Intel Buys New Focus Laser Division

SAN JOSE, Calif. -- New Focus, Inc. (Nasdaq: NUFO - News), a leading supplier of innovative photonics solutions for the test and measurement, semiconductor, industrial, telecommunications and scientific markets, today announced that the company has closed the sale of its network tunable laser technology to Intel Corporation for $50 million in cash. Under terms of the transaction New Focus has assigned certain intellectual property rights and will transfer the physical assets associated with its network tunable laser program to Intel. Approximately 40 New Focus employees have joined Intel as part of the transaction. Under the agreement Intel has granted a license to New Focus that allows New Focus to use the tunable laser technology involved in this transaction for test and measurement and other non-network applications. New Focus and Intel have also entered into a supply arrangement under which Intel will supply New Focus with products developed by Intel using the acquired New Focus technology. "This transaction supports our strategic direction and creates a foundation that should speed the adoption of tunable laser technology into the test and measurement and other diversified markets. From New Focus' standpoint, this transaction lowers our financial risk and reduces the size of our quarterly operating loss while retaining the use of this important technology for targeted applications. Furthermore, the cash generated from this transaction provides funds to support our acquisition strategy," said Nic Pignati, president and chief executive officer of New Focus, Inc. Intel Corp. New Focus Inc.