MRV Divests Components

CHATSWORTH, Calif. -- MRV COMMUNICATIONS, INC. (Nasdaq: MRVC - News), a leading provider of optical networking infrastructure solutions and optical components, today announced its divestiture from a majority ownership in Luminent's Passive components division, previously known as FOCI and QOI. MRV has sold approximately 80% of Luminent's passive components divisions in Taiwan and in China to a group of investors led by the local management of the subsidiaries for the amount of $8 million in cash and $2 million in credit for future purchases. In addition, the new owner assumes debt of approximately $19 million, which were on MRV's balance sheet prior to the close.The transaction closed on October 15th, where Luminent's primary focus remains on active components for the Metro and Access markets. Luminent retained ownership of approximately 19.5% in FOCI, and will continue to resell their products in certain markets. The inter-company commercial and R&D relationships are expected to continue.As a result of this transaction, MRV's headcount has been reduced by approximately 430 people and the company expects to improve its GAAP results by an estimated $2 million per quarter.The passive component operations were acquired in April and June 2000 and were previously known as Fiber Optic Communications, Inc. (FOCI) and Quantum Optech Inc. (QOI). The passive components division is primarily focused on components used in both Metro and Long Haul telecommunications networks including thin-film filters, couplers, splitters, WDM multiplexers and de-multiplexers, isolators and circulators. The divestiture allows Luminent to focus on the active component market for the access and metro areas, including transceivers and fiber-to-the-home components.MRV Communications Inc.Luminent Inc.