FREMONT, Calif., and SAN JOSE, Calif. -- Avanex Corporation (Nasdaq: AVNX) a global pioneer of cost-effective, high-performance photonic processing subsystem and module solutions, and Oplink Communications, Inc. (Nasdaq: OPLK) a leading provider of innovative optical modules and components, today jointly announced that they have signed a definitive agreement to combine in a strategic merger of equals. The all-stock transaction, which has been approved by the board of directors of each company, creates a premier provider of optical subsystems, modules and components for communications applications. The combined company, which will be known as Avanex, will be headquartered in Fremont, California. Paul Engle, President and Chief Executive Officer of Avanex, who will be Co-Chairman, President and Chief Executive Officer of the combined company, said: "This transaction is about creating a winning platform for the future. By combining Avanex's leading-edge technology solutions with Oplink's broad range of passive components and low cost manufacturing capabilities, we are creating a new entity that will be a formidable competitor in our industry." Avanex Corp. Oplink Communications Inc.