Corning Closes Fountain Valley Fab

CORNING, N.Y. -- Corning Incorporated (NYSE:GLW) today announced that it will discontinue commercialization of its wavelength switch and wavelength blocker product lines. In conjunction with this decision, the company has announced that it will be closing its Fountain Valley, California facility. As part of its plan to restore profitability in 2003, Corning has determined that it needs to take another step to rationalize product lines and improve the positioning of its photonics technologies business. This decision extends solely to the wavelength blocking and wavelength switching product lines. Corning is working with its customers to resolve pending commercial obligations. The actions associated with this decision are targeted to be complete by mid-year 2003.“Corning pioneered the technical and commercial development of these products. We led the market in volume production, shipping more units than all of our competitors combined in the Wavelength Blocker product line,” said Mark Newhouse, vice president New Products and Development. “However, it has become evident that the current market for these products is smaller and further out than anticipated.”James B. Flaws, Corning’s vice chairman and chief financial officer referenced today’s actions at the company’s annual investor conference in New York on Friday, February 7th. At that time, Flaws said Corning would continue to narrow its photonics product line. Corning anticipates this action will result in pre-tax charges of $20 to $30 million in the company’s first half results.Corning Inc.