SUNNYVALE, Calif. -- Alliance Fiber Optic Products, Inc. (Nasdaq:AFOP), an innovative supplier of fiber optic components, subsystems and integrated modules for the optical network equipment market, today announced that it will transfer the listing of its common stock to the Nasdaq SmallCap Market from the Nasdaq National Market. The Company's common stock will be transferred to the Nasdaq SmallCap Market at the commencement of trading on November 8, 2002, and will continue to trade under the symbol AFOP. The Nasdaq SmallCap Market is fully automated, provides real-time trade reporting and is a marketplace for more than 800 companies. With the introduction of the Nasdaq SuperMontage (SM) trading system this year, securities listed on both the Nasdaq National Market and Nasdaq SmallCap Market share a unified, more liquid and transparent order entry system. AFOP elected to seek a transfer to the Nasdaq SmallCap Market as its common stock had not met Nasdaq's $1 per share minimum bid price requirement for continued listing on the National Market. By transferring to the Nasdaq SmallCap Market, AFOP may be afforded extended grace periods in which to satisfy the minimum bid price requirement, potentially until July 10, 2003, provided the Company meets other applicable listing criteria. Furthermore, the Company may be eligible to transfer back to the Nasdaq National Market if its bid price achieves and maintains the $1 per share minimum requirement for 30 consecutive trading days and it has maintained compliance with all other continued listing requirements of the Nasdaq National Market. Other than the $1 minimum bid price, the Company believes that it meets all of the Nasdaq National Market listing requirements. Alliance Fiber Optic Products Inc.