SOURCE: Bookham, Inc.

August 16, 2005 16:28 ET

Bookham to Receive $11.9 Million From Transaction With Deutsche Bank AG

SAN JOSE, CA -- (MARKET WIRE) -- August 16, 2005 -- Bookham, Inc. (NASDAQ: BKHM), a leading provider of optical components, modules and subsystems, announced today that it has completed a transaction with Deutsche Bank AG by which certain UK tax losses in Bookham Technology plc, Bookham, Inc.'s UK subsidiary, will be surrendered to reduce UK taxes otherwise due on sub-lease income payable to a former subsidiary of Deutsche Bank. This transaction will result in Bookham Technology plc having available net cash of approximately £6.63 million ($11.9 million USD). The Company plans to use these funds for general corporate purposes, additional working capital and capital expenditures. The transaction is more fully described on a Current Report on Form 8-K filed today with the Securities and Exchange Commission.

Under the terms of the agreement, the Company received £4.2 million ($7.5 million USD) when the transaction closed on August 10, 2005. Additional amounts of £1 million ($1.8 million USD) will be available on October 14, 2005 and July 14, 2006. The remaining balance of approximately £431,000 ($772,438 USD) will be available on July 16, 2007. The US dollar estimates are based on the currency exchange rate as of August 10, 2005 of £1.00 to $1.7922 USD.

"This transaction is a one part of our overall financing plan," said Dr. Giorgio Anania, president and chief executive officer of Bookham, Inc. "We anticipate that the proceeds will strengthen our balance sheet and provide us with the additional capital we need to expand our business."

The Form 8-K describing the transaction can be accessed on Bookham's website at: http://investor.bookham.com/phoenix.zhtml?c=120869&p=irol-sec

About Bookham

Bookham, Inc. (NASDAQ: BKHM) is a global leader in the design, manufacture and marketing of optical components, modules and subsystems. The company's optical components, modules and subsystems are used in various applications and industries, including telecommunications, data communications, aerospace, industrial and military. Since 2002, the company has acquired the optical components businesses from Nortel Networks and Marconi, as well as Ignis Optics, Inc., the business of Cierra Photonics Inc., New Focus, Inc., and Onetta, Inc. The company has manufacturing facilities in the UK, US, China and Switzerland; and offices in the US, UK, Canada, China, France and Italy; and employs approximately 2000 people worldwide. More information on Bookham, Inc. is available at www.bookham.com

Bookham is a registered trademark and all other Bookham product names and slogans are trademarks or registered trademarks of Bookham in the U.S.A. or other countries.

Safe Harbor Statement

Any statements in this announcement about the future expectations, plans or prospects of Bookham, including statements containing the words "believe," "plan," "anticipate," "expect," "estimate," "will" and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including factors described in Bookham's 10-K and quarterly report on Form 10-Q for the quarter ended April 2, 2005. These include continued demand for optical components, transfer of test and assembly operations to China, no further degradation in the $/£ exchange rate and the continued ability of the Company to maintain requisite financial resources. The forward-looking statements included in this announcement represent Bookham's view as of the date of this release. Bookham anticipates that subsequent events and developments may cause Bookham's views to change. However, Bookham disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this document. Those forward-looking statements should not be relied upon as representing Bookham's views as of any date subsequent to the date of this announcement.

Contact Information

  • Contact Info:
    Jim Fanucchi
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    Bookham, Inc.
    Steve Abely
    Chief Financial Officer
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