Read-Rite Sells Scion to JDSU

MILPITAS, Calif. -- Read-Rite Corporation (Nasdaq: RDRT) today announced the sale of Scion Photonics, Inc., ("Scion") its majority-owned subsidiary, to JDS Uniphase Corporation ("JDSU"). Scion, an integrated solution provider to the fiber optics industry was established by Read-Rite in September 2000 and received additional funding from Integral Capital Partners and Tyco Ventures in October 2000. JDSU was an investor in Scion's second round of financing earlier this year and acquired the balance of Scion's stock in a cash transaction valued at approximately $43 million. "The Scion team has done a tremendous job over the past 19 months in establishing itself as the recognized leader in planar lightwave circuit ("PLC") technology, including Scion's volume-ready 8-inch PLC fab. JDSU, perhaps the premier optical components company in the world, clearly recognizes Scion's value with this acquisition," stated Alan S. Lowe, president and chief executive officer of Read-Rite. "In light of the current conditions in the telecommunications industry, we felt, along with Scion's other investors, that the best way to capitalize on Scion's capabilities and to insure their success going forward was the sale to one of the key long-term players in the industry," he added. As a result of the transaction, Read-Rite expects to record a gain in the third fiscal quarter ending June 30, 2002 in the range of approximately $8-9 million. JDS Uniphase Corp. Scion Photonics Inc.