PALO ALTO, Calif. -- GigOptix, Inc. (OTCBB: GGOX), a leading supplier of high performance electronic and electro-optic components that enable next generation 40G and 100G optical networks, today announced that it has signed a definitive merger agreement to acquire Endwave Corporation (NASDAQ: ENWV), a leading provider of high frequency RF solutions and semiconductor products for the wireless mobile backhaul communications, satellite communications, electronic instruments and defense and security markets. The combined company will retain the name GigOptix, Inc. to become a high speed, high frequency leader for optical and wireless communications. The acquisition is expected to close in the second quarter of this year.

"I am very excited about the strategic merger of GigOptix and Endwave. Once complete, the combined company will be well positioned to be a leader in high speed communication components. We are set to offer solutions to both the optical and microwave RF front ends that will drive continued growth and bring added value to our customers and stockholders," commented Dr. Avi Katz, GigOptix's Chairman of the Board of Directors and Chief Executive Officer. "Responding to the core issue of increasing bandwidth to meet customer demand has shaped the technology advancements for both companies. By combining Endwave's extensive point to point microwave radio system knowledge and Monolithic Microwave IC (MMIC) product portfolio with GigOptix's portfolio of optical modulators and broadband amplifiers, it positions us to not only expand our market opportunities, but also enables us to increase our penetration of the existing customer bases and market segments. The combined company will be able to leverage Endwave's manufacturing and GigOptix's high speed fiber optic front end technology to provide cutting-edge solutions for next generation 100G and 400G drivers and electro-optic sub-systems."

Commenting on the merger, Mr. John Mikulsky, Endwave's President and Chief Executive Officer stated, "The merger of Endwave and GigOptix is an ideal combination of technology, opportunity and vision. As a combined company, I believe we can effectively build upon our technology leadership and success for a strong and exciting future. Together, we can deliver the most extensive and comprehensive product portfolio in the industry, providing customers with the highest quality yet cost-effective technology solutions. The Endwave team and I look forward to working with Dr. Katz and his team to achieve the next generation of success for the combined company."

GigOptix Inc. (OTC: GGOX)

Endwave Corp.