February 13, 2001

Finisar Announces 10-GigE Serial Optical Transceivers; Revolutionary Technology Offers Significant Cost Savings

SUNNYVALE, Calif.--Feb. 13, 2001--Finisar Corporation (Nasdaq: FNSR), a leading provider of gigabit fiber optic solutions for high-speed data networks, announces FTRX(TM), the industry's first 10-Gigabit Ethernet serial optical transceivers. Finisar's FTRX family has a smaller footprint than traditional telecom devices, and provides significant cost savings to networking and telecommunications equipment manufacturers. Finisar has already taken orders for FTRX, with deliveries expected to begin in the next several weeks.

"In terms of cost, the use of high-speed serial transmission wins every time over wavelength division multiplexing (WDM)," said Jerry Rawls, Finisar's President and CEO. "Four channel 2.5 Gb/s WDM solutions for 10 Gb/s requires more components and complexity than a single high-speed serial transmission link. The cost savings are especially important in upgrading metropolitan area networks (MANs), where a different set of economics apply, compared to long-haul wide area networks (WANs)."

"Interface speeds of 10 Gb/s are critical for both current and evolving network architectures," commented Tracey Vanik, technical director at RHK, Inc. "True 10 Gig transmission reduces the number of optical components required to achieve capacity - one laser instead of four - and potentially reduces the number of associated signal processors as well."

"Finisar's FTRX is a forward-looking family of products enabling networking and telecommunications equipment manufacturers to provide new, cost-effective switches, hubs and optical transmission systems, which will be used in upgrading MANs," Rawls added.

To transmit signals at these higher data rates, traditional telecommunications devices either use lasers in combination with external modulators, or multiplex four lasers, each operating at 2.5 Gb/s. The FTRX is a breakthrough product line that can transmit and receive at bit rates up to 10.7 gigabits per second (Gb/s) by relying on a single 1310nm distributed feedback laser (DFB) or 850nm vertical cavity emitting laser (VCSEL) in conjunction with cutting-edge high speed optics and Finisar's proprietary integrated electronics.

The FTRX product line will transmit and receive data traffic for Fibre Channel, Ethernet and SONET standards. The current version of the FTRX product uses a 300-pin connector. Future additions to the product line, which will be introduced during the next few months, will include versions with a 200-pin connector, a 50-pin connector for the 10-Gigabit Ethernet "XAUI" interface and a SONET OC-192 transponder for telecom applications.

The FTRX family of transceivers includes the same high-performance features that have made Finisar an industry leader, such as very low jitter, wide open "eye patterns", and exceptional performance in FCC electromagnetic interference compliance tests. The new transceiver complies with Clauses 51 and 52 of IEEE P802.3ae Draft 2.0 (10 Gigabit Ethernet) and with the physical form factor defined by the MSA for the 300-pin OC-192 Transponder. The FTRX operates at 2.5 watts including power needed for multiplexing and demultiplexing. Initial versions of the FTRX will transmit at 1310nm over distances up to 10Km.

The FTRX family is priced at $1,000-$2,000 depending on volume.

About Finisar
Finisar Corporation (Nasdaq: FNSR) is a leading provider of fiber optic subsystems and network performance test systems which enable high-speed data communications over Gigabit Ethernet local area networks (LANs), Fibre Channel storage area networks (SANs), metropolitan data network applications (MANs), and CATV. The Company is focused on the application of digital fiber optics to provide a broad line of high-performance, reliable, value-added optical subsystems for networking and storage equipment manufacturers. The Company's operations are located at 1308 Moffett Park Drive, Sunnyvale, CA 94089. For more information, visit the Company's web site at http://www.finisar.com. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended, including statements regarding Finisar Corporation's expectations, beliefs, intentions, or strategies regarding the future. All forward-looking statements included in this document are based upon information available to Finisar Corporation as of the date hereof, and Finisar Corporation assumes no obligation to update any such forward-looking statements. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those projected. These and other risks relating to Finisar Corporation's business are set forth in Finisar Corporation's Form S-1, as amended and filed with the Securities and Exchange Commission on September 13, 1999, and other reports filed from time to time with the Securities and Exchange Commission.


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