C-COR Provides Mid-Quarter Update.

Business Editors

STATE COLLEGE, Pa.--(BUSINESS WIRE)--March 3, 2003

C-COR.net Corp. (Nasdaq:CCBL), a global provider of broadband communications products, software systems, and technical services, today announced that the Company will host a conference call on Tuesday, March 4, 2003, at 11:00 AM (ET) to discuss the current status of business.

Net sales for the third quarter of fiscal year 2003, ending March 28, 2003, are expected to be between $49 and $53 million with a net loss per share of between $.14 and $.18 on a GAAP basis. On a pro forma basis, the Company anticipates a net loss per share of between $.13 and $.17. The difference between the GAAP and pro forma projections is the exclusion from the pro forma results of $496,000 of amortization of intangible assets relating to acquisitions. The reduced revenue expectation comes as a result of lower than anticipated international sales and from weather-induced delays in the domestic market.

C-COR continues to improve its cost structure, including previously announced actions associated with the integration of Philips Broadband Networks, acquired in September 2002. In line with the integration plan announced in November 2002, C-COR's product development will be centered in the Company's State College, Pennsylvania, and Meriden, Connecticut, facilities. The majority of C-COR's manufacturing will be consolidated into its production facility in Mexico, and the Company's Klagenfurt, Austria, facility will be responsible for European product development and production. In addition, C-COR is closing the legacy Philips' Manlius, New York, and Louviers, France, facilities, and is outsourcing equipment repair services. C-COR expects any remaining integration and consolidation activities involved with these facilities will be completed by June 2003, and anticipates between $16 and $20 million in annual operational savings with a global work force of 1200 employees.

Accessing the Conference Call

To participate in the March 4th conference call, dial 800-734-1246. International callers should use 303-957-1167. The live audio of the conference call will also be available via the Internet at C-COR's Web site (http://www.c-cor.net). To listen to the live audio, click the appropriate link under the CCBN Webcast icon on the Home Page of C-COR's Web site.

If you are unable to participate on the call, a telephone replay will run between 2:00 PM (ET) on Tuesday, March 4, 2003, through 2:00 PM (ET) on Wednesday, March 5, 2003. To access this replay, dial 800-633-8284. International callers should use 402-977-9140 for the replay. The reservation number for the telephone replay is 21128894.

The Webcast replay of the call will also be available via the Internet at C-COR's Web site (http://www.c-cor.net) following the conference call. To access the Webcast replay, click the appropriate link under the CCBN Webcast icon on the Home Page of C-COR's Web site. Any questions regarding the conference call should be directed to C-COR's Investor Relations office at 814-231-4402 or 814-231-4438.

About C-COR (www.c-cor.net)

C-COR is a leading provider of premium quality, globally-oriented fiber optic, digital video transport, and RF telecommunication products; OSS management solutions; and high-end technical field services--all enabling cost-effective delivery of voice, video, and high-speed data over advanced HFC (Hybrid Fiber Coax) broadband networks. Headquartered in the U.S. with facilities worldwide, C-COR's mission is to provide our customers with second-to-none network integrity throughout the full network life cycle. Throughout 2003, C-COR will be celebrating the Company's 50th anniversary with activities focused on linking its rich tradition of innovation, entrepreneurship, leadership, and commitment to the cable industry with its vision for the future. C-COR's common stock is listed on the Nasdaq National Market (Symbol:CCBL) and is a component of the Russell 2000 Stock Index.

Some of the information presented in this announcement constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent the Company's judgment regarding future events, and are based on currently available information. Although the Company believes it has a reasonable basis for these forward-looking statements, the Company cannot guarantee their accuracy and actual results may differ materially from those the Company anticipated due to a number of uncertainties, many of which the Company is not aware. Factors which could cause actual results to differ from expectations include, among others, capital spending patterns of the communications industry, changes in regard to significant customers, the demand for network integrity, the trend toward more fiber in the network, the Company's ability to develop new and enhanced products, the Company's ability to provide complete network solutions, continued industry consolidation, the development of competing technology, the global demand for the Company's products and services, and the Company's ability to integrate acquisitions and achieve its strategic objectives. For additional information concerning these and other important factors that may cause the Company's actual results to differ materially from expectations and underlying assumptions, please refer to the reports filed by the Company with the Securities and Exchange Commission.