Bookham Technology to Acquire New Focus

OXFORDSHIRE, England & SAN JOSE, Calif., Sept. 22 -- Bookham Technology plc, a provider of optical components, modules and subsystems for fiber optic communication networks, has agreed to acquire New Focus Inc., a provider of photonics and microwave solutions to non-telecom diversified markets, in a deal estimated to be worth approximately $190.5 million.

Bookham said it expects to issue approximately 84 million shares, taking into account the exercise of assumed New Focus stock options, to New Focus stockholders as consideration for the proposed acquisition. Immediately prior to the completion of the acquisition, New Focus stockholders will receive a cash distribution of approximately $140 million. This cash distribution will be funded from New Focus's existing cash balance which, as of June 29, 2003, was $252 million.

The proposed transaction, which has been unanimously approved by the boards of directors of both companies, is a continuation of Bookham’s consolidation strategy. Bookham said it expects the acquisition to increase its non-telecom business, diversify its customer base, contribute low-cost manufacturing facilities and provide significant additional cash resources.

New Focus, based in San Jose, Calif., employs approximately 200. It also has a manufacturing facility in Shenzhen, China. It produces tunable lasers, microwave RF amplifiers, optoelectronics, photonics subsystems and photonic tools for the semiconductor, defense, research, industrial, biotech/medical and telecom test and measurement industries.

For more information, visit: www.bookham.com