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AGERE SYSTEMS EXITS THE USB 2.0 CHIP MARKET 

Agere, (formerly Lucent, formerly Ma Bell), abandons development of its USB 2.0 host controller dubbed USS-2000.  Company representatives said that all development efforts will go into the aggressive development of IEEE 1394b (Firewire on steroids).  IEEE 1394, commonly known as Firewire, is a high speed connectivity standard developed by Apple Computer and adopted in 1995.  Videophiles world-wide have long embraced IEEE 1394, a hardware and software standard for transporting data at 100, 200, or 400 Mbps.  IEEE 1394b will initially double the existing Firewire maximum bandwidth to 800 Mbps.  Future upgrades will see bandwidth increases up to an amazing 3.2 Gbps.  Unfortunately, the high cost of Firewire peripherals has kept the standard from gaining mass acceptance.

While Lucent was out buying, selling and changing identities, NEC captured the USB 2.0 host controller market. Virtually all brands of USB2.0/PCI cards are using the NEC PD720100 chipset.  

Agere's decision to abandon High Speed USB leaves the market to NEC and Philips.

Read the Agere press release below.

1394b More Information

Stephen Roberts

USBMan

 

News Release

Contact:
Charlie Hartley
Agere Systems
908-508-8226
cjhartley@agere.com

Sam Baxter
Agere Systems
908-508-8225
sambaxter@agere.com



FOR RELEASE: MONDAY, JULY 16, 2001

ALLENTOWN, Pa. -- Agere Systems (NYSE: AGR.A) today announced the discontinuation of discrete products that support Universal Serial Bus (USB) 2.0 applications, including the USS-2000 host controller and USS2X1 transceiver chips.

In addition, Agere announced it will accelerate its product development for1394b applications.

USB technology is targeted at replacing the ports on PCs with a single interface.   The currently deployed USB standard is known as USB 1.1, with USB 2.0 products mainly in development stages.  The 1394 technology enables high bandwidth multimedia at high transmission rates over longer distances connecting a cross section of communication devices.  The currently deployed 1394 standard is known as 1394a with higher speed 1394b products under development.

"These announcements are a clear indication of Agere's sharpening focus on accelerating the multiple benefits of 1394b technology to our customers," said Jack Keller, general manager of the computer products business unit of Agere Systems.  "This 1394 product decision is an example of Agere re-directing its product development efforts to the company's most promising market opportunities."

The 1394b development allows Agere to leverage networking and system integration expertise that the company has developed as an optoelectronics and semiconductor communications leader.

The company plans to continue offering its USB 1.1 and 1394a products.

Agere Systems Inc. is a world leader in semiconductors for communications applications.  Agere Systems has the expertise to offer integrated optoelectronics and integrated circuits solutions to help customers reduce the time and expense of developing new communications equipment.  The company 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.


Agere Safe Harbor Statement

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, timely completion of employment reductions and other restructuring activities, 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, and the company's report on Form 10-Q for the quarterly period ended March 31, 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.



USBMan

7/15/2001

 

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