Ciena Announces Stock Split

LINTHICUM, Md. -- Ciena® Corporation (NASDAQ: CIEN - News), the network specialist, today announced that its Board of Directors has approved a one-for-seven reverse split of its common stock. The reverse split will become effective as of 5:00 p.m. Eastern Time on September 22, 2006.

At Ciena's annual meeting on March 15, 2006, shareholders approved a proposal to authorize the Board, in its discretion, to effect a reverse split of Ciena's outstanding common stock at one of three approved ratios, at any time prior to the 2007 annual meeting, without further action by shareholders.

The purposes of the reverse split are to increase the per share trading price of Ciena's common stock, thereby appealing to a broader range of investors; and to provide investors with more useful information in making period-to-period comparisons of Ciena's earnings per share. To the extent that the reverse split does succeed in attracting more investor interest in the stock, shareholders may also benefit from improved trading liquidity of the stock.

Upon the effectiveness of the reverse stock split, Ciena shareholders will receive one new share of Ciena common stock for every seven shares they hold. Ciena's common stock will begin trading on a split-adjusted basis when the market opens on September 25, 2006. For a period of approximately 20 trading days after the stock split becomes effective, NASDAQ will append a "D" to Ciena's stock symbol in order to inform the investment community of the reverse stock split.

In connection with the reverse split, the total number of common shares authorized under Ciena's Third Restated Certificate of Incorporation will be reduced from 980 million to 140 million shares. As of the end of Ciena's fiscal third quarter 2006, there were approximately 590.9 million shares of Ciena's common stock outstanding. Effecting the 1-for-7 reverse split will reduce that total to approximately 84.4 million shares. The reverse split will not change the number of shares of Ciena preferred stock authorized, which will remain at 20 million.

Ciena Corp. (NYSE: CIEN)