SOURCE: Finisar

October 10, 2006 05:00 ET

Finisar Unveils New Manufacturing Plant in Texas

Eighteen Acre, State-of-the-Art Production Facility Constructed to Feed Increasing Demand for Advanced Fiber Optics; Allen, Texas Mayor Joins Finisar CEO at Ribbon-Cutting Ceremony

ALLEN, TX -- (MARKET WIRE) -- October 10, 2006 -- At a ribbon-cutting ceremony held today in Allen, Texas, Finisar Corporation (NASDAQ: FNSR), a technology leader in gigabit fiber optic solutions for high-speed data networks, unveiled its newly expanded, state-of-the-art fiber optics manufacturing facility. Hundreds of attendees were on hand to take part in the unveiling, including Finisar chairman, president and CEO Jerry Rawls, Allen, Texas Mayor Steve Terrell, Finisar employees, customers and select members of the press. Spanning eighteen acres within the Millennium Technology Park in Allen, the 160,000 square foot building features metalorganic chemical vapor deposition (MOCVD) reactors and automated assembly for Vertical Cavity Surface Emitting Lasers (VCSELs).

"We are extraordinarily proud of our employees in Texas and around the world who have worked so hard to make this expansion possible," said Jerry Rawls, chairman of the board, president and CEO, Finisar. "Finisar's legendary passion for performance combined with this newly expanded, state-of-the-art facility will enable us to power more of our customers' new and exciting technology applications, including video on demand, HDTV and mobile computing."

The Allen manufacturing site currently employs over 300 employees and ships hundreds of thousands of laser and sensor products each week. Finisar invested more than $13 million during the past fifteen months renovating the facility, refurbishing a second reactor, installing a second wafer fabrication line and implementing new assembly and test equipment. This investment supports the upgrade of Storage Area Networks products from 2Gbit/second to 4Gbit/second as well as the rollout of 10Gbit/second products for Local Area Networks (LANs).

"Finisar has worked hard to establish itself as a leader in the optics space, and this new facility is further proof of our success," said Joseph Young, senior vice president and general manager, Optics Group, Finisar. "We are confident that the newly renovated facility will enable us to not only meet, but exceed production expectations -- allowing Finisar to supply products to our customers and meet the ever-growing demand for bandwidth while continuing to be the gold-standard for quality in the industry."

Finisar acquired Honeywell International's VCSEL Optical Products business in March 2004, strengthening its position as a leading supplier of high-speed fiber optic data communication products. Commercial production of VCSELs began in 1996 as part of Honeywell Labs. Finisar's Advanced Optical Component (AOC) division was created as an autonomous unit at the time of acquisition. Over the last ten years, the AOC division has shipped over 50 million lasers, a major milestone for the industry, establishing itself as the market leader within the data communications sector.

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 Gigabit 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. www.finisar.com.

SAFE HARBOR UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

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; and intensive competition. 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 interim reports as filed with the Securities and Exchange Commission.