The information below may help you compute the tax basis for any stock you received in the Agere Systems merger. This information assumes that you know your cost basis in your Agere stock immediately prior to the merger. If you require assistance determining your cost basis in your Agere stock leading up to the merger, please refer to the information at the bottom of this document.

The following information will provide you with some guidance on how to calculate your tax basis:

• For LSI common stock received in exchange for your Agere common stock.
• For any fraction of an LSI share for which you received cash.

The worksheet also will help you calculate the taxable gain or loss for cash you received instead of a fraction of an LSI share. However, the worksheet does not purport to be complete and may not apply in your particular circumstances. For example, if you acquired your shares of Agere through an Agere employee benefit plan, the worksheet may not provide you with all the information you need.

HYPOTHETICAL EXAMPLE
In this example, a stockholder owned 40 shares of Agere common stock with a cost basis of $10 per share. Because the merger exchange ratio was 2.16 shares of LSI common stock for every one share of Agere common stock, the holder received 86 whole shares of LSI, as well as a check for an amount based on the value of .40 of an LSI share.

If you are a registered shareholder who had an Agere stock certificate or held shares in an account with Agere’s transfer agent, Computershare, your fractional share payment was calculated at the rate of $10.44 per full share. If you owned your Agere shares through a bank or broker, check your account statement or contact your bank or broker to see how they handled fractional shares.

TAX BASIS CALCULATION

Note that (7) above is the tax basis of any LSI shares you received in exchange for Agere common stock, to be used in determining any gain or loss recognized in the subsequent sale of your LSI shares.

This worksheet was not intended or written to be used, and cannot be used, for the purpose of avoiding tax penalties. You should seek advice based on your own particular circumstances from an independent tax advisor.

The information in this document represents our understanding of federal income tax laws and regulations, and does not constitute tax advice. It does not purport to be complete or to describe the consequences that may apply to you or particular categories of shareowners. It is being provided as a courtesy to our shareholders. Tax matters are very complicated, and the calculations described above may not be correct in your particular circumstances. You should consult your own tax advisor regarding the particular consequences of the merger or any disposition of LSI shares, including the applicability and effect of any state, local and foreign tax laws.

Additional information for former stockholders of Agere Systems who acquired their Agere shares before the Agere reclassification and reverse stock split in 2005:

For information about tax basis calculations to reflect the Agere reclassification and reverse stock split in 2005, click here.

If you received Agere stock because you owned Lucent or AT&T stock, and you have not already calculated your basis in your Agere stock, you may find the following phone numbers and Internet links helpful:

For information about AT&T tax basis calculations prior to AT&T's spin-off of Lucent, please call 800-351-7221 or click here.

For information about allocating basis between AT&T stock and Lucent stock, please call 888-582-3686 or click here.

Please note that Lucent effected 2-for-1 stock splits on April 1, 1998, and April 1, 1999.

For information about allocating basis between Lucent stock and Avaya stock, please call 866-222-8292 or click here.

For information about allocating basis between Lucent stock and Agere stock, please call 866-243-7347 or click here.

For further information, we suggest you consult your tax advisor.