GigOptix Announces Companywide Salary Reduction Plan

PALO ALTO, Calif.--(Business Wire)--
GigOptix, Inc. (OTCBB:GGOX), a leading provider of electronic engines for the
optically connected digital world, today announced the implementation of a
companywide salary reduction plan as part of the Company`s ongoing efforts to
reduce operations expenses. The salary reduction plan is designed to reduce
labor costs and improve the Company`s financial performance in the face of an
uncertain economic environment.

Under the plan, the salary of Dr. Avi Katz, the Company`s Chief Executive
Officer, will be reduced by 18%; the salaries of the Company`s other executive
officers will be reduced by 15%; and the salaries of the Company`s other
employees will be reduced by 10%. In addition, each employee of the Company will
receive a special grant of stock options equal to 10% of their outstanding
options in recognition of their foregone salary. The salary reduction went into
effect March 23, 2009. This salary reduction plan is expected to result in
expense savings of over $900,000 on an annualized basis.

"I am very proud of the effort of all of our employees and our Company`s
continued performance in this unprecedented and challenging environment," said
Dr. Avi Katz. "Fiscal responsibility is an important key to our ongoing success
and cost reduction is imperative in today`s climate to ensure that we maintain
the strongest financial position possible for our shareholders. By preserving
the personnel who are instrumental to our organization and asking everyone to
take less, starting at the top, we can continue to focus on meeting our short-
and long-term financial goals."

About GigOptix Inc.

GigOptix is a leading fabless manufacturer of electronic engines for the
optically connected digital world. The Company offers a broad portfolio of high
speed electronic devices including polymer electro-optic modulators, modulator
drivers, laser drivers and TIAs for telecom, datacom, Infiniband and consumer
optical systems, covering serial and parallel communication technologies from 1G
to 100G. For more information, please visit www.GigOptix.com.

Forward-Looking Statements

This release may contain "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. All statements by GigOptix regarding its expected
financial position, revenues, cash flow and other operating results, business
strategy, financing plans, forecasted trends related to the markets in which it
operates, and similar matters are forward-looking statements. GigOptix's actual
results could be materially different from its expectations because of various
risks to its business. Many of these risks are discussed under the caption "Risk
Factors" in GigOptix' registration statement on Form S-4 on file with the SEC.
Except for any obligation to disclose material information under the Federal
securities laws, GigOptix undertakes no obligation to release publicly any
revisions to any forward-looking statements to reflect events or circumstances
after the date of this document.

GigOptix Inc.
Parker Martineau, 650-424-1937 ext. 102 (Media)
Corporate Communications Manager
pmartineau@gigoptix.com
or
Alliance Advisors, LLC
Alan Sheinwald, 914-669-0222 (Investor Relations)
President
asheinwald@allianceadvisors.net

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