SAN JOSE, CALIF. -– As part of a wider program to drive operational efficiencies throughout the Company, JDS Uniphase (NASDAQ: JDSU and TSX: JDU.NV) today announced a strategic supply agreement with Fabrinet to further consolidate manufacturing and streamline its supply chain.

The agreement includes the sale to Fabrinet of JDS Uniphase’s Singapore and Bintan, Indonesia, manufacturing operations and provides JDS Uniphase with long-term sourcing guarantees for the datacom transceivers currently being manufactured at these facilities. Approximately 450 employees associated with manufacturing will transfer to Fabrinet, although JDS Uniphase will retain its Singapore design and development team. Terms of the agreement were not disclosed.

“Since 2000, Fabrinet has established itself as a dependable partner, and we are confident in their commitment to high quality, cost-effective and scalable manufacturing services,” said Debora Shoquist, vice president of Operations for JDS Uniphase. “As part of our overall commitment to customer responsiveness, we believe this consolidation will allow us to gain efficiencies, leverage our partner’s strengths and simplify our supply chain, without detriment to our customers’ stringent quality requirements.”

JDS Uniphase has been consolidating its manufacturing and transferring product lines to high volume, lower cost operations such as its Shenzhen facility and with manufacturing partners such as Fabrinet. We believe this strategy allows JDS Uniphase to leverage greater economies of scale and streamlined operations to drive cost and quality improvements, quicker turnaround and reduced lead times.

Fabrinet, a contract manufacturer with operations in Bangkok, Thailand, has been providing high volume, lower cost manufacturing services to major optical component suppliers including JDS Uniphase since 2000, and has been manufacturing datacom transceivers for JDS Uniphase since 2002.

JDS Uniphase Corp.

Fabrinet Co. Ltd.