Agere Systems Introduces Industry's First Optical Networking Add-Drop Multiplexer System-On-A-Chip With Virtual Concatenation, Generic Framing Procedure.

Business Editors

ALLENTOWN, Pa.--(BUSINESS WIRE)--Oct. 1, 2001

Agere Systems (NYSE: AGR.A), the world leader in communications components, today announced the industry's first single-chip, low-power, programmable synchronous optical network/synchronous digital hierarchy (SONET/SDH) framer solution for OC-3 to OC-48c optical networks that supports virtual concatenation (VC) and generic framing procedure (GFP) technologies.

The add-drop multiplexer (ADM) system-on-a-chip (SoC) integrates a full cross connect, data engine and pointer processor that now supports the new VC and GFP standards which will help boost performance and lower costs for network equipment manufacturers and service providers.

The SONET infrastructure is the dominant transport medium in today's optical networks. As the proportion of data traffic increases and different protocols are developed for data encapsulation, SONET is evolving to become more efficient and flexible in supporting new transport services. VC and GFP are two new standards which enable generalized mapping of variable length multi-protocol packets and flexible data transport over SONET networks, reducing overall system costs while improving flexibility and efficiency.

Based upon its market-leading TADM042G5 device, Agere's new TADMVC2G5 framer chip is designed for OC-48c multi-protocol and ATM switches, routers, aggregation equipment, dense wavelength division multiplexing (DWDM) equipment, voice gateways, next-generation digital subscriber line access multiplexers (DSLAMs) and 3G wireless infrastructure applications.

Agere Systems is a key technical pioneer and lead participant in establishing the international virtual concatenation standard, resulting in global availability of a technology providing expanded features and capabilities for networks today. Virtual concatenation allows the grouping of any number of STS-1 channels for transporting data streams regardless of the type of data packet being transported, such as Ethernet, Internet protocol (IP), or asynchronous transfer mode (ATM), substantially extending the transport efficiency of existing SONET infrastructure.

GFP allows flexible and efficient adaptation of multiple protocols for transmission over SONET networks. GFP has extremely low overhead requirements and robust frame delineation qualities. As a result, GFP makes it easier for service providers to perform switching tasks, avoiding overhead-intensive flag-based adaptation schemes, such as packet over SONET, used for IP router interconnection over wide area networks (WAN). This simplifies component complexity, lowers chip count and space while reducing equipment size and manufacturing costs.

"With increasing multiple transport protocols, service providers need an efficient method to support them, such as point-to-point protocol (PPP) and high-level data link control (HDLC)," said Brian Schreder, director of marketing, Agere Systems. "Since Agere's TADMVC2G5 chip incorporates GFP and VP, network efficiency can be greatly enhanced.

"For example, transporting a gigabit Ethernet signal over SONET using existing transport structures would result in a 42 percent bandwidth efficiency when using an STS- 48c contiguously concatenated channel. With VC, we can utilize 95 percent of the transport channel for data applications and the remaining six STS-1 channels for voice applications," said Schreder. "In addition, service providers will now have the ability to supply bandwidth to meet specific application transport requirements. Moreover, the service provider's job is now a little easier since the network only requires upgrade at the path terminating endpoints and not at every network node."

Agere's TADMVC2G5 framer device integrates a full pointer processor, an STS-1 granularity cross-connect and a packet-cell data engine with VC and GFP, providing a system-on-chip solution for ADM functionality in PPP or ring optical networks. In addition, the device addresses the merging of time division multiplexing (TDM) and data networks within a single device.

"Agere's latest framer devices are among the industry's most integrated solutions for next-generation multi-protocol networks," said Schreder. "By integrating VC and GFP, Agere's new TADM chip offers a new level of functionality that will boost the efficiency of multi-protocol transport over traditional SONET networks."

"Carriers are looking for a highly integrated product that supports the growth of Ethernet and helps build interoperable networks using their legacy equipment," said Allan Armstrong, director of optical transport semiconductor research at RHK. "Agere's latest framer device provides this type of integration by using features such as virtual concatenation and a built-in STS-1 cross connect which allows gigabit Ethernet to be provisioned on dynamically assigned STS-1 circuits."

The TADMVC2G5 can interface with Agere's SuperMapper(TM) device and ATM port controller (APC(TM)) for full-line port card solutions at multiple rates. All of these devices come with a software device manager that includes device drivers and a generically defined application program interface (API) for easy migration across the company's other chip solutions.

Samples of the TADMVC2G5 are available now. Production volumes will be available by the first quarter of 2002. Unit pricing is US$825 in quantities of 1000. The TADMVC2G5 is available in 600-pin lead ball grid array (LBGA) packaging and operates at 7.5 watts worst case.

For more product information, customers may visit Agere's Web site at http://www.agere.com or contact one of Agere's regional sales offices. Customers in the U.S. may also call the Agere Systems Customer Response Center at 1-800-372-2447 and ask for Dept. A09. Customers in Canada may call 1-800-553-2448. Customers outside those countries may call [phone]. Fax inquiries may be directed to [phone], or email queries to [e-mail]. Written inquiries should be sent to Agere Systems, Room 30L-15P, 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.