EMCORE Corporation Announces Fourth Quarter and Year-End Results

Fourth quarter revenues increase 41% to $48 million

Record fiscal year revenues exceed $185 million after adoption of SAB 101, an annual increase of 77%

Somerset, NJ. EMCORE Corporation (NASDAQ: EMKR), a leading provider of semiconductor technologies for global communications applications, today announced financial results for the fourth quarter and fiscal year ended September 30, 2001.

Revenues for the quarter ended September 30, 2001 were $48 million, up 41% compared to revenues of $34 million in the corresponding quarter of fiscal year 2000. After an unfavorable revenue deferral of $5.8 million at September 30, 2001 attributable to the adoption of SAB 101, revenues were up 77% to $185 million in fiscal year 2001 from $105 million reported in the prior year.

Gross profit for the quarter ended September 30, 2001 was $16 million, an increase of 11% compared to $14 million reported in the corresponding quarter of fiscal 2000. The gross margin was impacted due to a $2.4 million inventory charge primarily related to slow-moving and obsolete inventories. On an annual basis, gross profit was $70 million, an increase of $27 million, or 62%, from the $43 million achieved in the prior year.

EMCORE CEO and President, Reuben F. Richards, commented, "The Company achieved record annual revenues for a third consecutive year, which is a testament to the strength of our products and technology in light of the past six months of turbulence and uncertainty in the economy. We believe that the restructuring actions implemented during the past several months will result in annual operating savings of approximately $16 million or 20% as compared to fiscal 2001. Even in the current economic climate we see some very positive signs for a number of our product lines in fiscal 2002. The Company also has a strong balance sheet and over $145 million in cash and marketable securities, which positions us to take advantage of market opportunities."

Operating expenses for the quarter ended September 30, 2001 decreased $2 million, or 7%, from the corresponding quarter of fiscal 2000. Net income for the quarter including non-recurring items was $788,000 or $0.02 per basic and diluted share, compared to a net loss of $13 million, or ($0.39) per basic and diluted share in the comparable prior year period. On an annual basis, operating loss decreased $2 million, or 10%, from the prior year. Net loss for the year including non-recurring items decreased over 50% to $12 million, or ($0.36) per basic and diluted share, compared to a net loss of $25 million, or ($0.82) per basic and diluted share. During the quarter ended September 30, 2001, the Company recognized a gain from the sale of its interest in Uniroyal Optoelectronics, LLC.

EMCORE also reiterated estimates for fiscal year 2002. Based on current market conditions, revenues for fiscal 2002 are expected to decrease 15%-20% as compared to fiscal 2001. The Company anticipates that first quarter revenues will be in the $20-$25 million range, reflecting a one quarter delay in customer deployment of communications networks using EMCORE s newly introduced fiber optic transponders and transceivers and the result of customer cancellations and deferrals on MOCVD equipment.

Recent Developments and Highlights EMCORE was named one of New Jersey s 50 Fastest Growing Technology Companies. For the third straight year, Deloitte & Touche named EMCORE to the "New Jersey Technology Fast 50" program, which ranks the 50 fastest growing technology companies in the state.

EMCORE announced the launch of a new 300 pin MSA (multi source agreement) compliant transponder module to provide very short reach interconnections over parallel fiber links at SONET OC-192 data rates. The new module provides a cost effective alternative to more costly, comparable serial interconnects. EMCORE also brings to market a "Small Form Factor" (SFF) version of the 300-pin VSR1 OC-192 Transponder.

EMCORE signed an agreement with LumiLeds Lighting, a joint venture between Agilent Technologies and Philips Lighting, for the supply of MOCVD (metallorganic chemical vapor deposition) tools to be used in the production of high brightness gallium nitride (GaN) light emitting diodes (LEDs). LumiLeds Lighting is an industry leader in the LED market, which has experienced a growth rate exceeding 58 percent annually during the past five years.

EMCORE announced the commercial production of its new 15 Gbps parallel optical interconnect for high-speed data links, very short reach OC-192 optical links, and board-to-board and shelf-to-shelf high-speed interconnects for optical backplanes. This technology from EMCORE exemplifies the new age of optical interconnects for switches and routers for datacom and telecom equipment manufacturers.

Blaze Network Products and Cognet MicroSystems, a division of Intel, selected EMCORE s Coarse Wavelength Division Multiplexing (CWDM) VCSELs for high-speed data communications. With these VCSELs, Blaze plans to be the first to market with the smallest pluggable 10 Gbps transceiver in the industry. Cognet will use the short wavelength VCSELs for extending the reach of multimode fibers.

EMCORE will discuss these results on a conference call tomorrow, November 29, 2001 at 9:00 a.m. EST. To participate in the call, U.S. and international callers should dial 416-646-3096. A replay of the call will be available beginning Thursday, November 29, 2001 at 11:30 a.m. EST until Thursday, December 6, 2001 at 11.59 p.m. EST. The replay call-in number is 416-640-1917 and the access code is #150573. The Company will also web cast the call via the web site at http://www.emcore.com. Please go to the site beforehand to download any necessary software for viewing.

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 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, 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. Words such as "expects," "anticipates," "intends," "plans," "believes," and "estimates," and variations of these words and similar expressions, identify these forward looking statements. 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 Tom Werthan Tel: 732/271-9090 or T T Communications Victor Allgeier Tel: 212/794-1050