Agere Systems Announces Breakthrough Technology That Improves Connectivity and Call Quality for HSDPA-Based Mobile Phones


Company's enhanced receiver technology increases cell phone range by up to 25 percent and reduces bill of material costs by more than $6 over competing technologies

ALLENTOWN, Pa., April 5 -- Agere Systems (NYSE:AGR) today announced it is making breakthrough receiver technology available that significantly improves data connectivity and call quality for mobile handsets operating over HSDPA-capable 3G/W-CDMA networks. Cell phones equipped with Agere's new enhanced receiver will experience fewer dropped calls, improve transmission range in poor call conditions by as much as 25 percent, and provide network operators with the advantage of extended cell capacities. In addition, Agere's technology enables a reduction in cell phone bill of material costs of more than $6 for mass market handsets in comparison to other receiver technologies.

The continued growth in mobile phone usage worldwide is challenging operators to ensure that networks are optimized for a more pleasing user experience as the world moves to higher capacity 3G networks. To combat the signal degradation that is often experienced as users travel further away from cell towers or when vast numbers of users are connected to a network, Agere has developed its receiver solutions to enable stronger performance under these strained conditions. Agere's enhanced receiver technology boosts 3G mobile handset range by up to 25 percent without adding to the cost and size of the phone.

"We are focused on delivering practical and easy-to-implement solutions that enable our customers to quickly develop higher performing products that cost less to build," said Denis Regimbal, executive vice president of Agere's Mobility Division. "This emphasis will be the key factor in driving reasonably priced 3G phones capable of delivering turbocharged performance right into the mainstream heart of this market."

Provides performance boosts without adding to bill of material costs

Agere's enhanced receiver technology provides an up to 3dB improvement in signal-to-noise ratio performance by filtering out background noise and reducing transmission power. Agere's solution employs receiver signal processing techniques that exceed the industry specification for 3GPP R5 receivers to offer performance that is nearly parallel to R6 receivers in most network conditions.

Alternatively, other solution providers are turning to receiver diversity methods or multiple receivers that sacrifice power consumption and add costly antennas and radio frequency (RF) chips for higher throughput performance in handsets. Agere's solution is an adaptive multi-path receiver that filters out background interference and reduces transmission power requirements for clearer voice calls without adding costly additional components.

Programmability provides flexibility as standards evolve

As part of Agere's programmable ModemArt(TM) processor, Agere's enhanced HSDPA receiver technology is another proof-point for the flexibility needed in an environment where technical standards are evolving. Because Agere's processor enables rapid implementation of technical updates using software and firmware, handset makers can quickly change their solutions without incurring expenses associated with revamping silicon. This software and firmware programmability also brings flexibility as receiver technology is upgraded in line with industry standards.

Agere's enhanced HSDPA receiver is the first in a family of high- performance receivers that Agere will provide in conjunction with its deployment of a range of upcoming baseband chipset solutions. The company plans to offer future HSDPA chipset and receiver solutions that further optimize system size and cost for the mainstream segments of the market. Among the solutions Agere plans to offer for higher performance services are Category 8 (7.2 Mbps HSDPA), Category 4 (2.9 Mbps HSUPA) and Multimedia Broadcast Multicast Service (MBMS) products.

Performance helps operators effortlessly extend network capacity

Agere's receiver technology also provides benefits that extend beyond the handset. The technology delivers key wireless network efficiencies that are seamless for network operators. By enabling more cell phone users to be within the same frequency without impacting the connections that mobile phones can achieve, Agere's technology transparently expands network capacity without requiring any operator effort. Infrastructure providers and operators receive the added benefit of expanded cell capacities that materialize as phones' transmission rates and ranges improve.

As a result, each base station can support one-third more users than is typical, which means fewer cell towers are required on the network and the distance between each tower can be increased without impacting call quality or range of coverage for end users. Ultimately, phones equipped with this receiver technology can lead to very compelling cost efficiencies for network operators.
Agere expects to sample its enhanced receiver technology with key customers in the second half of 2006.

About Agere's Mobile Handset Chipset Solutions

Agere offers a full portfolio of 3G and 2.5G/EDGE solutions based on its Sceptre® and Vision(TM) mobile handset architectures. Agere's current 3G offering combines W-CDMA and EDGE technology in an integrated chipset and software solution for mass market mobile products that enable seamless handovers between 3G and 2.5G/EDGE networks. Its EDGE offerings are some of the industry's most integrated Class 12 capable chipsets providing a range of advanced multimedia features. Agere completes its chipset solutions by combining them with its OptiVerse(TM) software frameworks, which are critical for easing development and enabling time-to-market benefits for designers. Agere's solutions are optimized for the size and low power consumption that consumers expect for mobile devices.

About Agere Systems

Agere Systems is a global leader in semiconductors for storage, wireless data, and public and enterprise networks. The company's chips and software power a broad range of computing and communications applications, from cell phones, PCs, PDAs, hard disk drives and gaming devices to the world's most sophisticated wireless and wireline networks. Agere's customers include top manufacturers of consumer electronics, communications and computing equipment. Agere's products connect people to information and entertainment at home, at work and on the road -- enabling the connected lifestyle.

For more information, customers may visit Agere's Web site at 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. Customers in Canada may call 1-800-553-2448. Customers outside those countries may call 1-610-712-4323. Fax inquiries may be directed to 1-610-712-4106, or e-mail queries to docmaster@agere.com. Written inquiries should be sent to Agere Systems, Room 10A-301C, 1110 American Parkway NE, Lehigh Valley Central Campus, Allentown, PA, 18109, USA.

Source: Agere Systems

CONTACT: JoAnna Schooler, +1-610-712-1746, +1-908-283-4060 (mobile),
jschooler@agere.com, or Glen Haley, +1-610-712-1747, +1-610-217-0781 (mobile),
glenhaley@agere.com, both of Agere Systems

Web site: www.agere.com/

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