Bookham Technology plc streamlines manufacturing operations

July 3, 2002--Bookham Technology plc today announced it will concentrate its worldwide production in two out of its current four facilities: manufacturing ASOC components at its Milton facility and active components at its Caswell site.

Taking advantage of its acquisition of Marconi's optical component business earlier this year, Bookham Technology plc today announced it will concentrate its worldwide production in two out of its current four facilities: manufacturing ASOC components at its Milton facility and active components at its Caswell site.

Through an ongoing process efficiency program, the company believes that it can now handle component production rates of £ 200 million ($306 million) at Milton and similar levels at Caswell, permitting it to close its other two facilities in Maryland, US and Swindon, UK. The company believes that these closures will reduce costs without adverse impact on manufacturing capacity or on future sales ramp-up.

The company estimates that its ongoing broader cost reduction efforts, of which the facilities realignment is an important part, will reduce its quarterly cash burn rate to between £ 10 million and £ 12 million ($15 million and $18 million), excluding restructuring costs, in the fourth quarter 2002. Following the completion of this cost reduction program, the company expects to incur exceptional charges of £ 8 million to £ 12 million ($12 million to $18 million).

For more information about Bookham Technology (Oxfordshire, UK), visit the company's Web site at www.bookham.com.

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