Agere Systems Announces XENPAK-compliant 10 Gigabit Ethernet Serial Transceiver for Metropolitan Access Networks.

Business/Technology Editors

ALLENTOWN, Pa.--(BUSINESS WIRE)--Dec. 17, 2001

New device joins other Agere products in providing systems

manufacturers affordable, feature-rich 10 Gigabit Ethernet solutions

Agere Systems (NYSE: AGR.A), the world leader in communications components, today announced a 10 Gigabit Ethernet (GbE) serial transceiver module that reduces the costs of implementing high-volume, high-speed data transport in metropolitan access networks (MANs).

The device gives optical network systems manufacturers an integrated, feature-rich, small-form-factor solution that is fully compliant with the XENPAK multi-source agreement (MSA) for 10 GbE products.

With Agere's XENPAK transceiver, systems makers get the cost-saving benefits of an integrated product that can send and receive data, perform optical-to-electrical and electrical-to-optical conversions, and deliver network management features such as an adaptable power supply and a programmable link alarm status.

"As the capital expenditure budgets of network service providers continue to decline, Agere's focus on developing affordable, integrated products will help systems makers deliver cost-effective data transport solutions," said Samir Samhouri, director of marketing for Agere's Transport division. "Agere's transceiver serves the 10 Gigabit Ethernet applications most likely to be implemented first by service providers - short-range metro applications in the backbone of an Ethernet network, such as access between a campus and a transport network point-of-presence."

This new transceiver product is optimized for transmission across 10 kilometers (km) of single-mode fiber, a link length that holds some of the biggest market potential for 10 GbE in metro-access networks. Agere is scheduled to begin shipping sample quantities in January 2002.

This device joins Agere's recently announced multi-function 10 GbE physical layer (PHY) IC (TETH0110G) - which converts 10 gigabit-per-second serial data into four 3.125 Gbit/s serial lanes via the 10 gigabit attachment unit interface (XAUI) -- and Agere's programmable line interface and backplane transceiver chips (ORLI10G and ORT82G5) to help speed the implementation of 10 Gigabit Ethernet applications into areas traditionally served by Synchronous Optical Networking (SONET/SDH)-based OC-192 networks.

"As Ethernet becomes faster and SONET becomes less costly and more versatile for data traffic, the two protocols are evolving as viable solutions for metro access-based applications," Samhouri remarked. "Agere has the industry's broadest range of 10 gigabit-per-second communication ICs, optical components and sub-assembly products with the capability to support both SONET and 10 Gigabit Ethernet protocols for efficient data transport."

Using Agere's optoelectronic component expertise in uncooled 1310 nanometer (nm) laser technology as a foundation, Agere's XENPAK LAN-PHY transceiver can multiplex data in a 10 gigabit XAUI format (four 3.125 Gbit/s electrical data lines) to one serial 10 Gbit/s optical output on the transmit side, and make the conversion from optical to electrical on the receive side. The XENPAK MSA was co-founded by Agere in March 2001 and represents the most widely-adopted industry standard for 10 GbE, with more than 25 member companies agreeing that their transceiver product designs will conform to the proposed IEEE 802.3ae 10 GbE specification.

Jitter control is a critical parameter in transponder performance, where the ability to do optical/electrical or electrical/optical conversions is predicated on how "clean" the signal is. Agere's new transceiver makes use of technology developed for Agere's TB64 transponder, which has shown superior jitter performance and excellent wide-open eye patterns, resulting in high-quality transmissions over the entire optical span.

Agere's transceiver implements the XENPAK adaptable power supply scheme, which allows a system line card to sense the exact voltage required by a particular XENPAK transceiver and supply any corresponding voltage between 0.9 and 1.8 volts. This feature will enable equipment makers to use new, lower power transceivers as they become available, while maintaining backward compatibility. The transceiver's programmable link alarm status improves monitoring by providing a single interrupt signal to alert the user of potential problems on the link. The device is compact, front-panel-pluggable, and uses an industry-standard 70-pin electrical connector and SC duplex fiber optic connector.

Sample quantities of Agere's new transceiver, called the AE20LRCAA, will be available in January 2002, with production quantities expected in the third calendar quarter of 2002. Pricing for the transceivers will approach the $1000 range in 2003, once high-volume production levels are reached.

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 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.