Sorrento Raises Further $10MSorrento Raises Further $10M

SAN DIEGO -- Sorrento Networks Corporation (Nasdaq: FIBR - News), a supplier of optical networking equipment for carriers and enterprises worldwide, announced today it has signed definitive agreements to raise approximately $10 million in gross proceeds from a private placement of its common stock and warrants to institutional and accredited investors. This commitment is in addition to the $6.35 million raised in the private placement that closed on December 31, 2003. Sorrento intends to use the net proceeds for general corporate purposes, including working capital, and to strengthen its balance sheet for long-term growth. Funding is expected to occur approximately one week following satisfaction of certain customary closing conditions.

Sorrento agreed to sell 2,921,512 new shares of Sorrento common stock, and warrants to purchase 1,460,756 new shares of Sorrento's common stock. Investors will receive a warrant to purchase one share of common stock for each two shares of common stock purchased, therefore, the effective price in the private placement is $3.44 for each unit consisting of one share of common stock and a warrant to purchase one-half of a share of common stock. The warrants have an exercise period of five-years with an exercise price of $3.44 per share. The warrants are callable after one year under certain circumstances. The warrants are exercisable in cash, representing a potential $5 million in additional proceeds, bringing the total gross process of this offering to approximately $15 million assuming the warrants are fully exercised in cash. The warrants provide for cashless exercise under certain circumstances.

Sorrento Networks Corp.