Agere Systems Announces Industry's Lowest-loss Multiplexer/Demultiplexer Component for Optical Networking Systems.

Business Editors/High Tech Writers

AMSTERDAM, The Netherlands--(BUSINESS WIRE)--Oct. 1, 2001

Agere Systems (NYSE: AGR.A), the world leader in communications components, today announced the industry's lowest-loss, thin-film filter-based multiplexer/demultiplexer (MUX/DEMUX) passive component for high-capacity optical networking systems.

This module offers excellent wavelength stability and can reduce power consumption and costs for systems makers and network operators.

Announced here at the European Conference on Optical Communication (ECOC), the MUX/DEMUX, part of the W700-series, is a passive optical component that combines up to 40 wavelengths of light, or channels, into a single optical fiber in a dense-wavelength division multiplexing (DWDM) system. The component can be used alongside optical transmitters to aggregate multiple channels on the "transmit" side, or can precede an optical receiver on the "receive" end to demultiplex signals from an optical fiber. Passive components are used to manipulate the signal and pump light in an optical amplifier without the need for applied current or voltage. This component can be used in metro area, long-haul and submarine network applications.

"Network operators are constantly looking for ways to save on costs associated with running high-capacity optical networks," said Stefan Rochus, director of marketing for Agere's Undersea and Amplification Solutions division. "Agere's MUX/DEMUX component offers the industry's best performance in insertion loss, which means that lower-power transmitters can be used to help reduce the overall power consumption requirements for DWDM systems." Agere's thin-film filters used in the MUX/DEMUX modules exhibit very low, uniform insertion loss (optical power loss) and reflection loss. In a 16-channel system, for example, Agere's modules provide a typical insertion loss of 3.5 dB.

The component can also significantly reduce thermal wavelength drift over temperature. As external temperatures increase or decrease in a fiber network, the center transmission wavelengths can shift when processed through a passive filter, leading to potential signal errors. With Agere's MUX/DEMUX, wavelength shifts are limited to only 0.3 picometers per degree Celsius, which is a factor-of-two improvement over other competing MUX/DEMUX products on the market.

"Thin-film is and will continue to be the dominant technology for MUX/DEMUX components, which is a $750 million market for 2001," said Peter Farmer, director of optical networks at market research firm Strategies Unlimited. "Agere's introduction of passive components broadens its product line considerably and complements its portfolio of active optoelectronic and IC components."

Agere's MUX/DEMUX product is based on internally developed and manufactured optical thin-film filters, which are used to selectively reflect or transmit wavelengths.

The W700 series offers several configurations including multiple channel counts -- 1x4 (four channels per fiber), 1x8, 1x16, 1x20 and 1x40 - as well as channel spacings ranging from 400 to 50 gigahertz. Systems makers also have a choice in selecting either a module-level or rack-mounted solution.

Samples of the MUX/DEMUX W700-series are available now, with production quantities expected in November 2001. The product is on display in Agere's booth (No. 605) at ECOC, being held October 1-3.

For more product information, customers may visit Agere's Web site at http://www.agere.com. Customers in the United States may contact the Agere Systems customer response center at 1-800-372-2447 (in Canada, call 1-800-553-2448; outside of the U.S./Canada, call 1-610-712-4323) or [e-mail]. Written inquiries may be faxed to 1-610-712-4106 or sent to Agere Systems, Room 30L-15PBA, 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(tm) product line. More information about Agere Systems is available from its Web site at http://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, completion of the distribution or sale of Agere stock by Lucent Technologies Inc., customer demand for our products and services, control of costs and expenses, timely completion of employment reductions and other restructuring 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 the prospectus filed by Agere with the Securities and Exchange Commission on March 28, 2001, and Agere's subsequent reports on Form 10-Q. 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.