JDS Uniphase to buy IBM optical transceiver business

December 19, 2001--JDS Uniphase Corp. (Nasdaq: JDSU and TSE: JDU) has agreed to purchase the optical transceiver business of IBM Corp. IBM's optical data communications products include small form factor (SFF) transceivers and Gigabit Interface Converters (GBIC) for storage area networks and local area networks using optical Fibre Channel and Gigabit Ethernet protocols.

December 19, 2001--JDS Uniphase Corp. (Nasdaq: JDSU and TSE: JDU) has agreed to purchase the optical transceiver business of IBM Corp. IBM's optical data communications products include small-form-factor transceivers and Gigabit Interface Converters (GBIC) for storage-area networks and local-area networks using optical Fibre Channel and Gigabit Ethernet protocols.

The transceiver business, with principal operations in Rochester, MN, would broaden the product lines and markets of JDSU from long-haul telecommunications to very short reach carrier and enterprise applications. In addition, the IBM team would bring expertise in high-speed mixed signal silicon germanium and BiCMOS integrated circuit design as well as enhanced analog, microwave, optoelectronic, and mechanical design resources.

JDSU will pay $340 million in a combination of cash and stock, of which $100 million will be paid in cash. Additional payments of up to $85 million in cash or stock may be made in early calendar 2003 based on the financial performance of the acquired business. Closing of the transaction is subject to customary conditions, including the receipt of government approvals.

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