Lumenon Sub Goes Bust

MONTREAL -- Lumenon Innovative Lightwave Technology, Inc. (Nasdaq:LUMM), announced today that its wholly owned Canadian operating subsidiary LILT Canada Inc. ("LILT") has filed a Petition under the Canadian Companies' Creditors Arrangement Act ("CCAA") with the Superior Court of Quebec and obtained an order granting it certain relief, including a stay of proceedings and protection from creditors. All of Lumenon's operations and activities are performed through LILT. Pursuant to the order, all payments in respect to any debt or obligations of LILT existing on or before January 8, 2003 are stayed and suspended pending development by LILT of a restructuring plan. The order provides for an initial stay period of 30 days, which could be extended by the court. During this period, LILT will continue its current operations and to develop its product(s). Richter & Associes Inc. has been appointed by the court to act as monitor pursuant to the provisions of the CCAA. LILT's petition under the CCAA will constitute a default under the terms of certain agreements to which Lumenon is a party, including under the terms of Lumenon's amended and restated convertible notes. If Lumenon fails to restructure its obligations under the notes or if the noteholders exercise the default remedies that they are entitled to exercise upon a default under the notes, Lumenon will be required to seek protection under Chapter 11 of the U.S. Bankruptcy Code. Lumenon is currently in discussions with the noteholders to explore the options related to restructuring its obligations under the notes. Commenting on the petition, Gary Moskovitz, Lumenon's President and Chief Executive Officer, stated, "The deterioration and the continuing uncertainty in the telecommunications sector has made it extremely difficult to obtain adequate financing to allow Lumenon to continue its operations. We believe that this step is in the best interest of all our stakeholders." Lumenon Innovative Lightwave Technology Inc.