Bookham Bags $11.9M

Bookham to receive $11.9M from transaction with Deutsche Bank

August 17, 2005

1 Min Read

SAN JOSE, Calif. -- Bookham, Inc. (NasdaqNM:BKHM - News), a leading provider of optical components, modules and subsystems, announced today that it has completed a transaction with Deutsche Bank AG by which certain UK tax losses in Bookham Technology plc, Bookham, Inc.'s UK subsidiary, will be surrendered to reduce UK taxes otherwise due on sub-lease income payable to a former subsidiary of Deutsche Bank. This transaction will result in Bookham Technology plc having available net cash of approximately £6.63 million ($11.9 million USD). The Company plans to use these funds for general corporate purposes, additional working capital and capital expenditures. The transaction is more fully described on a Current Report on Form 8-K filed today with the Securities and Exchange Commission.

Under the terms of the agreement, the Company received £4.2 million ($7.5 million USD) when the transaction closed on August 10, 2005. Additional amounts of £1 million ($1.8 million USD) will be available on October 14, 2005 and July 14, 2006. The remaining balance of approximately £431,000 ($772,438 USD) will be available on July 16, 2007. The US dollar estimates are based on the currency exchange rate as of August 10, 2005 of £1.00 to $1.7922 USD.

"This transaction is a one part of our overall financing plan," said Dr. Giorgio Anania, president and chief executive officer of Bookham, Inc. "We anticipate that the proceeds will strengthen our balance sheet and provide us with the additional capital we need to expand our business."

Bookham Inc.

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