Florham Park, NJ, May 28, 2002 - Xtellus, maker of dynamic optics components for reconfigurable optical networks, announced today that its leadership team is complete.

"We have carefully been building this team over the last few months, paying special attention to the value that each member can provide and their fit with the dynamic can-do culture we are building," said president and CEO, Dr. Gil Cohen. "We are at the point of completing the development of the products we successfully demonstrated to our customer base several months ago at OFC. We are now set on all fronts to proceed with their manufacture and qualification."

Xtellus' leadership team is comprised of:

• Dr. Gil Cohen, President and CEO, Founder. Dr. Cohen was a Founder and GM of Licom Technologies, a maker of optical communications components, that has since been partially sold, and VP of Instrumentation at Visionix, a supplier of technology to the ophthalmic industry. Dr. Cohen brings a proven ability to bring new optical products to market, and has multidisciplinary optical business management experience covering international sales and marketing, R&D and technical support.
  
• Dr. Sam Suh, VP Engineering and CTO, Founder. Dr. Suh has held key founding stage positions in two optical communications startups, Licom Technologies, and Yafo Networks where he was Head of Optics. Dr. Suh has unique experience and a successful track record in applying liquid crystal technology to leading edge fiberoptic communications and military devices.
  
• Dr. Yaron Silberberg, Xtellus Chief Scientist, Founder. Dr. Silberberg has an international reputation for his work on optical devices, nonlinear optics and ultrafast optics, and owns several significant patents related to optical communication devices. Dr. Silberberg spent eleven years at Bellcore (currently Telcordia) in the optical communications section of their Applied Research division, and was made a Fellow of the Optical Society of America in 1991. Dr. Silberberg is currently also a Professor of Physics at the Weizmann Institute of Science.
  
• Mr. Jonathan Homa, VP Business Development. Mr. Homa is a telecommunications market/business development executive with an engineering background. He has twenty-two years experience in defining and driving market acceptance of products and solutions for optical, Internet, wireless and telephony networks. Mr. Homa's previous position was Nortel Networks Vice President for Architecture Marketing and Telcordia Relationship.
  
• Mr. Ron Glass, VP Operations. Mr. Glass has eighteen years manufacturing operations experience in startups and large companies. He has assembled and led high-performing teams at Agility Communications, Agere, Lucent and AT&T.
  
• Mr. Yossi Corem, GM Xtellus Israel. Mr. Corem has fifteen years experience in electro-optic system design and integration, in industry and the military. His previous experience includes managing Trellis Photonics Optical Integration group, and team leader at Applied Materials in the reticle inspection product unit.
  
• Mr. Robert B. Sando, Director of Finance. Mr. Sando is a seasoned startup finance director with over fifteen years of private equity, managerial accounting and public accounting experience. He has held similar positions with a number of startups including Director of Finance at Qtera, CFO at SkyDirect and VP Finance at Elcom Technologies.
  

Xtellus also announced that it obtained a capital equipment lease line for $1.2 million with European Venture Partners. The company will use the funds to complete its manufacturing infrastructure. Dr. Cohen said, "The market is offering outstanding bargains, this lease line will cover a significant part of our manufacturing equipment needs. This is a great time to be a buyer and a builder of infrastructure."

Xtellus develops, manufactures and markets best-in-class dynamic optics components and modules for multiwavelength, reconfigurable optical networking systems. Xtellus products provide wavelength management and optical power control functionality and include components such as reconfigurable optical add/drop multiplexers.