Fiberoptic Equipment Makers JDS, E-Tek Merge

JDS Uniphase Corp., a leading maker of fiber optic equipment, has announced plans to buy E-Tek Dynamics Inc. in a deal valued at US$15 billion.

JDS Uniphase, which develops and makes a range of fiber-optic products, will pay 1.1 shares for each share of E-Tek common stock, JDS Uniphase said in a release yesterday.

The two companies' combined manufacturing capacity and product innovation capability will strengthen their ability to meet customer expectations, Jozef Straus, co-chairman, president and chief operating officer of JDS Uniphase, said in the release.

JDS Uniphase products are used by system manufacturers worldwide to develop advanced optical networks for the telecommunications and cable television industries. E-Tek Dynamics is involved in the design and manufacture of passive components and modules for fiber-optic systems, and its wave-length division multiplexers are designed to increase the bandwidth capacity of new and existing fiber-optic networks.

The acquisition comes as service providers seek faster deployment of fiber-optic systems in their networks to help meet an explosive demand for bandwidth. This, in turn, has meant systems manufacturers are looking to optical component and module suppliers to expand production, shorten development cycles and provide new products and functionalities, JDS Uniphase said.

The agreement, which the companies classify as a merger for accounting purposes, is subject to the approval of E-Tek Dynamics stockholders and government regulators. Following completion of the transaction, E-Tek Dynamics will operate as a wholly owned subsidiary of JDS Uniphase.

JDS Uniphase, in San Jose, California, and Nepean, Ontario, can be reached at +1-408-434-1800 or found on the Web at http://www.jdsunph.com; E-Tek Dynamics, in San Jose, can be reached at +1-408-546-5000 or found on the Web at http://www.e-tek.com.

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