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Press Release -- May 20th, 2010
Source: Infinera
Tags: 100G, 40G, DWDM, Exchange, Video, Wavelength

Infinera Accelerates Next-Generation System Development

100G Coherent System Planned for 2012

SUNNYVALE, CA, May 20, 2010 (MARKETWIRE via COMTEX) --Infinera (NASDAQ:INFN, news, filings) is accelerating its product development plans for next-generation optical systems to take advantage of evolving market trends and technological advances in product development. The new product program includes plans for the shipment of systems based on 100 Gigabits/second (100G) coherent transmission in 2012 to meet, and accelerate, the growth in market demand for optical networks providing 8 Terabits/second (Tb/s) of capacity per fiber.

The new 100G systems will be based on Infinera's next-generation photonic integrated circuits (PICs) which integrate the functionality of hundreds of optical devices to provide 500 Gigabits/second (Gb/s) of optical capacity on a single pair of chips (500G PICs). These systems are designed to use coherent detection to deliver an optical system with ultra-long-haul reach, fiber capacity of 8Tb/s, and the disruptive economics of photonic integration. Infinera is also planning to add non-PIC based coherent capability to its DTN system in 2011, to meet the needs of customers who require a 40 Gigabits/second (40G) solution.

Growing Customer Interest in 100G Service providers worldwide have shown growing interest in 100G as the best step forward from today's 10G networks. Infinera believes that this interest in 100G is driven by the continuing growth in mobile, video, and other sources of network traffic, and a growing consensus that 100G networks will benefit from more rapid price reductions than the market has seen for 40G technology. According to Infonetics analyst Andrew Schmitt, the 100G market is forecasted to see mass deployment beginning in 2013. "We expect 100G coherent technology to be widely available in the 2013 timeframe at price points that make it very competitive with 40G coherent technology, and we expect that many service providers will opt to go directly from 10 Gigabits/second (10G) to 100G at that point, making 100G the predominant long-haul technology of the coming decade," Schmitt said.

Within Infinera, the product development team has been working on both 40G and 100G solutions, including key optical and electrical enabling technologies. The recent achievement of a series of engineering milestones, such as Infinera's recent successful transmission of a 100G signal over 1600 kilometers of fiber using coherent modulation technology, has enabled Infinera to accelerate its timetable for a 100G solution. The company believes that this demonstration shows that an Infinera 100G system, based on Infinera's unique 500G PICs, will be able to meet ultra-long-haul reach requirements while delivering a significant boost in fiber capacity at a better cost-per-bit.

"We expect that Infinera's 100G system will reach the market at a time that enables 100G mass adoption," said Infinera CEO Tom Fallon. "In addition, Infinera 100G networks will offer very significant competitive advantages. Advanced features like digital bandwidth management and Bandwidth Virtualization(TM), which customers expect from Infinera, will continue to deliver valuable benefits in our intelligent networks. We believe that traditional muxponder-based DWDM systems become even more inefficient when carrying a wide range of lower-speed services over 100G wavelengths."

Infinera's 40G Systems Infinera expects 40G demand to be limited, but believes a 40G solution may be required in the short term for certain applications needing additional fiber capacity, including terrestrial and submarine deployments. To meet those needs, Infinera will deliver 40G capability for the DTN next year. Infinera's 40G networks will offer all the benefits of Infinera's digital intelligence and a seamless transition from today's 10G networks.

Infinera believes its product development plan, including 40G and 100G networks, provides customers with the industry's best roadmap to accommodate future needs. For Infinera's customers, strong bandwidth growth creates the pressing challenge of expanding their networks while trying to maximize profitability amidst declining prices for telecom services. This new set of Infinera products is intended to enable service providers to expand their networks quickly and cost-effectively, while the disruptive economics of 500G PICs will help them generate better business results.

"Our mission at Infinera is to enable our customers to build and operate the world's best optical networks," said Mr. Fallon. "We believe that this product plan will give customers the networks they need to meet the challenges of the coming decade."

About Infinera Infinera provides Digital Optical Networking systems to telecommunications carriers worldwide. Infinera's systems are unique in their use of a breakthrough semiconductor technology: the photonic integrated circuit (PIC). Infinera's systems and PIC technology are designed to provide customers with simpler and more flexible engineering and operations, faster time-to-service, and the ability to rapidly deliver differentiated services without reengineering their optical infrastructure. For more information, please visit http://www.infinera.com/.

This press release contains certain forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties. These statements are based on information available to Infinera as of the date hereof; and actual results could differ materially from those stated or implied, due to risks and uncertainties. Forward-looking statements include statements regarding Infinera's expectations, beliefs, intentions or strategies regarding the future, including: our plans for the shipment of our systems based on 100 Gigabit/second (100G) coherent transmission in 2012 to meet, and accelerate, the growth in market demand for optical networks providing 8 Terabits/second of capacity per fiber; our plans to deliver a 40G based solution for our DTN product next year; our ability to develop next-generation photonic integrated circuits (PICs) which integrate the functionality of hundreds of optical devices to provide 500 Gb/s of optical capacity on a single pair of chips; our belief in the benefits that our 100G system will offer, including the ability to provide ultra-long-haul reach, fiber capacity of 8 Terabits/second, the ability to deliver a significant boost in fiber capacity at a better cost-per-bit and the ability to provide advanced features like digital bandwidth management and Bandwidth Virtualization(TM); our belief in the benefits that our 40G capability for the DTN will offer, including, all the benefits of Infinera's digital intelligence and a seamless transition from today's 10G networks; our belief regarding the reasons for the interest in, and the evolution of, the 40G and 100G markets, and the timing of the adoption of the 100G market; our belief that our 100G system will reach the market at a time that enables 100G mass adoption; our belief that traditional muxponder-based DWDM systems become even more inefficient when carrying a wide range of lower-speed services over 100G wavelengths; our belief that our product development plan, including 40G and 100G networks, provides customers with the industry's best roadmap to accommodate future needs and gives customers the networks they need to meet the challenges of the coming decade. Such forward-looking statements can be identified by forward-looking words such as "anticipated," "believed," "could," "estimate," "expect," "intend," "may," "should," "will," and "would" or similar words. The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include aggressive business tactics by our competitors, our dependence on a single product, our ability to protect our intellectual property, claims by others that we infringe their intellectual property, and our ability to respond to rapid technological changes, and other risks that may impact any of the group's business are set forth in their annual reports on Form 10-K filed with the SEC on March 1, 2010, as well as subsequent reports filed with or furnished to the Securities and Exchange Commission. These statements are based on information available to us as of the date hereof and we disclaim any obligation to update the forward-looking statements included in this press release, whether as a result of new information, future events or otherwise.

For media and analysts:
Media:
Jeff Ferry
Tel. (408) 572-5213
jferry@infinera.com

Investors:
Bob Blair
Tel. (408) 716-4879
bblair@infinera.com

SOURCE: Infinera

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