Agilent Technologies Signs Agreement to Acquire Adaptif Photonics, Expanding Optical Test Leadership in Polarization.

SANTA CLARA, Calif. & HAMBURG, Germany -- Agilent Technologies Inc. (NYSE:A) and Adaptif Photonics GmbH today announced they have signed an agreement for Agilent to acquire Adaptif, a privately held company. Adaptif provides key technology and products used for advanced polarization analysis and control for the test of optical components and systems in telecommunications, as well as in the sensors and laser market. The transaction is subject to standard closing conditions. Financial details were not disclosed.

Adaptif's technology and intellectual property complements Agilent's product offerings, and the acquisition will enhance Agilent's instrument portfolio for fiber-optic test. Adaptif has established itself as a recognized supplier of test products for polarization analysis in the industry. The acquisition will help Adaptif's and Agilent's customers obtain comprehensive insight into their optical components and high-speed optical network designs with a full spectrum of test solutions. Adaptif has a close association with the renowned optical center of expertise at the Technical University of Hamburg-Harburg and has developed extensive intellectual property in optical-measurement product development.

"This acquisition is one step in a series of actions we have taken to strengthen our optical test and measurement offerings and allows us to offer a full range of electrical and optical test equipment for high-speed broadband network designs," said Photonic and Network Test Division VP and General Manager Alois Hauk.

"Adaptif's expertise and product offerings in polarization test are leading-edge in the optical test industry and significantly enhance our ability to address our customers' needs in this field," said Juergen Beck, business manager for Agilent's Photonic Test & Measurement Segment.

"Joining Agilent will allow Adaptif to increase speed when innovating in the polarization arena," said Dr. Ralf Stolte, Adaptif CEO. "We will be able to serve our customers even better under the strong Agilent brand name by focusing on our well-established key technologies. The Adaptif team is excited to join the test and measurement leader and looks forward to further contributing at the leading edge of the industry."

Agilent plans to sell Adaptif Photonics products upon the deal closing, which is expected to occur in June. All Adaptif employees are expected to join Agilent.

About Adaptif Photonics

Adaptif Photonics is a Hamburg, Germany-based, privately owned company, which develops, manufactures and markets industry-leading measurement instruments for polarization control and analysis for application in the telecom, sensors and laser industries. The company was founded in 2002 and has a worldwide customer base. Information about Adaptif Photonics is available on the Web at http://adaptifphotonics.com.

About Agilent Technologies

Agilent Technologies Inc. (NYSE:A) is the world's premier measurement company and a technology leader in communications, electronics, life sciences and chemical analysis. The company's 19,000 employees serve customers in more than 110 countries. Agilent had net revenue of $5.0 billion in fiscal year 2006. Information about Agilent is available on the Web at www.agilent.com.

Forward-Looking Statements 

This news release contains forward-looking statements as defined in the Securities Exchange Act of 1934 and is subject to the safe harbors created therein. The forward-looking statements contained herein include, but are not limited to, information regarding Adaptif Photonics' technologies, technological expertise and its enhancement of our product portfolio, information regarding the contribution Adaptif Photonics would make to Agilent's ability to address customer demands, and the ability of Agilent to provide improved products, services and support to its customers following the closing. These forward-looking statements involve risks and uncertainties that could cause Agilent's results to differ materially from management's current expectations. Such risks and uncertainties include, but are not limited to, risks associated with the ability to effectuate the acquisition on a timely basis, risks associated with changes in demand for Agilent's and Adaptif Photonics' products and risks associated with the development generally of Agilent's overall strategic objectives.

In addition, other risks that Agilent faces in running its operations include the ability to execute successfully through business cycles while it continues to implement cost reductions; the ability to meet and achieve the benefits of its cost-reduction goals and otherwise successfully adapt its cost structures to continuing changes in business conditions; ongoing competitive, pricing and gross margin pressures; the risk that our cost-cutting initiatives will impair our ability to develop products and remain competitive and to operate effectively; the impact of geopolitical uncertainties on our operations, our markets and our ability to conduct business; the ability to improve asset performance to adapt to changes in demand; the ability to successfully introduce new products at the right time, price and mix; and other risks detailed in Agilent's filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the period ended October 31, 2005, and our Quarterly Report on Form 10-Q for the quarterly period ended Jan. 31, 2007. Forward-looking statements are based on the beliefs and assumptions of Agilent's management and on currently available information. Agilent undertakes no responsibility to publicly update or revise any forward-looking statement.

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