VILLE ST. LAURENT, Quebec -- Lumenon Innovative Lightwave Technology Inc.'s (NASDAQ: LUMM) newly appointed President and CEO, Mr. Gary Moskovitz, announced today the Company's move-forward business strategy. "After an intensive analysis of current business conditions, we are taking the appropriate steps to implement and communicate what we believe to be a thoughtful program that will allow us to focus resources, generate revenue, and rationalize spending," said Mr. Moskovitz. The strategy is made up of three components: Re-focus Product Plans On Growing Market Segments In response to the recent market downturn, the Company will accelerate its transition from manufacturing simple passive components to offering a mix of products and services ranging from optical chips to integrated photonic devices. Integrated devices provide customers with greater levels of functionality and more value, enabling the deployment of advanced network equipment at lower prices. Lumenon will maintain its short-term focus on the regional and metro/access markets while continuing to pursue long haul opportunities. This strategy is in keeping with the previously announced joint development of an advanced COADM with Litton Poly-Scientific and the roll out of the Company's 4 and 8 channel passive CWDM devices. Leverage Core Strengths - Target Current Market Opportunities Lumenon's early success in both materials science and manufacturing has produced hybrid optical platforms of glass and polymers to create photonic devices that meet or exceed industry standards. Building on its core strengths in proprietary technologies, its high employee skill set, its patented PHASIC manufacturing process, and its 34,000 sq. ft world-class facility and "clean rooms", Lumenon will offer potential partners and customers a variety of stand-alone products and services, as well as end-to-end solutions that address initial optical circuit design, component manufacturing, packaging and testing. Workforce Re-focus and Rationalization Workforce re-focusing, a process that began in March of this year, has included the elimination of various senior management functions and a general flattening of the organization. In addition, the Company has trimmed administrative and support staff and repositioned certain key individuals to maximize their strengths. Moving forward the Company will be recruiting for critical science, engineering and financial positions. Lumenon has also reduced non-staff related operating expenditures. The changes reflect an approximate 25 percent net reduction in headcount, from 120 employees to approximately 90 as of June 8th, 2001. Lumenon will also be completing the consolidation of its R&D facility in Dorval, QC into its new, state-of-the-art, Ville St. Laurent, QC headquarters and manufacturing center. "Moving forward we are very focused on expense management," said Mr. Moskovitz. At the end of May, based on an unaudited estimate, Lumenon's cash position was CDN$23.6 million (US$15.2 million) compared to CDN$27.2 million (US$17.2 million) as of March 31, 2001. The Company is also estimating a one-time restructuring charge of CDN$2.4 million (US$1.55 million) to be distributed over several years. Lumenon Innovative Lightwave Technology Inc.