Emcore Buys Agere's Opto Biz

SOMERSET, N.J. and ALLENTOWN, Pa. -- EMCORE Corporation (Nasdaq: EMKR - News), a leading provider of semiconductor technologies for global communications, and Agere Systems (NYSE: AGR.A - News, AGR.B - News) announced today that EMCORE has acquired Agere's West Coast optoelectronics business for $25 million in cash. The transaction includes assets, products, technology and intellectual property related to Agere's cable TV optical components, telecom access and satellite communications operations, which had revenues of approximately $56 million in fiscal 2002. Agere's West Coast optoelectronics group, located in Alhambra and Irwindale, California, consists primarily of the assets, personnel and operations of Ortel Corporation, which Lucent Technologies acquired in April 2000. "We are very excited about this acquisition and the growth opportunities it creates for our Company," said Reuben F. Richards, Jr., President and CEO of EMCORE Corporation. "We have always been impressed with the leading edge technology and talent of the former Ortel group. Agere's fiber optics products increase the capacity and performance of fiber-optic networks, enabling them to handle ever-increasing volumes of voice, video and data communications for both cable TV and telecom access applications. This business complements our current portfolio of solutions for high speed data and telecommunications networking systems, and allows us to extend our leadership into a new market area. We are committed to helping our customers realize the full potential of the 'triple play' in voice, data and video applications and intend to expand our existing portfolio of digital optoelectronic products to assist our customers in deploying fiber to the home and office." EMCORE estimates this business will have revenue of between $30 - $40 million for the Fiscal Year ending September 30, 2003. Agere's West Coast optoelectronics business has a workforce of approximately 230 employees. As part of today's agreement, 215 Agere employees will join EMCORE. The business will be consolidated into the Alhambra, California, facility, which EMCORE will now lease and will be operated as Ortel, a division of EMCORE. As previously announced, Agere will exit the Irwindale, California, facility by the end of March. "We are pleased that we have now completed the sale of our optoelectronics operations as planned," said Sohail Khan, executive vice president of Agere's Infrastructure Systems Group. "We will work closely with EMCORE to ensure a smooth transition for our cable TV, satcom and telecom access components customers. With the exit from our optoelectronics business, we are focusing our resources sharply on delivering advanced chips for wireless networks, multi-service networking and high-density storage applications. We believe that our solid market position, product portfolio and customer set in each of these areas strongly positions us for growth as the market recovers." Emcore Corp. Agere Systems