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Agere's BluOnyx™ Mobile Content Server Enables Users to Share Music, Pictures, Video Between Cell Phones, Digital Cameras, GameboxES and PC

ALLENTOWN, Pa. (Vocus) December 18, 2006 -- Agere Systems (NYSE: AGR) today introduced a new product category, the Mobile Content Server, that un-tethers users from the PC and stationary storage devices. By putting control of sharing digital content where it belongs - in the hands of the consumer - the BluOnyx™ mobile content server brings unprecedented connectivity, processing and storage capability for consumers to access, back up and share their digital content whenever and wherever they want in peer-to-peer mode or over the Internet.

One major limitation of existing portable consumer electronics is that they are single function and PC-centric. They represent a class of "i"-"everything" devices in a closed system that does not allow easy interaction with other ecosystems and consumer devices. The BluOnyx server enhances and transforms the consumer's experience from "i" to "we," unconstrained by location or device incompatibilities.

Agere will be demonstrating preliminary versions of its BluOnyx server by appointment at the Consumer Electronics Show January 8-11, 2007 at Booth 68526, Sands Expo and Convention Center in Las Vegas.

The BluOnyx server is about the size of a credit card and for the first time enables mobile users to share and stream music, video and business files to or from electronic devices ranging from cell phones, PCs, digital cameras, game machines, DSL routers and many more. The BluOnyx server is a peer-to-peer device that does not require a PC for its operations but can move content to and from a PC using USB® and wireless connectivity. This capability will finally make a PC just another consumer device instead of the center of the digital universe.

Devices can connect to the BluOnyx server wirelessly through Bluetooth® and Wi-Fi® connections or using USB cables or SD cards. The BluOnyx server can be accessed directly or through a home or corporate network where it is seen as a drive letter for easy transfer of content in familiar operating system settings. The amount of storage on the BluOnyx server will range from 1 Gigabyte to 40 Gigabytes.

The BluOnyx server has a sleek screen-free look and is controlled via its owner's cell phone. Instead of being limited to its own display like many existing products, its contents can be displayed on a cell phone, PC or TV. The BluOnyx server ends consumers' inability to transfer files between different electronic devices and removes the limitations on the choice of displays for content it holds.

With the BluOnyx server, consumers will be able to do the following easily and quickly:
•    Wirelessly access and display personal content carried on the BluOnyx server.
•    Create a Digital Campfire™, broadcasting and sharing content with multiple friends, gathered around a table, authorized to access the BluOnyx server through their cell phones.
•    Stream videos to one or more cell phones.
•    Back up pictures, music, video, emails, personal and business documents and images from cell phones, cameras and PCs.
•    Enable access to the Internet for cell phones and PDAs that are not broadband enabled and cannot access the Internet on their own.
•    Protect content via multiple tiers of authentication and encryption.

Agere currently is in discussions with consumer electronic device makers and cell phone service providers regarding manufacturing and private labeling unique products based on the BluOnyx server system and industrial design.

Rudiger Stroh, Executive Vice President and General Manager of Agere's Storage Division, said: "The BluOnyx server establishes Agere Systems as a thought leader focused on what matters to consumers: mobility, choice of display, a plethora of connectivity options and useful applications. We are talking to some of the leading brand names in consumer electronics to bring this product to many market segments."

With dimensions of 90 mm long by 60 mm wide and between 6 mm and 15 mm thick (depending on memory capacity), the BluOnyx server easily slips into a shirt pocket or purse and features its own rechargeable battery that lasts up to 12 hours without recharging. The 40 Gigabyte version of the BluOnyx server weighs about 140 grams, or about half of the weight of the typical smart phone handheld device.

In addition to developing the system and the software for the BluOnyx server, Agere makes key semiconductor chips in the device and is encouraging third parties to build hardware and software on this open platform.

Nik Bahram, Vice President of Strategic Marketing at Agere's Storage Division and the lead for the BluOnyx server product line, said: "The BluOnyx server opens up an entirely new world that will no longer be PC-centric or limited to one company's closed version of an entertainment device. It truly deserves to be called a breakthrough as it brings a newfound freedom to consumers through an open platform. Users can have their content with them, exchange content between their various mobile and stationary devices and share their private content with friends in social settings.

"Not to be outdone, the savvy business person looking for a highly mobile and valuable addition to their business tools will see the BluOnyx server as a must-have for quick access, sharing and presentation of their content on a number of displays with or without a PC," added Bahram.
The retail price of the BluOnyx server is expected to range from $99 to $250 depending on memory capacity. For more information and for expressing your views on our BluBlog™, visit the BluOnyx server website at www.BluOnyx.com or the Agere website at www.agere.com.

About Agere Systems
Agere Systems is a global leader in semiconductors and software solutions for storage, mobility and networking markets. The company's products enable a broad range of services and capabilities, from cell phones, PCs and hard disk drives to the world's most sophisticated wireless and wire line networks. Agere's customers include top manufacturers of consumer electronics and communications and computing equipment. Agere works to transform the performance of networks and consumer electronics by integrating systems knowledge and leading technology that enable people to stay connected -- perfecting the connected lifestyle.

Agere, Agere Systems and the Agere Systems logo are registered trademarks and BluOnyx, Digital Campfire and BluBlog are trademarks of Agere Systems Inc.

USB is a registered trademark of USB Corporation.
The Bluetooth word mark is owned by the Bluetooth SIG, Inc.
Wi-Fi is a registered trademark of the Wi-Fi Alliance.

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, 2006. 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.

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