Ciena Announces Intent to Acquire World Wide Packets

LINTHICUM, Md.--(Business Wire)--Ciena(R) Corporation (NASDAQ:CIEN), the network specialist, today
announced that it has reached a definitive agreement to acquire
privately-held World Wide Packets. Based in Spokane Valley, Wash.,
World Wide Packets is a leading supplier of solutions for enabling the
cost-effective delivery of a wide variety of Carrier Ethernet-based
services.

"As part of our strategy to leverage Ethernet as the vehicle for
network convergence to optimize the cost and efficiency of network
resources, the addition of World Wide Packets' technology expands our
ability to address the access and aggregation tiers of the network
with simplified IP/Ethernet service architectures," said Gary Smith,
president and CEO of Ciena. "Bringing to our FlexSelect(TM)
Architecture these flexible, highly-scalable Carrier Ethernet service
delivery platforms further advances us in the high-growth business
Ethernet services market and strengthens our position in the emerging
wireless backhaul space."

"Since the inception of the company, it has been the goal of World
Wide Packets to define and provide the next-generation of Carrier
Ethernet solutions, and today's news is conclusive validation of our
approach," said Matthew Frey, president and COO of World Wide Packets.
"Our expertise in True Carrier Ethernet(TM) combined with the power
and flexibility of Ciena's FlexSelect Architecture provides customers
with a compelling and cost-effective solution for delivering Carrier
Ethernet-based services."

World Wide Packets has shipped more than 70,000 units to 100+
customers in 25 countries. Customers include ntl:Telewest, KPN and
several top-tier Multiple System Operators (MSOs) in North America.
Deployments span a range of Carrier Ethernet business services and
Carrier Ethernet transport services, which include wireless backhaul
and wholesale applications.

Ciena also announced today it has been awarded a multi-year
contract with AT&T to supply the global carrier with these platforms.

The Carrier Ethernet Market

Industry analyst firm Infonetics Research forecasts worldwide
revenue for Ethernet services to surpass $25 billion in 2010, growing
at a 5-year CAGR of 28 percent, representing a five-year total of
nearly $87 billion. Growth is being driven by the growing migration
from legacy services to Ethernet-based services across enterprise
segments.

"Now more than ever, network operators are seeking to drive down
network costs and complexity while boosting capacity, and they are
increasingly turning to Ethernet as the solution of choice for
achieving those goals," said Michael Howard, principal analyst,
Infonetics Research. "In our bandwidth-hungry world, simplicity, cost
efficiency and flexibility are more than just marketing cliches, they
are the hallmarks of today's Carrier Ethernet networks. Pairing with
World Wide Packets makes a lot of sense for Ciena, as it nicely
enhances the performance-grade Ethernet capabilities of the FlexSelect
Architecture."

World Wide Packets Portfolio Overview

World Wide Packets designs products for the access and aggregation
tiers of the network. Typically deployed from the metro edge to the
customer edge, the platforms provide the resiliency, flexibility and
scalability required to deliver the next generation of Carrier
Ethernet-based services.

The portfolio is comprised of the following:

-- Purpose-built network devices that fall into three product
families - Service Aggregation Switches (SAS), Service
Concentration Switches (SCS) and Service Delivery Switches
(SDS);

-- A common operating system - LightningEdge Operating System
(LE-OS); and,

-- A suite of network management tools for integrated service
activation - Ethernet Services Manager (ESM).

Transaction Terms and Timing

Under the terms of the acquisition agreement, World Wide Packets
will merge with a wholly-owned subsidiary of Ciena, and all
outstanding shares of World Wide Packets common and preferred stock,
including employee stock options and warrants (which will be assumed
by Ciena), will be exchanged for approximately $200 million in cash
and 3.4 million shares of Ciena common stock. In addition, Ciena will
assume up to $15 million in outstanding World Wide Packets debt. Based
on the closing price of Ciena's stock on Friday January 18, 2008, of
$26.52, the aggregate value of the shares to be issued by Ciena is
approximately $90 million.

This transaction is subject to various conditions and approval by
appropriate government agencies. The boards of directors of both Ciena
and World Wide Packets have approved the transaction. It is expected
that this transaction will close during Ciena's second quarter of
fiscal 2008.

Following completion of this transaction, World Wide Packets will
continue to operate from its Spokane Valley, Wash. and San Jose,
Calif. locations.

Morgan Stanley served as financial advisor to Ciena on this
transaction. Goldman Sachs served as financial advisor to World Wide
Packets.

Live Conference Call/Web Broadcast

Ciena will host a brief conference call about its intent to
acquire World Wide Packets with investors and financial analysts
today, Tuesday, January 22, 2008 at 5:15 p.m. (Eastern). The
teleconference can be joined by dialing 913-312-1448 and using
passcode "Ciena." A limited number of dial-in lines will be made
available. A live broadcast of the discussion will also be available
via Ciena's homepage at www.ciena.com. An archived version of the
discussion will be available shortly following the conclusion of the
live broadcast on the Investor Relations page of Ciena's website at:
www.ciena.com/investors.

About Ciena

Ciena specializes in network transition. We provide the flexible
platforms, intelligent software and professional services to
build converged networks for enhanced services and applications. With
a growing global presence, Ciena leverages its heritage of practical
innovation to deliver maximum performance and economic value in
communications networks worldwide. For more information, visit
www.ciena.com.

About World Wide Packets

World Wide Packets is a leading provider of Carrier Ethernet
solutions that allow broadband service providers and
telecommunications service providers to realize a new level of speed
and agility in the deployment of revenue generating Ethernet services.
With World Wide Packets' LightningEdge product family, providers can
address the demand with their growing customer base by fully
leveraging the power, flexibility and economies of Ethernet
technology, while dramatically reducing the CapEx and OpEx of existing
legacy networks. Only World Wide Packets offers the QoS, scalability,
reliability and manageability necessary to making True Carrier
Ethernet services such as IPTV, VoIP, mission critical data and
wireless transport a reality. For more information on World Wide
Packets, please visit www.wwp.com.

Note to Ciena Investors

This press release contains certain forward-looking statements
based on current expectations, forecasts and assumptions that involve
risks and uncertainties. These statements are based on information
available to the Company as of the date hereof; and Ciena's actual
results could differ materially from those stated or implied, due to
risks and uncertainties associated with its business, which include
the risk factors disclosed in its Report on Form 10-K, which Ciena
filed with the Securities and Exchange Commission on December 27,
2007. Forward-looking statements include statements regarding Ciena's
expectations, beliefs, intentions or strategies regarding the future
and can be identified by forward-looking words such as "anticipate,"
"believe," "could," "estimate," "expect," "intend," "may," "should,"
"will," and "would" or similar words. Ciena assumes no obligation to
update the information included in this press release, whether as a
result of new information, future events or otherwise.

Ciena Corporation
Press Contact:
Nicole Anderson, 410-694-5786
pr@ciena.com
or
Investor Contact:
Suzanne DuLong, 888-243-6223
ir@ciena.com

Copyright Business Wire 2008