EMCORE to Acquire Telecom Assets of Intel's Optical Platform Division

EMCORE Corporation and Intel Corporation today announced a definitive agreement for EMCORE to acquire the telecom-related portion of Intel’s Optical Platform Division for $85 million. The telecom assets to be acquired include intellectual property, assets and technology relating to tunable lasers, tunable transponders, 300-pin transponders and integrable tunable laser assemblies. The transaction is subject to regulatory review and certain other closing conditions, and is expected to close in the first quarter of 2008. The acquisition will enhance EMCORE’s presence in the telecommunications market segment and expand its fiber optics product portfolio, allowing EMCORE to provide telecom customers with a more complete product offering. "This transaction represents an important step for EMCORE,” said Reuben Richards, CEO, EMCORE. "We are excited about this acquisition and the opportunity to continue building upon Intel’s leading tunable laser technology, strong product quality and history of customer service and satisfaction. The acquired assets should drive substantial product cost reduction, and the combined product portfolio should enable EMCORE to gain a greater share of customer spending. EMCORE estimates these assets will generate $65 million of revenue in 2008, and believes this acquisition will accelerate its path to earnings per share profitability as expected in mid-2008.” "The optical telecom components business continues to be an attractive market opportunity, but we believe this business and its assets are an optimal fit with EMCORE,” said Doug Davis, vice president, Intel Digital Enterprise Group, and general manager, Embedded and Communications Group. "The two companies will work together following the close of the transaction to complete a smooth transition of the business.” The sale of these telecom-related assets enables Intel to focus its investments on core communications and embedded market segments in line with its platform strategies. In addition to this announced transaction, Intel is currently exploring strategic alternatives regarding the enterprise-focused portion of its Optical Platform Division. About Intel Intel, the world leader in silicon innovation, develops technologies, products and initiatives to continually advance how people work and live. Additional information about Intel is available at www.intel.com/pressroom. About EMCORE EMCORE is a leading provider of compound semiconductor-based components and subsystems for the broadband, fiber optic, satellite and terrestrial solar power markets. EMCORE has two operating segments: Fiber Optics and Photovoltaics. EMCORE’s Fiber Optics segment offers optical components, subsystems and systems that enable the transmission of video, voice and data over high-capacity fiber optic cables for high-speed data and telecommunications, cable television (CATV) and fiber-to-the-premises (FTTP) networks. EMCORE’s Photovoltaics segment provides solar products for satellite and terrestrial applications. For satellite applications, EMCORE offers high-efficiency compound semiconductor-based gallium arsenide (GaAs) solar cells, covered interconnect cells (CICs) and fully integrated solar panels. For terrestrial applications, EMCORE offers its high-efficiency GaAs solar cells for use in solar power concentrator systems. For specific information about EMCORE, its products or the markets it serves, please visit www.emcore.com. Forward-looking statements: The information provided herein may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, any statement or implication that the transaction described herein will actually close and will produce the anticipated results described for EMCORE, including our estimates and beliefs regarding revenue and profitability in 2008 and our expectations regarding product costs and increased customer spending. Such forward-looking statements involve risks and uncertainties that, if realized, could materially impair EMCORE’s results of operations, business, and financial condition. These risks and uncertainties include, but are not limited to, (a) the ability of both parties to satisfy the conditions necessary for the closing of the transaction; (b) the ability of EMCORE to successfully integrate the purchased business into its operations; (c) the ability of EMCORE to retain critical employees of the purchased business; the acceptance by Intel’s customers of EMCORE as a supplier; (d) the ability to transition certain key agreements, including lease arrangements; (e) cancellations, rescheduling or delays in product shipments; (f) manufacturing capacity constraints; (g) possibly lengthy sales and qualification cycles; (h) changes in telecom industry growth or product or technology requirements; (i) increased competition; (j) delays in developing and commercializing new products; and (k) other factors discussed from time to time in reports filed by the Company with the Securities and Exchange Commission. The forward-looking statements contained in this news release are made as of the date hereof and EMCORE does not assume any obligation to update the reasons why actual results could differ materially from those projected in the forward-looking statements. Intel and the Intel logo are trademarks of Intel Corporation in the United States and other countries. -- Other names and brands may be claimed as the property of others.