Avanex Board of Directors Approves Reverse Split

Effective Date Expected to Be August 12, 2008
FREMONT, Calif.--(Business Wire)--
Avanex Corporation (NASDAQ:AVNX), a leader in telecommunication
components that enable next-generation optical networks, today
announced that its Board of Directors, pursuant to previously obtained
stockholder authorization, approved a reverse split of its common
stock at a ratio of 15-for-1, with a planned effective date of August
12, 2008. Accordingly, as of the effective date, each fifteen shares
of issued and outstanding common stock and equivalents will be
converted into one share of common stock. The reverse stock split will
be effected by the filing of a Certificate of Amendment to the
Company's Certificate of Incorporation with the Secretary of State of
the State of Delaware.

"Avanex is taking this action to encourage interest in our stock
on the part of certain brokerage houses and institutional investors
and to be in a better position to continue to meet the listing
criteria for trading on the Nasdaq Stock Market," said Giovanni
Barbarossa, the Company's Interim CEO. "Following the reverse split,
our stock will likely trade at a higher nominal price level," said
Barbarossa.

Avanex stockholders will receive instructions from their broker or
from Avanex's transfer agent, Computershare, containing the
appropriate procedures for turning in their old share certificates for
new, post-split share certificates. Fractional stockholdings will be
paid out in cash based on Avanex's closing stock price on the
effective date. Further information on the logistics regarding the
reverse split can be obtained by contacting Avanex.

About Avanex

Avanex Corporation meets the needs of fiber optic communications
networks for greater capacity, longer distance transmissions, improved
connectivity, higher speeds and lower costs. Our solutions enable
optical wavelength multiplexing, dispersion compensation, switching
and routing, transmission, and amplification, and include
network-managed subsystems. Avanex Corporation, incorporated in 1997,
is headquartered in Fremont, California, and maintains facilities in
New York, Florida, China, France, Italy, and Thailand. To learn more
about Avanex Corporation, visit our Web site at: www.avanex.com.

Forward-looking Statements

This press release contains forward-looking statements, including
statements regarding the timing of the Company's reverse stock split,
the performance of and interest in the Company's stock following the
reverse split and the ability of the Company to meet the Nasdaq's
listing criteria. Actual results could differ materially from those
projected in or contemplated by the forward-looking statements.
Factors that could cause actual results to differ include
unanticipated issues that would impact the expected timing of the
Company's reverse stock split, the existing and expected marketability
and liquidity of the common stock and prevailing market conditions and
the likely effect of a reverse split on the market price of the common
stock. Please refer to the risk factors contained in the Company's SEC
filings including the Company's Annual Report on Form 10-K filed with
the SEC on Sept. 7, 2007, Quarterly Report on Form 10-Q filed with the
SEC on May 2, 2008 and subsequent filings with the SEC.

Avanex Corporation
Brooke Deterline, 510-897-4188 (Investor Relations)
IR@Avanex.com

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