Corning Disputes 'Dumping' Allegation

CORNING, N.Y., June 16 -- Corning Inc. announced today it has received a preliminary determination from the Ministry of Commerce (MOC) of the People's Republic of China alleging Corning "has dumped certain single-mode optical fiber products exported from the US into China and caused material injury to the Chinese domestic producers."

Nine other major fiber producers, from Japan and Korea, were included in the action. The MOC initiated the anti-dumping investigation last July, alleging that foreign products were being imported and sold at lower prices than the market conditions justified and that Chinese domestic producers were injured as a result. The investigation was based on a complaint filed by two Chinese fiber manufacturers.

Corning said the preliminary determination will not affect its fiber products produced by Shanghai Fiber Optics Co. Ltd., a Shanghai-based subsidiary of Corning Inc.

"Corning is not able to estimate the impact of this preliminary determination on its fiber export business to China, but if the ruling holds it could have a significant negative impact on the company's ability to export fiber into China," the company said in a statement.

Corning said it "is extremely disappointed in the preliminary determination" and that it will work with the MOC to reach a final determination.

"Corning believes that it has not dumped optical fiber into China and that the company has not caused injury to the Chinese domestic producers," said Robert B. Brown, senior vice president and general manager, Corning Optical Fiber. "We remain committed to the Chinese optical fiber market and to maintaining our strong customer relationships within the region," he said.

Corning said representatives from the MOC will travel to the US to meet with Corning officials to verify the information provided by Corning in its defense. The MOC will then provide a final determination, which Corning said it expects to receive by the end of this year. If the final determination is adverse, Corning said it may be able to appeal to the MOC or through the Chinese legal system.

On the basis of the preliminary determination, Chinese importers of certain Corning single-mode optical fiber products will be required to make cash deposits of 16 percent of the purchase price to Chinese customs authorities.

Corning's fiber export revenues to China currently are approximately 6 percent of its optical fiber and cable revenues. Corning said the impact of any potential loss of fiber export volume to China on the company's expected earnings per share should be less than $0.01 in the second half of 2004.

For more information, visit: www.corning.com