Agere Sells Its APP300 with TrueAdvantage(TM) Converged Access Solutions to China's Largest Listed Telecom Equipment Manufacturer ALLENTOWN, Pa., Oct. 24 /PRNewswire-FirstCall/ -- China's largest listed telecom equipment manufacturer* has selected the Agere Systems (NYSE:AGR) APP300 network processor-based family of product offerings for its widely adopted Internet Protocol Digital Subscriber Line Access Multiplexer (DSLAM) platforms. (Logo: http://www.newscom.com/cgi-bin/prnh/20040618/AGERELOGO ) ZTE Corporation (Pink Sheets: ZTCOF) will use Agere's TrueAdvantage(TM) Converged Access Solutions, announced earlier this year, in ZTE's DSL access platforms. These Agere solutions feature the APP300 (Advanced Payload Plus(R)) series of network processors, software, reference designs, software tools and development platforms. In its efforts to address international markets, ZTE, the second largest provider of DSLAM equipment in China, chose to base its offering on the APP300, Agere's fourth-generation network processor, because of the APP300's robust and market-leading** traffic processing capabilities, easy-to-program software architecture, flexible interfaces and high scalability across a broad range of applications. The APP300 makes it possible for companies such as ZTE to offer feature- rich services such as high-definition Internet Protocol Television and Voice Over Internet Protocol, while providing a platform solution that satisfies the stringent price requirements for the Chinese market. Given ZTE's focus on the international market, it is vital that their platforms support a diverse breadth of service provider requirements, which often vary by region or service provider. Furthermore, there are numerous industry standards bodies involved in shaping a dynamic set of sophisticated requirements for triple-play-capable, next-generation access networks. To effectively meet these requirements, a DSLAM line card traffic processor must support a number of key features today, with the ability to easily implement new features as access networks continue to evolve. Some examples include: -- Classifying and Filtering to prevent service theft and denial-of- service attacks -- Controlling Congestion to ensure high-priority traffic does not get dropped -- Prioritizing, Scheduling and Shaping to enable QoS (Quality of Service) -- Multi-casting for video and other broadcast service support -- Modifying, Marking or Inserting Headers for traffic isolation and prioritization By adopting a line card processor such as Agere's APP300, ZTE delivers a future-proof platform that enables a high service velocity. Coupling the powerful APP300 hardware architecture with a highly efficient software programming model ensures ZTE will be able to get to market quickly with standard features while retaining the ability to rapidly implement new or enhanced features and services (service velocity). This will provide DSLAM makers such as ZTE the capability of differentiating themselves in both breadth and depth of features when responding to service provider requests for quotation (RFQs). "ZTE needed to choose a proven network processor platform that offers a flexible, reusable and easily programmable architecture to satisfy the diverse and evolving broadband access market needs," said Maoping He, chief engineer of ZTE's broadband access product. "Agere's APP300 family will allow ZTE to meet challenging cost-per-port targets we are facing while also delivering high-performance solutions that span a wide range of channel capacities and speeds." "ZTE is a leader in China's telecommunications equipment market, and provides a broad portfolio of telecommunications equipment," said Mark Cieri, director of business development for Agere's Telecom Division. "This business relationship encompasses a wide array of opportunities for Agere and we look forward to supporting ZTE's vision of continued leadership in China, as well as accelerating its growth in the international markets. This ZTE design win is another major milestone for Agere in the broadband access market." Agere's TrueAdvantage Wireline DSL Solutions are available for customers today. For more information on Agere's TrueAdvantage Solutions, please visit http://www.agere.com/trueadvantage. 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. *Source: ZTE Corporation ** Source: In-Stat and CIBC World Markets Corp. reports ranked Agere first in worldwide sales of traffic management chips Agere, Agere Systems, the Agere Systems logo and PayloadPlus are registered trademarks and TrueAdvantage is a trademark of Agere Systems Inc. This release contains forward-looking statements based on information currently available to Agere. Agere's actual results could differ materially from the results stated or implied by those forward-looking statements due to a number of risks and uncertainties. These risks and uncertainties include, but are not limited to, our reliance on major customers and suppliers, our ability to keep pace with technological change, our dependence on new product development, price and product competition, availability of manufacturing capacity, customer demand for our products and services, and general industry and market conditions. For a further discussion of these and other risks and uncertainties, see our annual report on Form 10-K for the fiscal year ended September 30, 2004, and our quarterly report on Form 10-Q for the quarter ended June 30, 2005. 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. http://www.newscom.com/cgi-bin/prnh/20040618/AGERELOGO http://photoarchive.ap.org/ DATASOURCE: Agere Systems CONTACT: Charlie Hartley, Agere Systems, +1-610-712-1728, Web site: http://www.agere.com/ http://www.agere.com/trueadvantage

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