HILLSBORO, Ore. and ALLENTOWN, Pa. -- TriQuint Semiconductor, Inc. (Nasdaq: TQNT) and Agere Systems (NYSE: AGR.A, AGR.B) today announced TriQuint will acquire a substantial portion of Agere's optoelectronics business for $40 million in cash. The transaction includes the products, technology and some facilities related to Agere's optoelectronics business, which includes lasers, detectors, modulators, passive components, arrayed waveguide-based components, amplifiers, transmitters, receivers, transceivers, transponders, and MEMS (micro electro- mechanical systems). The agreement does not include Agere's business providing optoelectronics components for CATV (cable television) transmission systems, based in Alhambra and Irwindale, Calif. Agere is continuing to pursue a buyer for that business. For Agere's fiscal year ended September 30, 2002, the business TriQuint is acquiring had revenue of approximately $192 million. Agere announced in August 2002 it was seeking a buyer for all or parts of this business, and exiting the optoelectronics business as part of its corporate restructuring. TriQuint estimates this business will have revenue somewhere between $50 and $75 million for calendar year 2003 and is projecting that it will be accretive to earnings per share by the fourth quarter of 2003. As part of the deal, approximately 300 Agere research and development, process engineering, marketing, product management and assembly and test employees will join TriQuint. The companies anticipate closing the sale in early January 2003, subject to regulatory approval and other customary closing conditions. Commenting on the transaction, Ralph G. Quinsey, President and CEO of TriQuint stated, "I am delighted that we have been able to reach agreement with Agere to acquire this business. It's a natural fit for TriQuint as we have been involved in the design and production of integrated circuits and products for the optical networking business for over 15 years, and it is a core part of our company. This acquisition makes us one of the world's leading suppliers of optical modules and components. Clearly the market has been under a lot of pressure over the past two years, but we believe that this acquisition will position us for substantial revenue growth and profits when this market recovers. The consolidation of the operations and the restructured workforce will greatly reduce our costs compared to Agere's previous experience. We are extremely excited about this opportunity." TriQuint Semiconductor Inc. Agere Systems