Agere Systems Announces Industry's Lowest-Voltage, Highest Bandwidth 40 Gigabit-Per-Second Modulator for Optical Networks

Business Wire, May 29, 2001

Business Editors

ALLENTOWN, Pa.--(BUSINESS WIRE)--May 29, 2001

Agere Systems (NYSE: AGR.A) today announced the industry's lowest-voltage, highest-bandwidth lithium niobate modulator for use in 40 gigabit-per-second (Gbit/s) optical networking systems. With this component, systems makers can more economically design a system that delivers error-free, highly accurate performance.

The device requires only a 2.5 volt drive (referenced at 1 gigahertz) and has a guaranteed minimum bandwidth of 30 gigahertz. Called the 2625C, the device converts steady, or continuous wave (CW), laser output into high-speed light pulses that transmit voice, data and video signals over fiber optic cables. Modulators are placed externally to the CW laser source in an optical networking system.

Agere's modulator represents a major performance improvement in 40 Gbit/s technology. Drive voltage is one of the most critical parameters in high-speed modulator performance, and is required to switch the device from "full on" to maximum attenuation, or "off." The combination of high speeds and peak-to-peak voltage swings typically makes it difficult for external drive electronics to effectively manage signal transmissions at low voltages. With Agere's solution, systems manufacturers can reduce the voltage requirement for modulator drivers while extracting the maximum bandwidth from the modulator.

Unlike other low-voltage offerings that operate with bandwidths of less than 30 Ghz, Agere's modulator ensures better eye patterns and lower bit-rate errors, contributing to a more robust system design.

"The tradeoff in reducing the required drive voltage is usually lower bandwidth, but Agere has achieved this power reduction without affecting bandwidth or cost," said Ken Newton, senior product manager at Agere Systems. "Agere's modulator exhibits none of the signal degradation problems that plague lower-bandwidth products."

The modulator uses a "push-pull" configuration that permits chirp tunability, allowing systems manufacturers to optimize the device to their unique system requirements. Agere's expertise in lithium niobate technology -- which ensures fast switching speeds and stable performance -- will allow the company to manufacture the modulators in high volume.

"Agere has a long history in developing and manufacturing high-speed lithium niobate modulators," said Newton. "We've shipped more 10-gigabit modulators than any other company."

The new 40 Gbit/s modulator is suitable for dense wavelength-division multiplexed systems used in high-speed or short-range digital networks operating up to SONET OC-768 and SDH STM-256 rates.

Agere is currently sampling the 2625C, and expects to deliver production quantities by the fourth calendar quarter of 2001. Unit pricing will be less than US$10,000 in volume quantities. Photo available upon request.

Agere Systems Inc., formerly the Microelectronics Group of Lucent Technologies, is the world leader in semiconductors for communications applications. Lucent has announced it intends to spin off Agere Systems as an independent company. Agere Systems offers integrated optoelectronics and integrated circuits solutions to help customers reduce the time and expense of developing new communications equipment. It also provides wireless computer networking solutions through its ORiNOCO product line. More information about Agere Systems is available from its Web site at http://www.agere.com.

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 those 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 of Agere stock by Lucent Technologies Inc., price and product competition, keeping pace with technological change, dependence on new product development, reliance on major customers and suppliers, customer demand for our products and services, availability of manufacturing capacity, components and materials, control of costs and expenses, general industry and market conditions and growth rates 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. 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.