EXFO Suite of Optical Test Solutions Selected by a Second US-based Tie

    Business Editors/High-Tech Writers

    QUEBEC CITY, Canada--(BUSINESS WIRE)--Jan. 6, 2005--EXFO Electro-Optical Engineering Inc. (NASDAQ:EXFO) (TSX:EXF.SV) announced today that a suite of FTTx (fiber-to-the premises, fiber-to-the-curb, fiber-to-the node) test instruments has been selected by a US-based Tier-1 network service provider (NSP) for fiber deployments in access networks.

    The leading NSP certified five of EXFO's FTTx-ready products on an exclusive basis for the next four years, including a unique passive optical network (PON) power meter, the PPM-350B, as well as the increasingly popular FOT-930 MaxTester, an automated multi-function loss test set that is ideally suited for access network fiber installation.

    This latest agreement adds a second US-based Tier-1 carrier to a group of several network operators that have selected EXFO as the supplier of choice for optical test applications in access networks.

    "It's becoming increasingly evident that EXFO is the leading supplier of FTTx-related test solutions," said Etienne Gagnon, EXFO's Vice-President of Optical-Layer Product Management. "Our significant R&D investments and close customer intimacy have elevated us to the position of partner of choice when it comes to test applications in access networks. This major long-term contract, despite high-volume discounts, will further extend our global leadership in optical installation and maintenance testing."

    About EXFO

    EXFO is a recognized test and measurement expert in the global telecommunications industry through the design and manufacture of advanced and innovative solutions as well as best-in-class customer support. The Telecom Division, which represents the company's main business activity, offers fully integrated and complete test solutions to network service providers, system vendors and component manufacturers in approximately 70 countries. One of EXFO's strongest competitive advantages is its PC/Windows-based modular platforms that host a wide range of tests across optical, physical, data and network layers, while maximizing technology reuse across several market segments. The Photonics and Life Sciences Division mainly leverages core telecom technologies to offer value-added solutions in the life sciences, high-precision manufacturing and research sectors. For more information about EXFO, visit www.exfo.com.

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CONTACT: EXFO Electro-Optical Engineering Inc. Vance Oliver Manager, Investor Relations (418) 683-0913, Ext. 3733 vance.oliver@exfo.com

KEYWORD: NEW YORK INTERNATIONAL CANADA INDUSTRY KEYWORD: TELECOMMUNICATIONS PRODUCT SOURCE: EXFO ELECTRO-OPTICAL ENGINEERING INC.

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