Gemfire and Covega complete merger

FEBRUARY 13, 2008 -- The companies say the combination of their active and passive PLC technologies will provide leading-edge devices for optical telecom and other emerging markets.

FEBRUARY 13, 2008 -- Gemfire Corp. (search for Gemfire) has announced the completion of the merger with Covega Corp. (search for Covega), provider of Indium-Phosphide and Lithium-Niobate components and modules to the telecommunications, industrial, medical, defense, and test and measurement industries.

Covega will become a wholly owned subsidiary and the active component division of Gemfire's Planar Light Circuit (search for PLC) product family. Products from the Covega facility include superluminescent light emitting diodes (SLEDs), Fabry-Perot lasers, tunable laser gain chips, semiconductor optical amplifiers, and Lithium Niobate modulators.

Richard Tompane, president and CEO of Gemfire, highlights the benefit of integrating active and passive wafer-scale architectures. "Through integration of more optical functions into PLCs, it is possible to provide better performance and cost-effective solutions to meet the needs of large system integrators under pressure to deliver solutions capable of supporting the rapid growth in demand for bandwidth," he says. "This world-class team has the best technology and shares our vision of photonic integration."

Joe Dixon, president and CEO of Covega, notes that access to Gemfire's broad customer base and the ability to integrate active devices sets the stage for breakthrough opportunities. "Our advanced technology has provided us with a unique perspective of customer requirements, and now together we have the capability to expand our product portfolio to meet those needs," he contends. "Furthermore, our combined expertise enables us to be a leader in next-generation 40G and beyond, passive optical networks, and other advanced optical network applications."

East Peak Advisors was the exclusive advisor to Covega in the transaction.

Gemfire will exhibit in booth #808 at the upcoming OFC Conference in San Diego, February 25-28, 2008.

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