ColorChip Acquires Plant

OR AKIVA, Israel -- ColorChip, a leading manufacturer of glass-based Planer Lightwave Circuit (PLC) chips and modules for fiber optic communications, has acquired Lambda Crossing's plant. The plant - whose operations had ceased about a month ago - together with its equipment, will be used by ColorChip to mass-produce its chips as soon as development has been completed and the company moves to the manufacturing stage.

ColorChip is currently in the process of expanding and shifting its focus from development to mass production. The purchase of this existing, fully equipped plant will afford the company the opportunity to significantly increase its manufacturing capabilities with minimum investment and maximum saving of valuable time.

According to Moshe Price, the company's CEO, "ColorChip sees this acquisition as a one-time opportunity to join the leading suppliers in the area of access systems to the home (Fiber To The Home - FTTx) - a field that has recently experienced rapid acceleration. 'Fiber To The Home' will become the major platform for telecom companies to supply Triple Play services - Video, VoIP, and fast Internet - at speeds of hundreds of megabits per second, to and from the home".

The company will ship its first samples of Meteor II FTTx SOG(TM) Transceivers for optical network terminals (ONT/ONU) to selected customers later this month. The transceiver is based on ColorChip's breakthrough SystemOnGlass(TM) (SOG(TM)) technology. This first-of-its-kind system introduces a mountable glass chip that integrates commercial laser diodes, photodiodes, and a minimum number of other electronic and electro-optic components - using no free space elements whatsoever.

Today, ColorChip ships PLC splitters - based on the company's breakthrough Ion-Exchange process - mainly to the FTTx, CATV, analog and digital PONs markets. These splitters provide today's highest levels of reliability and performance.

ColorChip Inc.