CLEARWATER, Fla. -- Digital Lightwave(R), Inc. (Nasdaq:DIGL), a leading provider of networking solutions, today announced its acquisition of the optical network management product line of privately-held LightChip, Inc., a Salem, N.H.-based provider of innovative components and subsystems for optical networks. Terms of the transaction, which closed on October 11, 2002, were not disclosed. Digital Lightwave plans to integrate LightChip's line of remote wavelength management solutions for DWDM systems with its own comprehensive Network Access Agent(TM) (NAA(TM)) product line for centralized network testing and monitoring, under the company's recently formed Network Management Systems business unit. The combined product offering will enable network operators to significantly reduce service costs and resolve network problems before they impact customers, while cost-effectively meeting customers' service-level requirements. LightChip has several ongoing product field trials underway with leading telecommunications companies. As part of the transaction, Digital Lightwave will receive product inventory, patented technology and certain other LightChip assets. In addition, Digital Lightwave will establish a New Hampshire research and development facility, and hire approximately 20 key LightChip engineering, manufacturing and sales professionals. Specific products acquired by Digital Lightwave include LightChip's Optical Wavelength Manager (OWM), a highly sophisticated DWDM analysis system that provides more functionality and reliability than traditional optical spectrum analyzers at a significantly lower cost. The OWM is available in a compact rack-mountable or portable version -- each providing remote analysis and management via a web-enabled PC interface. The OWM remotely monitors up to eight optical fibers and provides fast and highly accurate analysis of optical wavelengths. "We are pleased to add LightChip's OWM product line to our growing portfolio of networking solutions," said Jim Green, president and chief executive officer for Digital Lightwave. "This highly complementary technology will further extend the capabilities of our core NAA product offering, while enabling us to leverage the cost-of-ownership advantage of our remote test and monitoring solutions with our customers." Lightchip Inc. Digital Lightwave Inc.