Optium to Acquire Kailight

HORSHAM, Pa. -- Optium Corporation(Nasdaq:OPTM), a leading supplier of high performance opticalsubsystems for the telecom and cable TV industries, announced that ithas entered into a definitive agreement to acquire Kailight Photonics,Inc., a technology leader in 40Gb/s optical transmission products.

Kailight's family of optical modules are the industry's most advanced300 Pin 40Gb/s transceivers addressing line side and client sideapplications. These modules offer best in class performance and valueto system integrators by enabling new functionality, such as integratedPMD (polarization mode disperson) compensation and multiple modulationformats, not currently available on any existing 300 Pin 40Gb/stransceivers in the market.

Kailight's 40Gb/s technology is expected be a key driver in thetransition from custom line card solutions to module-based solutions,while providing a cost effective path for customers to migrate to nextgeneration modulation formats. Kailight transceivers have beenqualified with several system integrators and have begun shipping inpre-production quantities.

The acquisition will build on Optium's broad suite of optical transportsolutions, which features fully wavelength agile DWDM, SONET and 10GEtransceivers and subsystems, 10Gb/s pluggable transceivers, CATVtrunking and distribution subsystems and Optium's next generation WSSROADM product line. In addition, this acquisition will enable Optium toprovide full line card solutions of all variations of 40Gb/sapplications.

"We believe that the combined strength of the two companies willoptimize Kailight's next generation 40Gb/s technologies andintellectual property by leveraging Optium's proven skills in bringingadvanced technologies to market as well as its strong customerrelationships. We look forward to being a part of the Optium team andrealizing our combined product vision," stated Sagie Tsadka, Presidentand CEO of Kailight.

Optium Corp. (Nasdaq: OPTM)