Agilent Technologies Announces Aggressive Expansion of Manufacturing Capacity for Fiber-optic Components; Aims to Quadruple Capacity Over Two-Year Period.

Business Editors, Technology Writers

PALO ALTO, Calif.--(BUSINESS WIRE)--June 7, 2000

Agilent Technologies Inc. (NYSE:A) today announced that it has undertaken an aggressive expansion of manufacturing capacity for fiber-optic components.

Agilent, the worldwide leader in fiber-optic transceivers, is increasing capacity in order to stay ahead of explosive market demand. The company plans to quadruple worldwide capacity through expansions at each of its fiber-optic manufacturing sites, including both front-end and back-end manufacturing operations, over a two-year period.

In support of the capacity expansion, Agilent expects to invest more than $175 million dollars in capital equipment and plant expansions. The company has recently placed a multi-million dollar order for additional multi-wafer reactors for laser device epitaxy, which are slated for installation by the end of July.

"One of the major initiatives that propelled us into a leadership position in fiber optics was our commitment to win in high-volume applications," said Bill Sullivan, senior vice president and general manager of Agilent's Semiconductor Products Group. "Our fiber-optic manufacturing capabilities are second to none, and customers that need to ensure availability and affordability of critical components for fast-growing markets realize that."

"The market for fiber-optic components continues to grow exponentially," said Shane Gibeson, worldwide manufacturing manager for Agilent's Fiber Optic Communications Division. "Our goal is to continue to expand ahead of the market in anticipation of our customers' needs."

In addition to its position as the leading supplier of fiber-optic transceivers, Agilent also provides leading-edge IC products to deliver integrated network semiconductor solutions. Further information on Agilent's fiber-optic communications offerings may be found on the Web at www.agilent.com/view/fiber/.

About Agilent Technologies

Agilent Technologies Inc. (NYSE:A) is a diversified technology company, resulting from Hewlett-Packard Company's plan to strategically realign itself into two fully independent companies. With approximately 43,000 employees serving customers in more than 120 countries, Agilent Technologies is a global leader in designing and manufacturing test, measurement and monitoring instruments, systems and solutions, and semiconductor and optical components. The company serves markets that include communications, electronics, life sciences and healthcare. In fiscal year 1999, the businesses comprising Agilent, then a subsidiary of HP, had net revenue of more than $8.3 billion.

Information about Agilent Technologies can be found on the Web at www.agilent.com.

This news release contains forward-looking statements (including, without limitation, statements about the company's plans to expand manufacturing capacity for fiber-optic components) that involve risks and uncertainties that could cause the results of Agilent Technologies to differ materially from management's current expectations. These risks include the ability of Agilent to successfully operate as an independent company, including the ability to retain and motivate key employees in a very competitive technology labor market; and the potential for business disruption. In addition, other risks that Agilent faces in running its operations include: the timely ability to ramp manufacturing capacity to meet order demand; the timely innovation, production, commercialization and acceptance of new products and services; the economic, political and other risks associated with international sales and operations; the cyclical nature of many of the industries and markets into which Agilent sells its products; the potential for experiencing increased costs resulting from decreased purchasing power as a separate company from HP; the current use of information systems and transitional services provided to Agilent by HP, which Agilent must develop and procure on its own in the near term, potentially at increased costs; and other risks detailed in Agilent's Annual Report on Form 10-K for the year ended October 31, 1999, and its Quarterly Report on Form 10-Q for the quarter ended January 31, 2000, as filed with the Securities and Exchange Commission.