Xtellus Supplies KOPTI with Wavelength Blocker Technology -
Will Collaborate on Advancing Dynamic Fiberoptic Applications with KOPTI in Korea

Morris Plains, NJ, Dec. 11, 2003 - Xtellus, a maker of dynamic optical modules and components for reconfigurable optical networks, announced today that it is supplying KOPTI (Korea Photonics Technology Institute) with its state-of-the-art Dynamic Blocker Equalizer wavelength blocker technology. KOPTI was established in 2001 with a $130M grant from the Korean government to assist photonics companies develop and commercialize new technologies. Xtellus and KOPTI have signed a Memorandum of Cooperation to work together to accelerate the deployment of advanced fiberoptic applications in the Republic of Korea. As an initial activity KOPTI will use the wavelength blocker technology to develop and showcase reconfigurable optical add/drop multiplexers applications (ROADM). KOPTI will also work with Xtellus' subsidiary in Korea that fabricates liquid crystal processors for telecommunications applications to identify, create and accelerate the commercialization of Xtellus fiberoptic products.

"KOPTI has outstanding credentials in bridging the photonics technology and industry covering R&D and qualification," said Gil Cohen, president and CEO, Xtellus. "We are delighted to have them as a partner to expedite the acceptance of our dynamic optical products in the Korean market and also to help us obtain more value from our liquid crystal fab in Daejon."

The Korean government is granting a total of $750M over the next five years to Gwangju City to build a photonics infrastructure at whose heart is KOPTI. To support Korean researchers and companies KOPTI is well equipped with Long Haul and Metro DWDM and WDM-PON testbeds as well as a Telcordia qualification lab. In addition, KOPTI's new proposal of sub-system FAB Line Program will fill a gap between new business startups and venture capitalists by supporting prototyping, pilot production and marketing. KOPTI hopes that this new program will gather many photonics companies to this world-best photonics cluster city of Gwangju, Korea where the heart of Korean photonics industry is located. "Anybody from the world with a new breakthrough technology concept, talents and team is welcome to Gwangju," said Dr. Sang-Sam CHOI, president of KOPTI. "We are happy to have a chance to work with Xtellus in this field."

About KOPTI
Korea Photonics Technology Institute (KOPTI), a new photonics technology innovator, is established on Apr-2001 in Gwangju, Republic of Korea and a research institute dedicated to the development of photonics technology and industry in Korea. KOPTI guides Korean photonics industry to opportunities for creating a new value by industrializing basic and applied technology and builds advanced technology infrastructure and implement a comprehensive industrial support system. KOPTI will continue to contribute to the development of the Korean photonics industry by enhancing its R&D capabilities. For more information visit www.kopti.re.kr or sister site www.kapid.org or contact Dr. Nam Seong KIM, E-mail: knskim@kopti.re.kr, Tel: +82-62-573-8605 or +82-11-637-1035.


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