Agere Systems Enters Into Licensing Agreement With Path 1.

Business/High Tech Editors

SAN DIEGO--(BUSINESS WIRE)--Jan. 24, 2002

Path 1 Network Technologies Inc. (OTC BB: PNWK; Frankfurt: PNT) announced today that it has entered into an agreement with Agere Systems Inc (NYSE: AGR.A) to provide Ethernet intellectual property cores for use in Agere's networking integrated circuits.

Agere intends to utilize Path 1's Ethernet media access control (MAC) cores in both Agere's standard-product ICs and as a library element in Agere's application-specific integrated circuit (ASIC) offerings.

Path 1 has also agreed to provide engineering services to Agere to assist with the incorporation of its technologies into Agere product lines.

"Path 1's technology is a positive addition to our intellectual property portfolio," said Gene Scuteri, product line director for Agere's Transport Division. "We look forward to working with its talented team of engineers to contribute to our design of new industry-leading networking IC solutions."

"The relationship with this world leader in communications components represents a milestone for Path 1 and validation and distribution of our intellectual property," stated Path 1 CEO Frederick Cary. "We anticipate that Path 1's know-how will be utilized in several products to be developed by Agere."

About Path 1 Network Technologies Inc

Path 1 Network Technologies Inc. (OTC BB: PNWK : Frankfurt: PNT) is the industry's most innovative and successfully trial-tested leader in broadcast quality video over IP technology. From the delivery and distribution of broadcast materials to Video On Demand, Path 1's video infrastructure platforms allow high quality transmissions of point-to-point and multiplexed data over legacy IP systems. Patented technology and unique know-how enable stable and error-free transport of real time video, including broadcast and entertainment content exchanges. Path 1's capabilities have appeal to carrier, broadcast, networking and entertainment companies as well as enterprise and government markets. For additional information please visit www.path1.net or call 877/ONE-PATH (663-7284.)

SAFE HARBOR STATEMENT: This news release contains "forward-looking statements" that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "future", "plan" or "planned, " "will" or "should," "expected," "anticipates," "draft," "eventually," or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that Path 1 may be unable to obtain necessary financing to continue operations and development, acquired businesses that are geographically and culturally distinct may not be able to successfully integrated and Path 1 may be unable to find suitable licensees and strategic allies on suitable terms, and other risks identified in Path 1's annual report on Form 10-K and other filings with the SEC. You should consider these factors in evaluating the forward-looking statement included herein, and not place undue reliance on such statements. The forward-looking statements are made as of the date hereof, and Path 1 undertakes no obligation to update such statements.