HUAWEI SELECTS AGERE TRAFFIC MANAGEMENT DSLAM SOLUTION.

Agere Systems (NYSE:AGR.A) (NYSE:AGR.B), Allentown, Pa., has announced that Huawei Technologies is using Agere's DSLAM traffic management solution in its high-speed Digital Subscriber Line Access Multiplexer (DSLAM) equipment. Huawei ranks second worldwide in sales of DSL equipment, according to IDC.

"Huawei wants to offer our telecom service provider customers complete DSLAM solutions that enable affordable broadband access and higher revenue- generating capabilities," said Li Jian, vice president of Huawei. "We are pleased to be working with Agere, whose portfolio of DSLAM solutions, particularly those performing traffic management and ATM functions, address those needs better than other chip companies we considered."

Agere is a leading provider of traffic management DSLAM solutions. The company ranks first worldwide in sales of traffic management chips. Agere is also the number one supplier of ATM chips and has shipped nearly 2 million ATM chips worldwide.

Gartner Group estimates that 20 million lines of DSLAM will be added worldwide in 2003. Huawei has installed 5.2 million ports of DSLAM in more than 25 countries and regions throughout the world, including Brazil, China, Hong Kong, Russia, Singapore, Saudi Arabia, Thailand and the United States.

"Huawei has proven to be a major player in the global telecom equipment arena, particularly DSLAMs, and an early adopter of leading technologies for its customers," said Samir Samhouri, general manager with Agere Systems. "Agere and Huawei share a common vision of delivering affordable broadband services, using high-performance quality of service technology, as rapidly as possible. Our relationship will allow us to achieve this primary goal."

Agere Systems is a premier provider of advanced integrated circuit solutions for wireless data, high-density storage and multiservice networking applications. Agere's wireless data portfolio enables seamless network access and Internet connectivity through its GPRS offering for data-capable cellular phones, as well as Wi-Fi/802.11 solutions for wireless LANs and computing applications. The company is the market leader in providing integrated circuits for the hard disk drive market, with number one positions in sales of system-on-a-chip solutions and preamplifiers. Agere also provides custom and standard multiservice networking solutions to move information across wired, wireless and enterprise networks. Agere's customers include the leading PC manufacturers, wireless terminal providers, network equipment suppliers and hard-disk drive providers.

For more information, visit http://www.agere.com or call 610/712-1728.