Agere Systems, Data Connection to Provide Integrated Software That is Expected to Save Communications Equipment Industry Millions of Dollars.

Business Editors/High-Tech Writers

ALLENTOWN, Pa.--(BUSINESS WIRE)--May 4, 2004

Solutions use MPLS and ATM Technologies for Next-Generation

Multiservice Networks; Agreement Can Accelerate Deployment

of Affordable Broadband Services by up to Nine Months

Agere Systems (NYSE: AGR.A, AGR.B) and Data Connection Limited (DCL) today announced that they are developing a range of integrated software platforms for next-generation multiservice communications equipment.

These platforms can reduce product development costs by millions of dollars, accelerate product delivery by up to nine months and simplify product designs and migration paths from current to next-generation equipment. These numerous benefits result from eliminating the time and money equipment manufacturers have to spend to integrate layers of underlying software from different sources.

Agere and DCL's new software platforms combine Multi-Protocol Label Switching (MPLS), Internet Protocol (IP) and Asynchronous Transfer Mode (ATM) technologies and capabilities. Each of these technologies is key for converging affordable, next-generation access, edge and core equipment.

MPLS has a major role in delivering these benefits. A rapidly emerging protocol for traffic engineering and dynamic routing and switching of voice, data, and video, MPLS enables differentiated, prioritized services; guaranteed bandwidth; scalability using switching technology; enhanced traffic-shaping; reduced network crosstalk; and lower management overhead costs associated with handling different protocols. The Agere and DCL software solutions also feature world-class ATM technology, which has similar capabilities to MPLS. Agere and DCL are the world leaders in sales of ATM chips(1) and control-plane protocol software, respectively.

These platform solutions integrate Agere's traffic management network processor chips and software with DCL software. The solutions target a broad range of wireline and wireless communications equipment applications including Digital Subscriber Line Access Multiplexers (DSLAM), optical networking gear, IP routers, edge switches and wireless base stations.

Specifically, Agere will integrate its Functional Application Programming Interface (FPI) software with a range of DCL's MPLS, IP routing and ATM protocol software stacks, initially including: DC-MPLS, DC-BGP (Border Gateway Protocol), DC-OSPF (Open Shortest Path First) and DC-ATM. Agere's FPI software is designed for platforms based on Agere's single-chip network processor solutions supporting protocol processing and traffic management.

"Service providers are racing to provide affordable broadband services and are pushing MPLS, IP and ATM technologies further into the access portion of the network," said Samir Samhouri, marketing director with Agere Systems. "This trend aims to raise the Average Revenue Per User (ARPU). To meet this key requirement, communication equipment providers want Agere to deliver to them integrated solutions that get their products to market faster, at lower cost, and with lower risk and greater flexibility to upgrade their systems in the future.

"Agere chose to work with DCL because the company helps us meet our customers' most important and time-sensitive requirements, particularly in delivering next-generation MPLS and ATM solutions," Samhouri added. "DCL ranks among the world's premier suppliers of protocol stack software and provides high-quality products and excellent customer support."

In the first phase of the collaboration, Agere will validate its ATM-based Festino(TM) semiconductor hardware, software and prevalidated system-level platforms--including its worldwide No. 1 traffic management chip technology(2)--with DCL's advanced ATM protocol software. This software includes User-to-Network Interface (UNI), Private Network-to-Network Interface (PNNI), Integrated Local Management Interface (ILMI) and IP over ATM (IPoA).

"DCL is working with Agere on these crucial software projects because of our shared interests in solving our customers' key economic and product delivery concerns," said Ben Miller, vice president of sales and marketing for protocol software with DCL. "Agere's system-level platform approach to the market coincides with major industry trends and plays to Agere's strengths. This strategy also gives DCL's customers an easy upgrade path to the latest Agere multi-service based platforms."

DCL licenses its proven MPLS and ATM software to more than 100 companies, including such major communications networking equipment manufacturers as Alcatel, Cisco, Lucent Technologies and Nortel Networks. Agere's customers for traffic management chips include Calix, Ericsson, Huawei Technologies, LG Electronics, Laurel Networks, Lucent Technologies, NEC, Nokia, Nortel Networks, Siemens and UTStarcom.

About Agere Systems

Agere Systems is a premier provider of advanced integrated circuit solutions for high-density storage, wireless data and multiservice networking applications. The company is the market leader in providing chips for desktop, mobile and consumer electronics hard disk drives. Agere's wireless data portfolio includes industry-leading solutions for data-capable cellular phones, as well as Wi-Fi/802.11 solutions for wireless LANs and computing applications. Agere also provides custom and standard networking solutions to move information across wired, wireless and enterprise networks. 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 http://www.agere.com.

About Data Connection

Data Connection Limited (DCL) develops fully portable software code for ATM, IP and MPLS edge, core and optical networking devices. Its robust software specializes in addressing the demanding requirements of next-generation networks and supports traffic engineering, flexible virtual routing, virtual private routing, Generalized Multi-Protocol Label Switching, and fault tolerant and massively scaled environments. All its products are fully system tested and backed by outstanding support service including direct access to development engineers.

Data Connection is headquartered in London, UK, with U.S. offices in Reston, VA, Alameda, CA, and Dallas, TX. It was founded in 1981 and is privately held. During each of the past 22 years its profits have exceeded 20 percent of revenue. Last year sales exceeded $40 million, of which over 90% were outside the UK, mostly in the US. For more information, see http://www.dataconnection.com.

(1) Ryan Hankin Kent (RHK)

(2) In-Stat/MDR: Agere's network processors feature the company's

robust traffic management capabilities. Agere ranks No.1

worldwide in sales and deployment of merchant traffic

management chips, a market projected to top $500 million in

2007.

Agere is a registered trademark, and Agere Systems, the Agere Systems logo, Festino are trademarks of Agere Systems Inc. Data Connection is a trademark of Data Connection Limited and Data Connection Corporation.