MARTINSRIED/MUNICH, Germany and RAMSEY, N.J. -- ADVA Optical Networking (German Neuer Markt: ADV), a leading global provider of optical networking solutions, today announced second quarter and six-month 2002 financial results for the period ended June 30, 2002, and prepared in accordance with U.S. General Accepted Accounting Principles ("U.S. GAAP").Revenues in the second quarter 2002 reached EUR 22.3 million, a sequential increase of 3.3% over revenues in the first quarter 2002 of EUR 21.6 million. Pro forma operating income increased from EUR 0.1 million in the first quarter 2002 to EUR 0.2 million in the second quarter 2002, and furthermore improved from a pro forma operating loss of EUR 1.2 million in the second quarter 2001, due to improved gross margins and cost-reduction measures. Pro forma net loss from continuing operations improved from EUR 2.1 million in the second quarter 2001 to EUR 0.2 million in the second quarter 2002.Andreas G. Rutsch, Chief Financial Officer at ADVA Optical Networking ("ADVA"), remarked, "We generated a fifth consecutive quarter of stable revenues between EUR 21 and 25 million, and more importantly, succeeded in dramatically lowering our pro forma operating break-even point during that time period. We furthermore achieved a pro forma operating income of EUR 0.2 million in the second quarter 2002. These are major achievements which have been reached by few other communication equipment companies in recent quarters."Actual net loss from continuing operations in the second quarter 2002 was EUR 1.4 million, compared to EUR 7.9 million in the second quarter 2001. The improvement in actual net loss from continuing operations was primarily the result of improved gross margins and the elimination of goodwill amortization as of January 1, 2002, according to new U.S. GAAP standards. ADVA posted an actual net loss of EUR 3.7 million in the second quarter 2002, compared to EUR 17.4 million in the second quarter 2001. The improvement in actual net loss was primarily a result of the loss in the second quarter 2001 from discontinued operations at the company's Cambridge site. Actual basic net loss per share totalled EUR 0.11 in the second quarter 2002 and EUR 0.54 in the second quarter 2001. ADVA has included charges for stock option compensation in its actual financial results since the Company first issued options in 1999.ADVA anticipates its sixth consecutive quarter of revenues between EUR 20 to 25 million in the third quarter 2002.ADVA AG Optical Networking