$150 Million Agreement - GPRS Mobile Phones

$150 Million Agreement - GPRS Mobile Phones

Agere Systems announced an agreement with Samsung to supply wireless data chipsets and software for use in Samsung's new generation of advanced mobile phones. With this supply agreement, valued at more than $150 million over 12 months, Samsung phones will incorporate Agere's Global Packet Radio System (GPRS) solution.

Inset is the Samsung SGH-S300 Class 8 GPRS Mobile.

Samsung's GPRS-enhanced phones offer features that meet the demands of today's highly sophisticated mobile users, including high-speed Internet access, digital photo imaging, video downloading, high-resolution color LCD displays, polyphonic sound, and Java-enabled video games. Samsung, ranked No. 3 in global mobile phone sales*, is currently deploying these new phones worldwide.

"The combination of Agere's system-level expertise with Samsung's leadership in handset design, display technology and multi-function integration has produced the most versatile mobile phones available for consumers today," said Cho Byung-Duck, Senior Vice President, Samsung Electronics. Samsung recently recognized Agere with its Best Supplier Award for 2002.

GPRS cell phones are based on the Global System for Mobile (GSM) communications standard, which is used in nearly 70 percent of the world's cell phones. Called 2.5-generation (2.5G) technology, GPRS is a global technology that enables the widespread adoption of advanced mobile data services, with the potential to generate new revenue streams for wireless operators.

"We are extremely pleased to have the opportunity to work with the rising star in the mobile phone industry," said Luc Seraphin, vice president of Agere's Mobile Terminals division. "Our GPRS chipset and software solution provides a flexible platform that Samsung can easily adapt to create innovative, next-generation features that differentiate their phones in a highly competitive market. Agere has enjoyed a long and productive relationship with Samsung in developing mobile terminal products, and we are honored to receive its Best Supplier Award for 2002."

Samsung is offering high-performance, fully featured Class 8 GPRS mobile phone handsets that can receive data at up to 50 kilobits per second. Samsung's SGH-S200 and SGH-S300 phones feature compact size, tri-band capability, 40-tone polyphonic sound, high-resolution displays, short messaging capability and sleek designs. The SGH-V205 phones add a built-in digital camera and offer multimedia messaging service (MMS) for uploading and downloading photos.

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