Corning, New York, April 24, 2000 -- Corning Incorporated (NYSE:GLW) announced today that it has reached an agreement toacquire the remaining equity in NZ Applied Technologies Corporation of Woburn, Mass., for up to $150 million in Corning commonstock. As part of the agreement, a significant portion of the purchase price is contingent upon NZAT achieving certain productdevelopment milestones, following the completion of the transaction. Corning had assumed a 20% equity ownership position in thecompany in 1999.

In making the announcement, Corning’s Passive Components Business Director, Jean-Louis Malinge stated, “The rapidly growingdemand for broadband communications services, such as high-speed Internet connections and on-line video, is outstripping thecapacity of communications service providers. To achieve greater functionality, companies are accelerating the deployment ofDense Wavelength Division Multiplexing (DWDM) systems. NZAT is developing a line of high speed, solid-state,OptoCeramic components for DWDM systems, such as variable optical attenuators (VOAs), that will meet industrydemands for speed, quality and reduced size.” According to Malinge, Corning intends to leverage NZAT’s expertise in micro-opticcomponent development to create new products required in photonic networks.

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