LG Electronics Deploys Agere Chips

ALLENTOWN, Pa. -- Agere Systems (NYSE: AGR.A, AGR.B) today announced that LG Electronics—one of Korea’s two largest communications equipment manufacturers--has deployed Agere’s asynchronous transfer mode (ATM) traffic management switching chips in its wireless base station and multiservice router equipment.

For LG’s base stations, Agere is providing such ATM chips as its ATM Port Controller (APC) and ASX/ACE. In addition, LG’s multiservice router houses Agere’s APC, Pi-X and Pi-C (Protocol Independent, 10 gigabits per second), and PayloadPlusÒ chips for ATM-based multi-protocol service. LG plans to use in its multiservice routers Agere’s PI-40X and PI-40C (40 gigabits per second) chip solutions, as well as the company’s APP550 single-chip, traffic management network processor solution.

Agere ranks No. 1 worldwide in ATM chip shipments* with nearly 2 million chips shipped to customers worldwide. The company also ranks first worldwide in sales of traffic management chips**.

“To be viable players in the multiservice networking market, chip companies must have extensive ATM and traffic management expertise and a track record for delivering these products in high volumes to customers,” said Steve Rago, analyst with iSuppli. “Agere’s traction with LG Electronics and many other customers demonstrates that the company is strongly positioned for continued leadership in ATM and traffic management chips.”

ATM is a widely deployed communications equipment technology that manages information flow. Traffic management, an ATM function, executes conceptually like a police “traffic cop.” The technology organizes and sets priorities for delivery of voice, data, and video traffic through communications equipment. ATM and traffic management are key functions for existing equipment and next-generation equipment using the emerging Internet Protocol (IP) communications protocol.

“For the next few years, LG Electronics will focus heavily on extracting maximum value and revenues from our existing equipment to meet our current telecom service provider requirements,” said S. H. Park, vice president of LG Electronics. “Agere’s high performance ATM traffic management chip technology enables us to achieve that goal. Looking forward, that same Agere technology will be vital to us as we upgrade to next-generation, multiservice networks featuring ATM, traffic management and Internet Protocol technologies.”

“ATM and traffic management are among those ‘must haves’ in the communications industry for now and several years to come,” said Samir Samhouri, head of marketing with Agere’s Multiservice Networking Division. “We are pleased that our ATM capabilities have enabled us to form this long-term relationship with LG Electronics for current and next-generation equipment. Agere’s chips help LG Electronics reduce their total system costs and accelerate their product deliveries.

LG Electronics Inc.

Agere Systems