Arasor Acquires Lightbit, IOA

FREMONT, Calif. -- Arasor Corporation, a developer and manufacturer of communications integrated circuits, components, and subsystems that collectively revolutionize wired and wireless communications, announced today that it has acquired Lightbit Corporation. Lightbit, an optical telecommunications subsystem provider, manufactures purely optical processors that reduce the system cost for handling multiple channels over optical fiber networks. In addition, the company produces a line of lasers employed in color copiers and optical chips that sell to the biotechnology industry. As part of its agreement with Lightbit, Arasor has also acquired Intelligent Optical Amplifier (IOA), which makes next-generation amplifiers. The acquisitions were completed in exchange for an undisclosed amount of cash and preferred stock.

"Lightbit and IOA give Arasor a number of strategic benefits," said Simon Cao, PhD, founder and CEO of Arasor. "First, Arasor and Lightbit both leverage Arasor's revolutionary 3D wafer processing and packaging platform, creating strong synergies and efficiencies. While Arasor strengths include signal processing, wireless, and broadband access components, Lightbit's focus is on switching and routing, using dynamic wavelength conversion to provide flexibility in wavelength connectivity. Second, with Lightbit and IOA we can expand our product line with intelligent optical routers, amplifiers, and industrial lasers. These acquisitions are a strong validation of Arasor's strategy to leverage a common technology platform to address multiple market segments."

"The combination of Arasor and Lightbit technologies creates a powerful new class of products that harness the power of photonic integrated circuits to deliver exceptional value to communications customers," said Larry Marshall, PhD, CEO of Lightbit. "This overwhelming synergy enabled Arasor to craft a purchase agreement that beat out competitive bids from several other companies. Simon has a powerful vision and the means to propel Arasor to great commercial success."

Marshall will become a member of Arasor's board of directors, where he will help leverage Arasor's technology into products that extend beyond telecommunications. In addition to Lightbit, Marshall has founded four successful photonics startups during the past 16 years, including Iridex Corporation, which went public on the NASDAQ (Nasdaq:IRIX).

Arasor will retain the existing Lightbit and IOA teams and Lightbit's optical fabrication facility, and will consolidate at Lightbit's headquarters in Mountain View, Calif.

Arasor adds to management team

Arasor also announced today that it has added three executives to its management team. "Arasor is expanding sales, marketing, and business development in the U.S. and China as well as our development and production capabilities in China," said Cao. "Our three new team members are well-known in the field of communications and bring a wealth of experience that will benefit Arasor as it moves into a period of sustained growth."

Charles Mao, PhD, has been appointed president and vice-chairman of the Board of Directors. Dr. Mao adds expanded leadership to Arasor and will focus on sales and marketing to increase the company's share in the dynamic worldwide market for wired and wireless communications. A member of the founding team for Avanex Corporation, Mao was the company's senior vice president of sales and marketing and helped launch the Avanex IPO.

Jessy Chao is Arasor's new senior vice president of business development. He was formerly founder and CFO of Avanex Corporation. Earlier in his career, Chao was head of accounting and finance at E-TEK Dynamics, Inc.

Aibing Gong is now vice president of China operations for Arasor. He brings to his new position 21 years of experience in opto-electronics packaging and high-volume manufacturing development. Gong was formerly general manager of Lasertron-Shanghai, where he oversaw all aspects of operations from initial setup to full product deliveries.

In a separate release:

Arasor Corporation announced today that it has entered into multi-year joint venture (JV) agreement valued at $175 million with Nansha High Technology Investment Ltd., the investment arm of the Guangzhou government, to build a 200,000 sq. ft. facility in the municipality's new Nansha IT Park. Arasor, a developer and manufacturer of communications integrated circuits, components, and subsystems that collectively revolutionize wired and wireless communications, will use the facility for R&D, production, testing, and customer support. The company will move from its current 25,000 sq. ft. facility to the new facility in Q4 2004.

"The support of the Guangzhou government gives us a major advantage in building a world-class component and subsystem powerhouse," said Simon Cao, PhD, founder and CEO of Arasor. "The Nansha location places us near many of the members of the Greater China Photonic Solutions (GCPS) consortium, allowing us easy access to high-quality, Chinese-made materials and supplies at low prices. The consortium integrates the sales and customer support process to better service customers such as Huawei Technologies."

"Guangzhou fully supports the joint venture with Arasor; this Joint Venture will create the largest production facility built in Guangzhou since 2000," said Chen Mingde, vice mayor of Guangzhou.

Arasor Corp.