Sorrento Appeals Nasdaq Delisting

SAN DIEGO -- Sorrento Networks (Nasdaq:FIBR - News), a leading supplier of intelligent optical networking solutions for metro and regional applications, today announced that it will appeal a decision of the Nasdaq Staff to delist the Company's securities from the Nasdaq National Market. The Company received a letter from the Nasdaq Staff on January 23, 2003 stating that the Company will be delisted because it was not able to satisfy the deadline provided in an extension granted by Nasdaq in October 2002. As announced in October, the Staff had granted the Company until December 9, 2002 to sign definitive agreements with its debenture holders and the Series A shareholders of its principal operating subsidiary, Sorrento Networks, Inc. ("SNI"), and until January 8, 2003 to demonstrate compliance with all continued listing requirements. Until the capital restructuring is completed, the Company will not comply with either the minimum $4,000,000 net tangible assets or $10,000,000 stockholders' equity requirement for continued listing set forth in Marketplace Rule 4450(a)(3). The Company believes that it is still possible to complete the capital restructuring transaction by the end of March 2003, although it was not able to meet the schedule required by the initial Nasdaq extension. Accordingly, it has appealed the Staff's determination to a Listing Qualifications Panel pursuant to Marketplace Rules 4800 et seq. The Company's securities will remain listed on the Nasdaq National Market pending the Panel's decision. Separately, the Company also announced that 100% of SNI's Series A preferred shareholders have now agreed to support the capital restructuring plan, and that definitive agreements are in the final stages of preparation. The Company previously announced that 100% of its debenture holders had agreed to the plan. Commenting on the Nasdaq Staff decision, Sorrento's Chairman and CEO, Phil Arneson, stated: "While we are disappointed that the Staff decided that it could not exercise its discretion to grant us the additional time we need to complete our capital restructuring plan, we are encouraged that each and every one of the debenture holders and Series A shareholders have expressed their commitment to the success of the Company by supporting the plan, and we are moving forward as rapidly as possible to complete definitive agreements and obtain shareholder approval. While challenges remain, we intend to make as much progress as we can before the hearing on our appeal, and believe that our arguments before the Panel in support of our continued Nasdaq listing will be strong. With our excellent product line, strong customer base, and the continuing uptrend in orders and shipments, we are all excited at the Company's prospects once the recapitalization is completed." No assurance can be given, however, that the appeal will be successful. Sorrento Networks Corp.