Agere Systems to Supply Siemens With Optical Amplifiers for Use in New Dense Wavelength Division Multiplexing System.

Business Editors & High Tech Writers

ASCOT, United Kingdom--(BUSINESS WIRE)--Oct. 1, 2001

Agere Systems (NYSE: AGR.A), the world leader in communications components, today announced a multi-million dollar contract to supply Siemens with next-generation optical amplifiers custom-designed for Siemens' new dense wavelength division multiplexing (DWDM) system TransXpress Infinity MTS2.

Agere's amplifiers will allow Siemens to meet operator demands for cost-efficiency, extended reach and increased bandwidth - with the capability to support terabit transmission, up to 3.2 trillion bits per second (Tbit/s). Agere Systems will exhibit this technology in Booth 605 at ECOC 2001 in Amsterdam, this week.

The Siemens DWDM system, developed by the company's Information and Communication Networks (ICN) group and available now, is built on a flexible, modular open platform that supports terabit transmission. Using Agere's optical amplifiers, the system can transmit up to 160 wavelengths at 10 gigabits per second (Gbits/s), and has the capability to support 320 wavelengths at 10 Gbits/s. The system can also be upgraded to 80 wavelengths at 40 Gbits/s. Siemens is incorporating advanced technology including Raman amplification, enhanced link control and optical add-drop multiplexing.

"We chose Agere because it could meet our challenging design brief, and because of its strong track record in this area," said Jost A. Spielvogel, CEO of Siemens Optical Networks and of Optisphere Networks Inc. "Agere has worked hard to provide us with specialised optical amplifiers for long-haul and ultra-long-haul applications covering the C- and L-Bands, and we are very satisfied with the result."

"This was a natural project for us to take on," said Sohail Khan, executive vice president of Agere's Infrastructure Systems Group. "Agere has a long and successful history in developing high-performance optical amplifier technology for a variety of transport applications, and we have leveraged this expertise to help Siemens bring a very innovative, flexible and scalable DWDM solution to market."

Agere is a longstanding optoelectronics solution provider to Siemens. For the last six years, Siemens has ranked Agere as its "Supplier of the Year" for Optoelectronics components.

Agere is a market leader in the simulation, design and manufacture of optical amplifiers, such as erbium-doped fibre amplifiers (EDFAs) and Raman amplifiers. Over the years, the company has built and applied unique, in-house technologies such as thin-film filters, 14xx nm and 980 nm pump lasers that support its development process.

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.

Siemens Information and Communication Networks Group (ICN) is a leading provider of integrated voice and data networks for enterprises, carriers and service providers. Its comprehensive portfolio comprises, in particular, IP-based convergence solutions, and a full range of products for broadband access, optical transport networks as well as the integration, services and applications business. The Siemens Group thus provides complete solutions from a single source for the infrastructure of the Next Generation Internet, a prerequesite for mobile business. In fiscal year 2000 (year-end 30 September) ICN posted sales of 11.4 billion euro, and earnings before interest and taxes (EBIT) of 692 million euro. ICN employs 53,000 people worldwide. Further information about ICN is available at: http://www.ic.siemens.com/networks

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.

Reader enquiries to:

Debra Bracher, Agere Systems' enquiry centre, Marketpoint Europe, Ltd.

Unit 6, The Western Centre, Western Road, Bracknell, Berkshire RG12 1RW, UK

For product information, please contact:

[phone] (tel)

[phone] (fax)

or [e-mail]