Agere Systems Changes U.S. Sales Channel Model to Forge Closer Relationships With Customers.

Business & Technology Editors

ALLENTOWN, Pa.--(BUSINESS WIRE)--July 9, 2001

Agere Systems (NYSE: AGR.A) today announced that it will streamline its sales operations and rely solely on a direct sales force to better serve all of its U.S. customers by forging closer, more strategic working relationships.

The company's current model is a mix of direct sales force and manufacturing representative companies. It plans to transition to the new model by September 30, 2001.

"Moving to a purely direct sales force will allow us to better understand and address our customers' needs," commented George Holmes, vice president North American OEM Sales for Agere Systems. "We will be able to work closely with them to develop long-term strategic initiatives, which will benefit both Agere and our customers."

Agere currently has relationships with 10 manufacturing representative companies. In some cases they are the sole interface between Agere and its customers. To ensure a minimal impact on its customers, the company will transition to a purely direct sales force over a period of three months. During this period, Agere will add 65 people to its sales team to work with customers currently supported by the manufacturing representative companies.

Agere Systems Inc. is a world leader in semiconductors for communications applications. Agere Systems has the expertise to offer integrated optoelectronics and integrated circuits solutions to help customers reduce the time and expense of developing new communications equipment. The company also provides wireless computer networking solutions through its ORiNOCO 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 those 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., price and product competition, keeping pace with technological change, dependence on new product development, reliance on major customers and suppliers, customer demand for our products and services, availability of manufacturing capacity, components and materials, control of costs and expenses, timely completion of employment reductions and other restructuring activities, general industry and market conditions and growth rates 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 the company's report on Form 10-Q for the quarterly period ended March 31, 2001. 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.