[September 2000]

Corning to invest more than $20 Million to increase Manufacturing Capacity of Liquid Crystal Devices

Corning Incorporated has announced it will invest more than $20 million to significantly increase its manufacturing capabilities for two PurePath^TM wavelength management products, based on liquid crystal technology. This expansion will increase the level of current capacity by a factor of six times for the PurePath Dynamic Spectral Equalizer and Wavelength Selective Switch products. Both products provide high channel-count bandwidth management, and extend the reach of long-haul and metro Dense Wavelength Division Multiplexing (DWDM) networks by improving signal quality.

"The level of functionality and performance provided by these liquid crystal devices has generated significant interest in the marketplace over a very short period of time," said Doug Eccleston, newly appointed business manager for Corning's Wavelength Management Products group. "Expanding our manufacturing capabilities will enhance Corning's ability to meet the demand for product samples while supporting early adopters of the technology."

"Corning's PurePath products have attracted attention by outperforming other liquid crystal-based products as well as devices based on alternative technologies," said John Bayne, Corning Wavelength Management Products commercial manager. "One of our U.S. customers successfully tested the PurePath Wavelength Selective Switch in a field trial. This product has also been used in a successful multi-terabit test-bed experiment in Europe."

The first phase of the expansion will increase capacity by a factor of three times at Corning's current manufacturing facility in Orange County, CA by the first quarter, 2001. That facility is in close proximity to Corning's Advanced Photonic Technologies, the organization that developed the liquid crystal-based products. The second phase of the expansion focuses on long term capacity in a new facility, with ramp-up scheduled for the second half of 2001.

Established in 1851, Corning Incorporated (www.corning.com) creates leading-edge technologies for the fastest-growing markets of the world's economy. Corning manufactures optical fiber, cable and photonic products for the telecommunications industry; and high-performance displays and components for television and other communications-related industries. The company also uses advanced materials to manufacture products for scientific, semiconductor and environmental markets. Corning's revenues in 1999 were $4.7 billion.

ENDS