EMCORE's New Product Technology Drives Growing Demand and Increased Company Orders in Q2

Source: EMCORE Corporation

Optical Device Division Key to Company Growth

Somerset, NJ. EMCORE Corporation (NASDAQ: EMKR), a leading provider of semiconductor technologies for global communications applications, reported that bookings for the first two months of the current quarter are running substantially ahead of the pace set at this time last year and total $41.1 million across all product lines.

As a result of the increased demand for new datacom and telecom products, nearly half of EMCORE s material products bookings are attributable to optical device products, where growth has increased more than 10-fold from the second fiscal quarter in 2000. The Company s Optical Device Division, located in Albuquerque, N.M., offers VCSEL (Vertical Cavity Surface Emitting Laser) products including bare die, arrays, packaged components, and optical subassemblies for integration into Gigabit Ethernet, Fibre Channel, Infiniband(SM), Wave Division Multiplexing (WDM), ATM systems, and high speed telecom applications that encompass very short reach OC-192 and high speed optical backplanes.

"We anticipate that the strong demand for EMCORE s optical device products will continue to grow as bandwidth requirements increase and next generation datacom and telecom networks emerge," said Reuben F. Richards, Jr., President and CEO. "Our recent bookings demonstrate that EMCORE continues to have positive customer response to our entire datacom and telecom product portfolio. In addition to the products currently driving revenue growth, the Company plans several new product introductions in the next month, further expanding our presence in the accelerating fiber optic markets."

According to ElectroniCast Corp., an independent market research firm located in San Mateo, CA, the VCSEL-based transceiver market will continue to rapidly expand, reaching $3.4 billion in 2004 and continuing on to $14.1 billion in 2009. The drivers for the dynamic growth of optical device products, as reported by ElectroniCast, are the rapid advancement of datacom standards, penetration of the telecom market, new opportunities within Infiniband switch fabrics, and the aggressive deployment of intra-system array-VCSEL interconnects.

EMCORE s 2.5 Gbps 850 nm oxide VCSEL offers the speed, performance, and reliability demanded of next generation data communications networks. This product technology forms the critical high-speed optical link for customers next generation serial and parallel optical transceivers for OC-192 and other markets. These VCSELs provide low current thresholds and smoother slope efficiencies to meet performance requirements of existing and future Gigabit Ethernet standards.

The Company also provides 850 nm 1x4 and 1x12 Oxide VCSEL arrays and high-speed gallium arsenide (GaAs) photodetector arrays, capable of data rates up to 3.125 Gbps. These arrays are ideal for providing high-speed optical interconnects between switches routing Internet and electronic data by enabling faster data transmission without increasing the size of the switch.

Additionally, EMCORE s capital equipment division continues to receive increasing orders for its Discovery LDM, the next generation production platform for the manufacture of high quality laser-based products. "By enabling customers to accurately measure and control wafer temperature, the LDM achieves unparalleled yield, material quality and device performance," Mr. Richards stated. Strategies Unlimited, an independent market research firm in Mountainview, CA, notes that the worldwide market for laser diodes will reach $5.35 billion in 2004, for a compounded growth rate of over 22% per year. Laser diodes are key components in local and long-distance telecom and datacom networks, as well as in cable television distribution systems.

EMCORE Corporation offers a versatile portfolio of compound semiconductor products 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 products 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, InGaP, InGaAlP, 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: Corporate Contact: EMCORE Corporation, Somerset Tom Miehe Tel: 732/271-9090 Fax: 732/271-9686 Email: info@emcore.com or Press Contact: Richartz Fliss Clark & Pope, Denville Debra Norman Tel: 973/627-8180 Fax: 973/627-8410 Email: norman@rfcp.com