SAN JOSE, Calif. -- JDS Uniphase Corporation (Nasdaq: JDSU; and TSX: JDU) announced today a definitive agreement to acquire privately held Acterna Inc., a leader in broadband and optical test & management (T&M) solutions for service providers and network equipment vendors worldwide.

Under the terms of the agreement, JDS Uniphase will acquire Acterna for $760 million, comprising $450 million in cash and $310 million in JDS Uniphase's common stock, subject to adjustments. The acquisition is subject to customary closing conditions and regulatory approvals, and is expected to close in the quarter ending September 30, 2005.

With this acquisition JDS Uniphase becomes the leading provider of optical communications sub-systems and broadband T&M systems. With combined annual revenues of over $1 billion, its portfolio of products and services will enhance the deployment of Internet Protocol (IP)-based data, voice and video services over optical long haul, metro, fiber-to-the-home, DSL and cable networks. With sales and distribution in more than 160 countries, JDS Uniphase will serve an expanded customer base that includes the largest 100 telecommunications and cable services providers, and system manufacturers worldwide.

"Broadband and optical solutions are foundational to the growth of IP-based residential and business services," said Kevin Kennedy, president and CEO of JDS Uniphase. "We believe that vendors with a broad portfolio of vertically integrated broadband and optical solutions are best equipped to succeed in this market. With the addition of Acterna, we believe our combined portfolio and global sales channel will improve our ability to serve our customers as they deploy next generation IP services."

JDS Uniphase Corp.

Acterna Corp.