JDSU Sells Product Line

SAN JOSE, Calif., and GRENOBLE, France -- Teem Photonics S.A. of Grenoble, France and JDS Uniphase Corporation (Nasdaq: JDSU - News; TSX: JDU - News) of San Jose, California, USA, today announced their entry into a definitive agreement for the sale of JDS Uniphase's passive Q-switched microlaser product line and Grenoble, France, facility to Teem Photonics.

Additionally, the parties announced that JDS Uniphase will exclusively license to Teem intellectual property, including a number of patents, associated with passive Q-switched microlasers.

The microlaser product line is differentiated by its sub-nanosecond pulse widths with peak powers in the tens of kilowatts and repetition rates in the tens of kilohertz, as well as by its reliance on monolithic technology and its distinctive intellectual property. Teem Photonics and JDS Uniphase reached this agreement in recognition that current customers would be best served by a local owner capable of providing the Grenoble-based group more market focus, greater management attention, and improved targeting of investments. The parties have also agreed that JDS Uniphase will continue to supply Teem Photonics with components critical to the manufacture of these differentiated microlasers, ensuring no disruption of customer supply.

"This transaction is beneficial to customers, employees, and the two companies," stated Dr. Antoine Kevorkian, CEO of Teem Photonics. "We are located virtually next door to the Grenoble microlaser group of JDS Uniphase. Our track record in selling optical modules that require state-of-the art performance, high reliability and cost-effectiveness will enable us to serve current microlaser customers well and expand this activity. This transaction offers Teem Photonics the ability to leverage our assets, facilities and sales channel to market this product effectively."

"The divestiture enables us to focus management attention, sales resources and R&D on our leading solid state laser portfolio," said Phillip Meredith, vice president of JDS Uniphase's Commercial Laser Business Unit. "Transferring the Grenoble business to Teem Photonics serves our microlaser customers better and is consistent with our strategy of strengthening the performance of our laser business through effective partnerships."

JDS Uniphase Corp.