EXFO Acquiring Assets of gnubi Communications

QUEBEC CITY, Sept. 6 -- EXFO Electro-Optical Engineering Inc. has signed an agreement to purchase substantially all the assets of gnubi communications LP, including its technology, expertise, customer base and inventories, in a stock-and-cash deal. Consideration paid consists of $2.5 million in EXFO stock, $1.8 million in cash and a cash earn-out based on sales volume. The deal is expected to be neutral on a pro forma earnings per share basis in fiscal year 2003.

gnubi, a privately held company in Dallas, Texas, is a supplier of multichannel telecom and datacom testing.

"By significantly expanding our coverage of the protocol-layer test market, this acquisition strengthens EXFO's overall position as a global supplier of fiber optic test, measurement, monitoring and automation solutions," said Germain Lamonde, chairman, president and CEO of EXFO. "The gnubi acquisition will allow us to leverage our sales channels and technology in protocol, optical and physical-layer testing in order to offer new solutions to telecom and datacom system manufacturers."

For more information, visit: www.exfo.com