Corning Delivers Annual Fiber and Photonics Briefing in Conjunction with OFC 2003.

Business Editors/High-Tech Writers

OFC 2003

ATLANTA--(BUSINESS WIRE)--March 25, 2003

Corning Incorporated (NYSE:GLW)

Company outlines 2002 industry performance, long-term potential of

optical communications industry

Corning Incorporated (NYSE:GLW) will present its annual overview of the fiber and photonics industry at an investor and media briefing being held today in conjunction with the annual Optical Fiber Communications Conference (OFC 2003) in Atlanta, Georgia.

Following a year of industry downturn, Corning will reiterate confidence in the long-term potential of the optical communications industry.

With the fundamental drivers of bandwidth growth and an increased trend in technology substitution from copper to optical networks, Corning continues to believe that there is significant growth opportunity for the telecommunications industry in the longer term. The company will emphasize changes in three key factors that will be necessary for resumed growth: carrier financial health, profitable broadband business models, and public policy initiatives. Corning recognizes the very positive potential impact of the recent Federal Communication Commissions's (FCC) ruling on broadband in which FTTH was relieved from unbundling and wholesale pricing rules.

2002 Fiber Market

Citing steep declines in 2002, particularly in North America, Robert B. Brown, vice president and general manager of Corning Optical Fiber, will estimate that the total worldwide fiber market was approximately 55 million fiber kilometers last year, representing an overall decrease of approximately 50% compared to 2001. Brown will say that these numbers exemplify the exceptionally difficult year for the telecommunications industry in 2002.

Brown will detail the 2002 demand by region and application, citing the following estimates: North America, which accounted for 25% of the total worldwide demand, declined by approximately 65%; Western Europe, representing 10% of the worldwide demand, declined by approximately 75%; Japan, representing 30% of the worldwide demand, decreased by nearly 10%; "Other Asia," which represented 30% of the worldwide demand, decreased by about 35%; Latin America and "Rest of World," which comprised 5% of the worldwide demand, declined by approximately 70%.

Brown will continue by breaking out the estimated 2002 growth rates by application: long-haul terrestrial/submarine, metro, access, and premises. Long-haul terrestrial/submarine, accounting for 10% of the total worldwide demand, showed a decline of approximately 70%, driven largely by the steep decline in capital expenditures in the U.S. and Western Europe; demand for fiber in metro applications, representing 45% of the total worldwide demand, decreased by approximately 50%; access, representing 40% of the total worldwide demand, showed a decrease of about 45%; and premises, accounting for 5% of the total worldwide demand, decreased by 25%. Brown will also note that little change is expected in 2003 fiber demand.

Photonics Market Recap

Dr. Gerald J. Fine, senior vice president and general manager of Corning Photonic Technologies, will present Corning's review of the worldwide market for photonic components and modules. Fine will estimate that, after nearly 50% growth in 2000, optical system spending, which includes WDM and SONET/SDH equipment, declined by approximately 60% in 2002. Factored into this, Fine will note, was a decrease of 74% in optical system spending in North America.

Fine will go on to provide estimates of 2002 performance by segment within the optical systems market. He will note that worldwide DWDM systems sales declined by nearly 62% in 2002. Taken from a regional perspective, this downturn showed: North America declined by 74%; Europe declined by 58%; Asia-Pacific declined by 43%. From a market segment perspective: long-haul declined by 64% and metro declined by approximately 50%. Additionally, Fine will note that the DWDM component market declined by approximately 80%, due to high levels of inventory.

Fine will discuss some expectations for 2003, noting that the DWDM system market is anticipated to decline a further 15-25%. Component sales are expected to decline at approximately the same rate, whereas in 2002 they declined at a much greater rate. However, he will express an expectation that the 2003 components market could stabilize as compared to the second half of 2002.

Reaffirming a belief in the fundamentals driving long-term growth in the telecommunications industry, Corning will emphasize its ongoing leadership in optical communications. Brown and Fine will outline product innovations, customer relationships and developmental technologies, all closely aligned with identified network needs, that are being featured in the company's booth (#6928) and presentations at OFC this year.

Conference Call Information

Corning will make the presentations available to the public by webcast and telephone access. The broadcast will be held today at 8:30 a.m. EST. The dial in number is 630-395-0026. The password is Corning. The leader is Sofio. A replay of the call will begin at approximately 12:00 p.m. EST and will run through 5:00 p.m. EST on April 8, 2003. To access the replay, dial 402-998-0536; a password is not required. A live audio webcast will be available at www.corning.com/investor_relations/ and will remain there for 14 days following the call.

Established in 1851, Corning Incorporated (www.corning.com) creates leading-edge technologies that offer growth opportunities in markets that fuel the world's economy. Corning manufactures optical fiber, cable and photonic products in its Telecommunications segment. Corning's Technologies segment manufactures high-performance display glass, and products for the environmental, life sciences, and semiconductor markets.

Forward-Looking and Cautionary Statements

This press release contains forward-looking statements that involve a variety of business risks and other uncertainties that could cause actual results to differ materially. These risks and uncertainties include the possibility of changes or fluctuations in global economic conditions; currency exchange rates; product demand and industry capacity; competitive products and pricing; availability and costs of critical components and materials; new product development and commercialization; order activity and demand from major customers; capital spending by larger customers in the telecommunications industry and other business segments; the mix of sales between premium and non-premium products; possible disruption in commercial activities due to terrorist activity and armed conflict; ability to obtain financing and capital on commercially reasonable terms; acquisition and divestiture activities; the level of excess or obsolete inventory; the ability to enforce patents; product and components performance issues; and litigation. These and other risk factors are identified in Corning's filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the day that they are made, and Corning undertakes no obligation to update them in light of new information or future events.