Oplink Buys OCP StakeOplink Buys OCP Stake

Oplink signs agreement with Furukawa Electric to acquire a majority stake in Optical Communication Products

April 23, 2007

2 Min Read

FREMONT, Calif. -- Oplink Communications, Inc.(Nasdaq:OPLK), a leading photonic components, intelligent modules, andsubsystems solution provider, today announced that is has signed adefinitive agreement with The Furukawa Electric Co., Ltd. ("Furukawa") toacquire a majority interest in Optical Communication Products, Inc. ("OCP")(Nasdaq:OCPI).

OCP is a leading designer and manufacturer of fiber-optic communicationcomponents and subsystems. They manufacture a line of transceivers,transponders, transmitters, receivers, DWDM and CWDM solutions that addressthe metro, local, PON and storage area networking markets.

Under the terms of the agreement, Oplink will acquire all 66,000,000 sharesof OCP common stock held by Furukawa, constituting approximately 58% ofOCP's outstanding shares, in exchange for $84,150,000 in cash and 857,258shares of Oplink common stock. The purchase price values the OCP sharesbeing purchased at $1.50 per share, with 85% of the purchase payable in cashand 15% payable in Oplink common stock (valued at Oplink's 30-day averageclosing price). The closing of the transaction is subject to customaryclosing conditions, including antitrust review. Oplink has delivered toOCP's board of directors an offer to acquire the remaining outstandingshares of OCP at a price of $1.50 per share in cash, subject to certainconditions.

The acquisition of OCP is expected to broaden Oplink's portfolio ofofferings and significantly expand its addressable market. The combinationof OCP's expertise in active optical components and subsystems and Oplink'sleadership in passive components and subsystems will create the industry'sleading solution set for metro and access applications.

"We are excited about the strong strategic fit of our companies and believethis acquisition will substantially benefit our combined customers,including Nortel, Cisco, Alcatel, Tellabs and Huawei, among many others,"commented Joe Liu, president and CEO of Oplink. "As the market leader inproviding components and subsystems for the access market, which is animportant and growing market with telecom and datacom customers, OCP is anatural complement to Oplink's metro solutions strength. We believe thecombined companies will make a strong competitive player and together wehave the opportunity for significant growth in revenue."

Oplink Communications Inc. (Nasdaq: OPLK)

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