Sales support for the North American customer will remain the same through the OOC sales organization. OOC will continue to offer and support the existing 40G EAM, 10G EML, and 10G TOSA ROSA product lines. As a result of this alliance, OOC will be able to offer additional optical devices products.

NTT Electronics and Oki Team Up in the Optical Communication Device Business

TOKYO -- NTT Electronics Corp. and Oki Electric Industry Co., Ltd. (TSE: 6703 - message board) today announced that that they have reached an agreement to form an alliance covering a wide range of the optical communication device business, including the integration of two companies' production lines. The alliance aims to enhance product performance, cost competitiveness, and management efficiency in the recovering and steadily expanding optical communication device market by combining both companies' expertise in products, process technologies, and production capabilities. The new integrated production lines will be in operation in early August.

"In the optical component business area, many mergers and acquisitions have been reported, but this will be the first significant such alliance in Japan," said Dr. Hiroshi Yoshimura, Managing Director and Executive Director of the Photonics Business Group of NEL. "NEL will be able to improve and strengthen the component business through this alliance. I believe both NEL and Oki will be able to offer better service to our customers."

"Through the alliance, Oki will be able to further enhance its base in the optical communication device business, which can be expected to grow along with the expansion of broadband networks," said Masaharu Nishiwaki, President of the Optical Components Company at Oki Electric. "Both Oki and NEL have strengths in this area. We believe that both companies' technologies and skills in production and sales will prove complementary, resulting in excellent solutions that satisfy customer requirements."

Both NEL and Oki are leading vendors in the optical communication device market. NEL excels in process technology for high-speed laser diodes with greater-than 2.5Gb/s products, as well as wavelength multiplexing products. Oki's strengths lie in its abundant product lineup and volume production technology for photo diodes from 2.5Gb/s to 10b/s and 2.5Gb/s laser diodes.

Under the agreement, the two companies will integrate their wafer-process and volume-production technologies for laser diode chips, photo diode chips, modulators, and hybrid-functioned devices into NEL's production lines. They will enhance each product lineup by jointly developing new optical communications devices and by offering each product through OEM, which will result in reducing development time and redundant investment. In order to strengthen sales capabilities, NEL and Oki will also effectively use their sales channels to reinforce their respective activities. Through these measures, the two companies intend to increase their competitiveness and expand business.

While the two companies cooperate for the integration of wafer process and the effective use of sales channels, the two companies aim to extend the alliance range for further enhancement of their optical communications device business. This includes the study for the improvement of assembly process and the effective usage of mutual resources.

Outline of the alliance:

1. Integration of wafer process (chip production)
   The alliance integrates the two companies' production facilities, and prepares production lines at the NEL Ibaragi plant for joint operation.
2. Effective use of both companies' sales channels
   The alliance increases both companies' sales by expanding their product lineup and by using both companies' sales channels.
3. Joint product development
   The alliance effectively uses the two companies' technologies and know-how, through which they aim to improve product development efficiency as well as to decrease development time.
4. Possible expansion of the scope of the alliance
   The two companies will study the potential expansion of the alliance, including the integration of assembly processes and offshore manufacturing.

About Oki Optical Components

Building on Oki's century-long commitment to communications technologies and markets, Oki Optical Components designs and markets a broad line of fiber optic devices for telecommunications, data communications, and network systems. OOC's product lines include 10 to 40 Gbps GaAs ICs, lasers, and a variety of other photonic networking solutions. Formerly a division of Oki Semiconductor, OOC is headquartered in Sunnyvale, CA, and a subsidiary of Oki Components Company, which is a subsidiary of Oki Electric Industry Co, Ltd. Oki has ISO-9000-certified manufacturing facilities in Japan and Thailand. For more information, please go to www.okioptical.com.

For more information about Oki Semiconductor optical components Products, please contact:

Yudhi Trisno
Oki Semiconductor optical components
785 N. Mary Ave, Ste. 120
Sunnyvale, CA 94085
USA

Tel: (408)737-6264
Fax: (408)720-8965
Email

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