OCP sells VCSEL assets

February 13, 2006 Woodland Hills, CA -- Optical Communication Products, Inc. (OCPI) today announced the sale of certain assets located at its Broomfield, Colorado facility related to VCSEL technology, and the grant of a license to use related technology, to Furukawa Electric Co., Ltd., the company's majority stockholder, for total cash consideration of $1 million, in addition to potential royalty payments.

February 13, 2006 Woodland Hills, CA -- Optical Communication Products, Inc. (OCP), a manufacturer of fiber-optic subsystems and modules for metro area, local area, and storage area networks, today announced the sale of certain assets located at its Broomfield, Colorado facility related to VCSEL technology, and the grant of a license to use related technology, to Furukawa Electric Co., Ltd., the company's majority stockholder, for total cash consideration of $1 million, in addition to potential royalty payments.

According to a press release, as previously disclosed, as of January 31, 2006, OCP ceased operations of its Broomfield plant, a research and design facility where the company had been focused on creating VCSEL technology for fiber-optic communication networks. The company said it decided to cease the operation of its Colorado facility because the cost of Fabry-Perot lasers had been decreasing, making 1300-nm VCSEL technology less attractive as a cost-effective replacement, and because of the delay in development of the market for the next generation of optical modules. The company said it had derived immaterial revenues from its operations at the Broomfield facility.

In addition to the sale of assets related to the VCSEL chip operation located at the Broomfield facility, OCP granted Furukawa a non-exclusive, royalty-bearing license to use and exploit intellectual property related to the VCSEL technology. Under the terms of the license, Furukawa would pay OCP a royalty on sales of certain products utilizing the 1300-nm VCSEL chip technology.

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