Accelink Picks Ignis

OSLO, Norway -- Ignis Photonyx (www.Ignis.com), a 100-percent owned subsidiary of Ignis ASA, has signed a Letter of Intent (LOI) with Accelink Technologies Co. Ltd. In China, covering significant deliveries of Athermal and thermal AWGs and optical splitters over the next three years. A formal supply agreement will be finalized later in Q4, and the two companies will also jointly develop new chip design and packaging technologies.

Accelink is China’s leading optical component provider, offering high-performance fiber optic components, integrated optical sub-systems, and test instruments for optical fiber communications systems. Under the terms described in the LOI, Ignis Photonyx will deliver all of Accelink’s demands for Athermal AWGs and at least 50 percent of the demand for thermal AWGs and optical splitters.

In 2007, Ignis Photonyx delivered approximately $1 million worth of thermal AWGs to Accelink and expects sales to the company to increase to $2.5 to 3 million in 2008. The agreement is expected to significantly improve operational cash flow to Ignis Photonyx next year. Delivery volumes under the agreement are expected to grow by 25 to 30 percent annually in 2009 – 2010.

“This is a breakthrough contract in the large and growing Chinese market”, says Thomas Ramm, Ignis ASA’s CEO. “The major operators are preparing to rollout higher bandwidth networks, and through this partnership with Accelink we can capture a larger share of this major market opportunity.”

Ignis ASA