Sorrento Networks completes financing agreement

Aug. 3, 2001--The investment provides required capital for Sorrento's products in the metro and regional markets.

Sorrento Networks Corporation (Nasdaq NM: FIBR), a provider of metro and regional optical networking solutions, announced it has issued approximately $32 million of senior convertible debentures to a group of institutional investors. The investment allows for the conversion of debentures into, and exercise of associated warrants for, the company's common stock at a premium to the Company's closing stock price on August 1, 2001.

The investment-banking firm, SG Cowen Securities Corporation, assisted the Company in raising the financing from a syndicate of several institutional investors. A portion of the financing may be subject to regulatory and other approvals.

The investment provides required capital for Sorrento's products in the metro and regional markets. Sorrento Networks supplies optical networking solutions to a broad range of customers including, incumbent telecommunications service providers (Deutsche Telekom, Belgacom), cable and multi-service operators (Cox Communications, AT&T Broadband, United Pan-Europe Communications), and "utility-comms" (Edison Carrier Services, El Paso Global Networks).

About Sorrento:

Sorrento Networks, headquartered in San Diego, is a supplier of end-to-end, intelligent optical networking solutions for metro and regional applications worldwide. For more information, visit www.sorrentonet.com.

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