EMCORE acquires Corona Optical Systems

July 19, 2004 Somerset, NJ-- EMCORE Corporation, a provider of semiconductor technologies for global communications, has acquired parallel optics supplier Corona Optical Systems (Lombard, IL/Eau Claire, WI) in a cash for stock merger.

July 19, 2004 Somerset, NJ-- EMCORE Corporation, a provider of semiconductor technologies for global communications, has acquired parallel optics supplier Corona Optical Systems (Lombard, IL/Eau Claire, WI) in a cash for stock merger. Corona Optical Systems offers an ultra small-form-factor transceiver which is currently being deployed by Tier 1 customers for use in high density telecom switching boxes.

Per the terms of the transaction, EMCORE acquired Corona's business including, its product lines, intellectual property, manufacturing technology and all physical assets for a cash payment of $1.2 million. In the last twelve months before closing, Corona had revenues of approximately $2.9 million. Approximately 13 employees of Corona Optical Systems will join EMCORE. EMCORE expects that sales of Corona's OptoCube transceiver will exceed $4 million in the next twelve months.

"This acquisition adds an extremely talented design and engineering team and provides ownership of a valuable intellectual property portfolio, including a number of advanced technologies such as a panelized substrate and automated optical alignment techniques, that EMCORE will be able to incorporate into existing EMCORE product families," said Dr. Robert Bryan, vice president of EMCORE. "With the addition of the OptoCube transceiver to our existing parallel optical product family of SNAP-12, QuadLink, and SmartLink transceivers, EMCORE has demonstrated its continued commitment to the parallel optics market. This acquisition further strengthens EMCORE's position as a leader in parallel optics technology. The OptoCube transceiver's ultra small-form-factor design and manufacturing platform are unique, well-suited for high-performance, low-cost, and high-volume manufacturing, and can be used for a range of applications, such as high density optical backplanes, defense, supercomputing, and consumer applications."

"EMCORE is an acknowledged leader in high density optical backplanes and we are excited about joining the team," said Bryan Gregory, founder and chairman of Corona Optical Systems. "We have been a long-time customer of EMCORE's high-performance oxide-based VCSEL arrays and have always been impressed with their products' quality, reliability and performance. This merger allows the Corona team to tap into EMCORE's excellent infrastructure and resources to provide better services to its customer base. I also believe the OptoCube platform together with our strong intellectual property position will enable EMCORE to extend the potential of the OptoCube transceiver beyond the current telecom applications to on-board optics for the military, high definition multimedia interfaces, and board mounted optics for scanning and imaging."

Parallel optical modules utilize an array of multiple-channel VCSEL lasers and detectors to transmit and receive optical signals traveling in multi-mode fibers over a distance up to 300 meters. These small form-factor modules, with 12-channels of parallel transmission, carry an aggregated bandwidth of 40 Gbits/sec. They have been utilized in high-end switching and routing of telecom equipment. EMCORE is a founder of the SNAP12 form factor multisource agreement, and a designer and manufacturer of transceivers, transponders and other communications solutions for several major telecom and datacom equipment suppliers in this emerging market.

EMCORE management will discuss the acquisition further in conjunction with the company's third fiscal quarter of 2004 results.

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