HighWave Has a Troubled Half

LANNION, France -- HighWave Optical Technologies, (NouveauMarché, HGWO) a leading European supplier of Dense Wavelength Division Multiplexing(DWDM) sub-systems for the deployment of high-speed optical telecommunicationsinfrastructures, today announced half fiscal year 2003 consolidated financial results.Revenues for the first six months of fiscal year 2003, covering the period from 1st April to30th September 2002, decreased by 89% to €2.3 million, compared to €20.9 million for thesame period in the previous fiscal year. The operating loss for the first six months was €19.3million, compared to €28.8 million a year ago, a 33% improvement. The net loss for the firstsix months of the fiscal year 2003 was €22.9 million, (€0.40) diluted loss per share, comparedto a loss of €30.3 million, or (€1.73) diluted loss per share for the same period last fiscal year."In a particularly challenging environment, we have pursued our efforts to reduce costs and toadapt the company to the prevailing market conditions." stated Eric Delevaque, ChiefExecutive Officer. He added "Our efforts have been successful as is reflected in our resultswhich track our budget forecasts. In parallel to cost control, our main priority is theresumption of commercial activities."In the pursuit of our cost reduction efforts, the Company has implemented different measuresduring the last six months. All activities have been consolidated in Lannion. The Marseillesubsidiary was sold. The US and UK subsidiaries are in the process of closure. The Ulis sitehas been put up for sale. The Rennes site is closed and the one in Trégastel is only used as awarehouse. Moreover, the company has implemented a downsizing plan bringing itsworkforce to 65 people. Finally, excess inventory will be auctioned on 5 December 2002.Highwave Optical Technologies