Finisar to Acquire Honeywell VCSEL Business

SUNNYVALE, CA, Jan. 26 -- Finisar Corp. and Honeywell International Inc. announced today that they have entered into a definitive agreement in which Finisar has agreed to acquire Honeywell's VCSEL Optical Products business, based in Richardson, Texas, for approximately $75 million in cash. The transaction is subject to applicable regulatory approvals and other closing conditions and is expected to close in the first calendar quarter of 2004. Finisar said it expects to continue to operate the business at the Richardson facility.

Honeywell's VCSEL Optical Products business manufactures VCSELs, or vertical cavity surface-emitting lasers, which are primarily used in high-speed fiber optic data communications and position-sensing applications. VCSELs are optical components that deliver coherent light with high efficiency and can be modulated at high speeds. Finisar provides fiber optic subsystems and network performance test systems that enable high-speed data communications for networking and storage applications.

The VCSEL Optical Products business generated approximately $36 million in revenues during 2003, including approximately $9 million from components supplied to Finisar. Finisar said it expects the business to contribute approximately $25-$30 million in revenues during the first year of operation.

Honeywell VCSEL Optical Products and Finisar have had a longstanding relationship since 1996, when Honeywell introduced the first VCSEL component for fiber optic data communications. Finisar was one of the first customers to adopt this new technology, which helped enable the development of high-speed, highly reliable and cost-effective Gigabit fiber optic transceivers for links spanning less than 300 meters. These products are typically used in local area networks and storage area network applications.

For more information, visit: www.finisar.com