Finisar Buys Honeywell VCSEL Business

SUNNYVALE, Calif. -- Finisar Corporation (NASDAQ: FNSR) and Honeywell International Inc. (NYSE: HON) announced today that they have entered into a definitive agreement in which Finisar has agreed to acquire Honeywell's VCSEL Optical Products business, based in Richardson, Texas, for approximately $75 million in cash. The transaction is subject to applicable regulatory approvals and other customary closing conditions and is expected to close in the first calendar quarter of 2004. Following the completion of the acquisition, Finisar expects to continue to operate the business at the Richardson, Texas facility.

Honeywell's VCSEL Optical Products business manufactures vertical cavity surface emitting lasers (VCSELs), primarily used in high-speed fiber optic data communications and position sensing applications. VCSELs are cost-effective optical components that deliver coherent light with high efficiency and can be modulated at high speeds. Finisar provides fiber optic subsystems and network performance test systems that enable high-speed data communications for networking and storage applications.

"The VCSEL Optical Products business is a proven technology leader with excellent long-term potential and strong product position," said Roger Fradin, President of the Automation and Control Solutions (ACS) division of Honeywell. "This business has been considered non-core to Honeywell ACS's strategic focus of developing its sensing and control, fire and security, process solutions and building solutions businesses. Selling the unit represents a strategic win for the VCSEL business, Finisar, Honeywell, our joint customers and employees."

"We plan to continue the operation of this business as a worldwide supplier of VCSELs," said Jerry Rawls, Finisar's President and CEO. "This group has developed a reputation as an excellent supplier to the industry and we expect to continue that tradition. In addition, VCSELs are probably the single most important component in a short wavelength transceiver in terms of performance, reliability and cost. With short wavelength transceivers comprising a significant portion of our total unit volume, this acquisition will also help us to realize additional cost savings."

Finisar Corp.

Honeywell International Inc.