Lumenon Innovative Lightwave Technology, Inc. (NASDAQ NMS: LUMM) announced today it has modified and restructured its strategic agreement with Molex Incorporated (NASDAQ NMS: MOLX, MOLXA) to jointly develop products for Photonics market.

This agreement was amended to include consideration of Lumenon's recently developed in-house packaging capability. Under the terms of the amended agreement, Molex will pay Lumenon cost plus a percent of the profit obtained on final product built from Lumenon's proprietary chips.

In addition to the set number of chips that Molex originally agreed to purchase per month, the amended agreement gives Molex the rights to purchase up to 50 percent of the excess capacity. Lumenon will use its in-house capability to package and sell all remaining products.

The Company also announced that the teaming agreement between Lumenon and Molex has been extended to December 31, 2000 to insure the delivery of high quality packaged 1.55-micrometer multi channel products for the telecommunications market.

In addition, the Company announced that the 1.3-micrometer multi channel products for data communications market, is scheduled for limited availability for customer test in July 2000. Volume manufacture for both product classes is planned for January 2001. These products will be manufactured in Lumenon's new facility. The building for the new facility has been completed and is being readied for the completion of the clean room and the installation of manufacturing equipment.

In announcing the modified agreement, Dr. Iraj Najafi, President of Lumenon, said, "Our original agreement with Molex was a good starting point. This new modified agreement with Molex provides new opportunities for both Molex and Lumenon. Molex gains the ability to market through its customer base Lumenon-packaged devices. Lumenon gains additional flexibility in closer customer contacts and the challenge to support key customers directly as well as an opportunity to share profits for both chips and packaged devices.

"We receive additional revenue through the sharing of profit from the sale of chips in return for new opportunities and profits to Molex to market packaged product. The modified agreement also provides the opportunity for both Molex and Lumenon to serve as important second sources for each other in packaging and we have the ability to package and sell 50 percent or more of our excess capacity to other parties."

Dr. Tony Moretti of Molex Fiber Optics added, "Modifying this agreement will allow us to better support our current customers, as well as new Lumenon customers, with innovative packaged devices as we bring these new products to market. There is a high demand for these products and together we can meet that demand."

http://www.lumenon.com