Color-Shift Effects: A Growing Trend; JDS Uniphase Subsidiary Flex Products Adds Capacity to Meet Customer Demand for ChromaFlair & SecureShift Pigments.

Business Editors

SANTA ROSA, Calif.--(BUSINESS WIRE)--Aug. 16, 2001

In response to increasing customer demand, Flex Products Inc., a JDS Uniphase company (Nasdaq:JDSU), today announced that it has more than tripled its color shifting pigment capacity, by installing two unique new multimillion- dollar coating machines at its Santa Rosa headquarters.

This high-tech equipment uses thin-film coating technology to produce the popular ChromaFlair(R) pigments and the company's new SecureShift(TM) product-authentication technology.

There has been a significant increase in the global demand for the company's unique pigment technology from a number of consumer product markets. Flex Products believes it can now meet the demand, ship from stock, and more aggressively grow new opportunities.

Electron Beam Technology Creates Color-Shifting Flakes

The machines at Flex use state-of-the-art electron beam deposition technology in a proprietary and patented coating process. The new machines have exceeded production output estimates at a quicker pace than anticipated.

"Although the new machines are similar to our previous equipment, we have seen a higher throughput with these new machines," said Ed Dietrich, Flex Products' director of sales and marketing. "This increase is due to a collaborative effort between Flex engineers, scientists and our suppliers, and we believe enables us to better serve our customers."

Dietrich emphasized that this new capacity coincides with the increasing demand for ChromaFlair pigments from companies in a wide variety of consumer product industries including consumer electronics, automotive and sporting goods.

Flex expects to satisfy the existing needs of its present customers and plans to develop new customers with aggressive market testing for several new unique pigments and coatings for both the decorative and emerging product-authentication markets.

What Are ChromaFlair Pigments?

ChromaFlair light interference pigments give paints, plastics and textiles the ability to change color depending on the angle of view. These multi-layered pigment flakes can be combined with other materials to create a wide variety of unique colors and attention-grabbing effects that make ChromaFlair pigments The ColorShift Leader(TM).

More than 20 major paint and plastic manufacturers around the world supply ChromaFlair pigment-based materials for use in products manufactured by companies such as Nokia, Sony, Hewlett-Packard, Motorola, Honda, Mercedes-Benz, Chanel, Nike and Adidas.

SecureShift Product Authentication Technology

SecureShift Technology is a new light-interference pigment platform of specific colors designed for product-security applications. SecureShift offers the brand owner unparalleled options to creating effective product security programs by combining secure authentication, flexible aesthetics, and ease of application for a wide range of products.

By offering a very high level of counterfeit deterrence from a secure source, SecureShift provides a simple and straightforward appearance that is easy to authenticate. Brand owners find that SecureShift blends aesthetically with their existing identities and is easily integrated in or on the product's packaging, labeling, tamper-evident closures, or into the product itself.

About Flex Products

Flex Products Inc. is the innovator and world leader in the development and manufacture of the highest performance color-shifting pigments for the authentication and differentiation of documents and products. ChromaFlair and SecureShift pigment technologies are available through an extensive network of sales reps and agents, throughout the United States, Asia and Europe.

About JDS Uniphase

JDS Uniphase is a high-technology company that designs, develops, manufactures and distributes a comprehensive range of products for the growing fiberoptic communications market. These products are deployed by system manufacturers worldwide to develop advanced optical networks for the telecommunications and cable television industries.

JDS Uniphase is traded on the Nasdaq National Market under the symbol "JDSU," and the exchangeable shares of JDS Uniphase Canada Ltd. are traded on the Toronto Stock Exchange under the symbol "JDU." More information on JDS Uniphase is available at www.jdsuniphase.com.

The statements contained in this news release that are not purely historical are 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. These statements may be identified by their use of forward-looking terminology such as "believes," "expects," "plans," and similar words. Such forward-looking statements include, but are not limited to, any statement or implication as to (a) the benefits believed or expected to be received by Flex Products from the new coating machines described in this news release, or (b) the demand for Flex Products' products and the industry in general, including, without limitation, any such statement or implication as to (i) the ability of Flex Products to meet current or future customer demand, or (ii) Flex Products' ability to increase its customer base. Such forward-looking statements involve risks and uncertainties that, if realized, could materially impair the company's results of operations, business and financial condition. These risks and uncertainties include, but are not limited to, factors discussed from time to time in reports filed by the company with the Securities and Exchange Commission. The forward-looking statements contained in this news release are made as of the date hereof, and the company does not assume any obligation to update or qualify any of the statements made herein.

For sales information about ChromaFlair pigments or SecureShift Technology, contact Flex Products Inc. at 1402 Mariner Way, Santa Rosa, Calif. 95407-7370. Phone: [phone]. Fax: [phone]. E-mail: [e-mail]. Check out the Web site at: www.colorshift.com.