EMCORE Announces Expectations For Record Year End Revenue And Substantial Increases In 2001 Backlog

Source: Emcore

SOMERSET, NJ

Sharp Growth in Demand for Fiber Optic and Wireless Components to Drive Accelerated R&D Expenditures to Capitalize on New Market Opportunities

EMCORE to Raise Revenue Estimates for FY `01

EMCORE Corporation (Nasdaq: EMKR) today announced that it has accelerated its research and development programs for the Company s fiber optic and wireless divisions.

EMCORE will accelerate expenditures in research and development by approximately $15 million over initial estimates for fiscal year 2001.

These additional expenditures are being incurred in connection with the acceleration of EMCORE s array transceiver program, including pre-production costs, and development of new wireless and fiber optic products, including long wavelength VCSELs and photodetectors for Metro/Access markets, 2.5 gigabit per channel arrays and 10 gigabit serial devices for 10 Gigabit Ethernet applications. The array transceiver program is also being expanded to meet customer requests for a transponder product.

"Our decision to accelerate R&D investments in wireless and fiber optics was made in direct response to customer demand," commented Reuben F. Richards, Jr., President and CEO. "Based on customer feedback as well as industry projections for growth in these markets, we have accelerated our new product efforts and production capabilities to shorten time to market and achieve the long-term results our customers and shareholders expect of EMCORE. Our financial performance for fiscal 2000, which was driven by strong growth across all our product lines, ensures that we have the resources to make these investments. Additionally, given our strong backlog numbers and the projected revenue from our new products, we will raise revenue estimates for fiscal 2001."

Recent industry forecasts indicate that the market opportunity for high-speed optical transceivers, including 2.5 gigabit per channel arrays and 10 gigabit serial devices, will exceed $3.4 billion by the year 2004. EMCORE is alpha testing its new array transceiver and anticipates that prototype delivery will occur before the end of calendar 2000.

EMCORE has also achieved a strong increase in revenue, both for the quarter and the year ended September 30, 2000. Preliminary figures indicate that revenues for the quarter and the year increased approximately 135% and 79%, respectively, to approximately $34 million and $104 million. The anticipated revenue and backlog results for the year both represent new records. The Company will report a record backlog of approximately $125 million at September 30, 2000, an increase of 190% from September 30, 1999. In connection with the acceleration of the research and development effort for new fiber optic and wireless products, the Company has recorded an additional $7 million of non-recurring research and development costs that will be reflected in the fourth fiscal quarter of 2000.

"Our accelerated R&D investments build on those we made in our facilities and workforce in fiscal 2000," Richards added. "During the year, we expanded our Somerset, NJ and Albuquerque, NM facilities and hired approximately 250 new employees. We believe these investments are an essential component of our strategy for realizing record revenue and operating profitability in fiscal 2001."

Complete fourth-quarter and year-end results for EMCORE will be issued on November 15, 2000.

About EMCORE:

EMCORE Corporation offers a versatile portfolio of compound semiconductor solutions for the rapidly expanding broadband and wireless communications and solid state lighting markets. The Company s integrated solutions philosophy embodies state of the art technology, material science expertise and a shared vision of our customer s goals and objectives to be leaders and pioneers in the rapidly growing world of compound semiconductors. EMCORE s solutions include: optical components for high speed data and telecommunications; solar cells for global satellite communications; electronic materials for high bandwidth communications systems, such as Internet access and wireless telephones; MOCVD tools for the growth of GaAs, AlGaAs, InP, InGaAsP, GaN, InGaN, AlGaN, and SiC epitaxial materials used in numerous applications, including data and telecommunications modules, cellular telephones, solar cells and high brightness LEDs. For further information about EMCORE, visit http://www.emcore.com.

The information provided herein may include 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 relating to future events that involve risks and uncertainties. Actual operating results may differ materially from such forward-looking statements and are subject to certain risks, including risks arising from: cancellations, rescheduling or delays in product shipments; manufacturing capacity constraints; lengthy sales and qualification cycles; difficulties in the production process; changes in semiconductor industry growth, increased competition, delays in developing and commercializing new products, and other factors described in EMCORE s filings with the Securities and Exchange Commission. The forward-looking statements contained in this news release are made as of the date hereof and EMCORE does not assume any obligation to update the reasons why actual results could differ materially from those projected in the forward-looking statements.

Contact: EMCORE Corporation, Somerset Tom Werthan Tel: 732/271-9090 or Morgen-Walke Associates, Inc., New York Michele Katz/Randy Hecht/Cathy Dawson Press: Ann Marie Gaschler Tel: 212/850-5600