Nasdaq Denies GigOptix

BOTHELL, Wash. -- Lumera Corporation (NASDAQ:LMRA - News) (the "Company") today announced that it has received information from the staff at the Nasdaq Stock Market, Inc., indicating that the NASDAQ Listing Qualifications Department has determined that GigOptix, Inc. will be subject to the initial listing requirements, rather than the continued listing requirements. GigOptix, Inc. will not meet the requirement of at least $15 million of public equity value for initial listing on the Nasdaq Capital Market. Therefore, upon consummation of the merger, the common stock of GigOptix, Inc. will be listed for quotation on the OTC Bulletin Board, which is not a national securities exchange. It is a condition to the closing of the merger under the Agreement and Plan of Merger, dated as of March 27, 2008, by and among GigOptix, LLC, the Company, GigOptix, Inc., Galileo Merger Sub G, Inc. and Galileo Merger Sub L, Inc (the “Merger Agreement”) that GigOptix, Inc. common stock be approved for listing on the Nasdaq Global Market or the Nasdaq Capital Market. However, the Company and GigOptix LLC intend to waive this closing condition.

Additionally, the Company announced that the Board of Directors of the Company and Management Board of GigOptix are expected to approve a change in the exchange ratio for the Company’s common stock pursuant to the Merger Agreement. The Merger Agreement currently provides that each share of the Company’s common stock will be converted into the right to receive 0.25 shares of GigOptix, Inc. common stock, which is a 4 to 1 reverse split. However, the parties have agreed that each share of the Company’s common stock will instead be converted into the right to receive 0.125 shares of GigOptix, Inc. common stock, which is a 8 to 1 reverse split. The exchange ratio applicable to GigOptix LLC membership unit holders will be adjusted to take into account this change and to maintain the same proportional ownership of the shares of GigOptix, Inc. Following the issuance of GigOptix, Inc. stock options and common stock warrants in the merger, former Company security holders will own approximately 50%, and former GigOptix LLC security holders will own approximately 50% of the GigOptix, Inc. common stock, assuming all outstanding GigOptix, Inc. options and warrants are exercised. The total number of shares outstanding following the merger will be 5,227,855, and current Lumera shareholders will hold 3,011,044 shares.

Finally, the Company is pleased to announce that, based on current votes and assuming that no stockholders change or withdraw their votes prior to the Annual Meeting, all of the proposals before the stockholders at the Annual Meeting to be held December 4, 2008 have received sufficient votes to pass. The Merger is currently anticipated to close on December 9, 2008, and the first trading day for GigOptix, Inc. will be December 10, 2008.

Lumera Corp.