-bit UTOPIA-2 interface that supports cell transfer. Future enhancements of SAR-2K may include embedded software support for ITU Q.2630.1 AAL2 channel signaling protocol. . Follow-on products of SAR-2K may include SAR-8K which would support 8000 CID connections.

Samples of Agere's SAR-2K, designated TAAD08JU21BCLS2-DB, are available now with production quantities expected in early third calendar quarter of 2002. Unit pricing is targeted for the $420 range in quantities of 10,000 in 2003, once high-volume production levels are reached.

For more information about Agere's products, 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 and ask for Dept. A40; in Canada customers 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 30L-15P, 555 Union Boulevard, Allentown, Pa. 18109, USA.

Agere Systems is the world's No.1 provider of components for communications applications with leadership in optical components and integrated circuits. This dual capability uniquely positions Agere to deliver integrated solutions that form the building blocks for advanced wired, wireless, and optical communications networks. Agere also designs and manufactures a wide range of semiconductor solutions for communications-related devices used by consumers such as cellular phones, modems, and hard disk drives for personal computers and workstations. In addition, the company supplies complete wireless computer networking solutions through the ORiNOCO™ product line. More information about Agere Systems is available from its Web site at http://www.agere.com.

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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, completion of the distribution of Agere stock by Lucent Technologies, customer demand for our products and services, control of costs and expenses, timely completion of employment reductions and other restructuring and consolidation activities, price and product competition, keeping pace with technological change, dependence on new product development, reliance on major customers and suppliers, availability of manufacturing capacity, components and materials, general industry and market conditions and general domestic and international economic conditions including interest rate and currency exchange rate fluctuations. 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, 2001, and report on Form 10-Q for the period ending March 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