JDSU Buys Metconnex's Tech

MILPITAS, Calif. -- JDSU (Nasdaq: JDSU; and TSX: JDU), the leading enabler of broadband and optical innovation, today announced the acquisition of the technology and patent portfolio of Metconnex Canada, Inc., a developer of wavelength selective switch (WSS) modules. JDSU did not acquire any of Metconnex's business operations. Under the terms of the agreement, JDSU will acquire Metconnex's intellectual property (IP) for $2.5 million. In connection with the acquisition and the liquidation of Metconnex, both parties agreed to dismiss all pending litigation including litigation commenced by JDSU against Metconnex and certain of its officers and employees for alleged violation of JDSU patent and intellectual property rights.

"We will continue to use our extensive portfolio of patents and proprietary technology to enable broadband and optical innovation in all parts of the world," said Matthew Fawcett, general counsel for JDSU. "JDSU's intellectual property stems from the hard work, inspiration and intelligence of our employees, and we are committed to protecting it."

WSS technology is central to JDSU's portfolio of reconfigurable add/drop multiplexers, or ROADMs, which are increasingly used by carriers to enable the rapid, cost-effective roll-out of triple-play services. The addition of the Metconnex IP further strengthens JDSU's ROADM leadership, expanding the most comprehensive portfolio of IP-protected ROADM solutions for the diverse long-haul and metro architectures demanded today.

JDSU offers the most comprehensive portfolio of ROADM, with products based on each of three underlying technologies: liquid-crystal based blockers, planar-lightwave-circuit (PLC) and micro-electromechanical systems (MEMS) based WSS. ROADMs are an integral part of the Agile Optical Network (AON), a flexible network architecture that enables service providers to support the bandwidth-hungry applications that are increasingly demanded by their customers.

"By the end of fiscal year 2006, JDSU had shipped more than 9,000 ROADMs carrying traffic in both long-haul and metro networks," said Mike Ricci, senior vice president of JDSU's optical communications group. "Optical networks are evolving from two-directional ring architectures, to free-form mesh architecture of interconnecting optical circuits dependent upon ROADM-based switching. With their unsurpassed reliability, JDSU ROADMs have been selected by the vast majority of service providers worldwide."

JDSU (Nasdaq: JDSU; Toronto: JDU)

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