Finisar Introduces 10G SFP+ LRM With Interoperability Demo at OFC

SUNNYVALE, CA -- (MARKET WIRE) -- March 27, 2007 -- Building upon its record as a leader in innovation of fiber optic components and subsystems for datacom, and telecom applications, Finisar Corporation (NASDAQ: FNSR) today announced demonstrations of several new modules at the Optical Fiber Conference in Anaheim, California. The demonstrations highlight key optics technologies including 10 Gb/s SFP+ LRM (Small Form-Factor Pluggable Long Reach Multimode), GPON (Gigabit Passive Optical Network) transceivers for Optical Line Termination (OLT) and Optical Network Unit (ONU) applications, and Extended Reach DWDM (Dense Wavelength Division Multiplexing) SFP transceivers.

10G SFP+ LRM

Using Finisar's low-power-dissipation 10 Gb/s SFP+ LRM modules, Finisar will demonstrate an error-free link over 220 meters of legacy multi-mode fiber. These modules achieve the 220 meter distance using Electronic Dispersion Compensation (EDC) solutions from Aeluros and Vitesse. The power consumption is less than 1W. These modules also offer a robust mechanical bail-latch design, excellent optical and electrical performance, and Finisar's patented digital diagnostics functionality.

SFP+ is a new mechanical form factor highly anticipated by Ethernet and storage equipment vendors who want to be able to leverage the benefits of high-density and low power consumption. LRM is the latest optical reach for SFP+ supported by Finisar, in addition to existing 10 Gb/s Ethernet Short Reach (SR) and Long Reach (LR) product lines. With this new module, Finisar now offers a "triple-plus solution" -- 10 Gb/s SFP+ SR, LR, and LRM -- supporting the three key optical reaches for datacom and storage equipment vendors in the SFP+ form factor.

"Finisar's SFP+ demonstration is an important milestone," said Rafik Ward, director of marketing, Finisar. "We believe the 10 Gb/s SFP+ LRM module fits a rapidly emerging market need and the interoperability we've shown with our LRM product helps give designers the confidence they need to design SFP+ into their next generation networking equipment."

"Aeluros's EDC technology is now mature enough to enable the adoption of SFP+ based applications across a number of different market segments," said Don Stark, vice president of engineering for Aeluros. "We have thoroughly tested our EDC devices over a variety of test conditions including CSRS tests defined in the IEEE802.3aq standard, to verify compatibility with SFP+ transceivers from vendors like Finisar."

According to Vitesse director of marketing, Richard Interrante, "Vitesse's production-ready EDC technology is enabling vendors like Finisar to provide SFP+ LRM optical solutions to their customers. We are proud to be associated with this demonstration of interoperability at OFC."

GPON

Finisar has also set its sights on providing modules for the fast-growing GPON OLT and ONU market, leveraging its expertise in quality and high volume manufacturing to ensure a reliable source to its customers that can meet growing GPON demand. In addition to offering Finisar's signature advanced diagnostic capabilities, the Finisar GPON modules are specifically designed for high-volume manufacturing, a critical factor to successful PON deployment. These modules are part of a complete and broad portfolio of products targeting telecom applications in the access, metro and transport networks that leverage Finisar's experience in vertical integration.

DWDM

Finisar will also demonstrate Extended Reach DWDM SFP modules which offer network designers the opportunity to reduce the number of amplifiers and dispersion compensation modules used in a network. This reduction creates instant cost savings in new metro network deployments as well as increased reliability by eliminating points of failure. In the demo, error-free data is transmitted over 2 C-band DWDM SFP's on different wavelengths over 160 km of fiber utilizing an Erbium Doped Fiber Amplifier (EDFA) while avoiding the need for dispersion compensation in the link.

Demonstrations are on display at OFC, March 27-29, at Finisar's transceivers and transponders booth #3431 in the main hall. Finisar will also demonstrate its latest advanced optical components in booth #3127. For more information about these specific technologies visit www.finisar.com or contact Finisar directly at 1.408.548.1000 or sales@finisar.com.

About Finisar

Finisar Corporation (NASDAQ: FNSR) is a technology leader for fiber optic components and subsystems and network test and monitoring systems. These products enable high-speed data communications for networking and storage applications over Ethernet Local Area Networks (LANs), Fibre Channel Storage Area Networks (SANs), and Metropolitan Area Networks (MANs) using Fibre Channel, IP, SAS, SATA and SONET/SDH protocols. The Company's headquarters is in Sunnyvale, California, USA.

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The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding Finisar's expectations, beliefs, intentions, or strategies regarding the future. All forward-looking statements included in this press release are based upon information available to Finisar as of the date hereof, and Finisar assumes no obligation to update any such forward-looking statements. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those projected. These risks include those associated with the rapidly evolving markets for Finisar's products and uncertainty regarding the development of these markets; Finisar's historical dependence on sales to a limited number of customers and fluctuations in the mix of customers in any period; ongoing new product development and introduction of new and enhanced products; the challenges of rapid growth followed by periods of contraction; intensive competition and the integration of the acquisitions of AZNA, LLC and Kodeos Communications, Inc. These risks and uncertainties also include the extent to which additional stock-based compensation expense will be recognized as a result of the ongoing review of the Company's stock option granting practices; the timing of the Company's filings relating to any restated financial information; the impact of any regulatory review of the disclosures in those documents; and the potential impact of related civil litigation. Further information regarding these and other risks relating to Finisar's business is set forth in Finisar's Annual Report on Form 10-K and other reports as filed with the Securities and Exchange Commission.

Contact Information: MEDIA CONTACT: Victoria McDonald Finisar Corporation (408) 542-4261 victoria.mcdonald@finisar.com