EMCORE Corporation to Acquire Intel's Enterprise and Storage Optical Assets, Intel...

EMCORE Corporation to Acquire Intel's Enterprise and Storage Optical Assets, Intel Connects Cables Business

SANTA CLARA, Calif. & ALBUQUERQUE, N.M.--(Business Wire)--
EMCORE Corporation (NASDAQ:EMKR) announced a definitive agreement
with Intel Corporation to acquire the enterprise and storage assets of
Intel's Optical Platform Division as well as the Intel(R) Connects
Cables business. EMCORE will issue 3.7 million shares of restricted
stock for the acquisition, with certain adjustments based on EMCORE's
stock price twelve months after the closing of the transaction. The
assets include intellectual property, inventory, fixed assets and
technology relating to optical transceivers for enterprise and storage
customers, as well as optical cable interconnects for high-performance
computing clusters. The transaction is expected to close in the second
quarter of this year.

The acquisition further enhances EMCORE's presence in the optical
communications market segments, especially in the areas of 10 Gigabit
Ethernet and storage area network transceivers. This allows EMCORE to
provide a more complete product offering to a broad range of
customers.

"Following the successful acquisition of the telecom-related
assets of Intel's Optical Platform Division, this second acquisition
from Intel enables EMCORE's Fiber Optics to be a significant supplier
for both telecom and datacom products," said Reuben F. Richards,
Executive Chairman, EMCORE. "This acquisition will provide additional
manufacturing efficiencies through economies of scale and vertical
integration, benefiting our enterprise, storage, telecom, cable and
high-performance computing customers. EMCORE projects this asset will
add $45 million in revenue for the next 12 months, increase gross
margin from 23 to 29 percent and be accretive to earnings. The Intel
Connects Cables business provides an innovative solution for
high-performance computing cluster interconnect applications, using
embedded parallel optical transceivers with a multi-mode fiber ribbon.
EMCORE expects this business to have gross margins exceeding 50% and
to be the fastest growing segment of the acquired assets."

"Customers are driving consolidation and vertical integration in
the optical communications market segments," said Doug Davis, Vice
President, Intel Digital Enterprise Group, and General Manager,
Embedded and Communications Group. "We will work together to complete
a smooth transition of these businesses, building upon the experience
in the telecom optical components acquisition."

The sale of these optical-related assets will enable Intel to
focus its investments on core communications and embedded market
segments in line with its platform strategies. Intel will continue its
efforts on the universal serial bus 3.0 specification, which is slated
to support optical, and silicon photonics research and development.

About Intel

Intel, the world leader in silicon innovation, develops
technologies, products and initiatives to continually advance how
people work and live. Additional information about Intel is available
at www.intel.com/pressroom.

About EMCORE

EMCORE is a leading provider of compound semiconductor-based
components and subsystems for the broadband, fiber optic, satellite
and terrestrial solar power markets. EMCORE has two operating
segments: Fiber Optics and Photovoltaics. EMCORE's Fiber Optics
segment offers optical components, subsystems and systems that enable
the transmission of video, voice and data over high-capacity fiber
optic cables for high-speed data and telecommunications, cable
television (CATV) and fiber-to-the-premises (FTTP) networks. EMCORE's
Photovoltaics segment provides solar products for satellite and
terrestrial applications. For satellite applications, EMCORE offers
high-efficiency compound semiconductor-based gallium arsenide (GaAs)
solar cells, covered interconnect cells (CICs) and fully integrated
solar panels. For terrestrial applications, EMCORE offers its
high-efficiency GaAs solar cells for use in solar power concentrator
systems. For specific information about EMCORE, its products or the
markets it serves, please visit www.emcore.com.

Forward-looking statements:

The information provided herein may include forward-looking
statements within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934. Such
forward-looking statements include, but are not limited to, any
statement or implication that the transaction described herein will
actually close and will produce the anticipated results described for
EMCORE. Such forward-looking statements involve risks and
uncertainties that, if realized, could materially impair EMCORE's
results of operations, business, and financial condition. These risks
and uncertainties include, but are not limited to, (a) the ability of
both parties to satisfy the conditions necessary for the closing of
the transaction; (b) the ability of EMCORE to successfully integrate
the purchased business into its operations; (c) the ability of EMCORE
to retain critical employees of the purchased business; the acceptance
by INTEL's customers of EMCORE as a supplier; (d) the ability to
transition certain key agreements, including lease arrangements; (e)
cancellations, rescheduling or delays in product shipments; (f)
manufacturing capacity constraints; (g) possibly lengthy sales and
qualification cycles; (h) changes in telecom industry growth or
product or technology requirements; (i) increased competition; (j)
delays in developing and commercializing new products; and (k) other
factors discussed from time to time in reports filed by the Company
with the Securities and Exchange Commission. The forward-looking
statements contained in this news release are made as of the date
hereof and EMCORE does not assume any obligation to update the reasons
why actual results could differ materially from those projected in the
forward-looking statements.

Intel and the Intel logo are trademarks of Intel Corporation in
the United States and other countries.

-- Other names and brands may be claimed as the property of
others.

Intel
Amy Kircos, 480-552-8803
amy.kircos@intel.com
or
EMCORE
Adam Gushard, 505-332-5000
adam_gushard@emcore.com

Copyright Business Wire 2008