Corning Reduces Optical Cable Workforce; Corning Cable Systems will downsize Hickory assembly.

Business Editors

CORNING, N.Y.--(BUSINESS WIRE)--June 11, 2002

Corning Incorporated (NYSE:GLW) today announced that Corning Cable Systems will eliminate more than 600 positions through a downsizing of its Americas organization and the restructuring of its Optical Assembly Plant in Hickory, N.C. These actions, along with the previously announced closing of Corning Cable Systems' Puerto Rico facility, represent a 10% cut in the business's total Americas workforce.

Corning Cable Systems officials also said that they have begun the process of proposing a reorganization of their European facilities with appropriate employee representatives. Final European decisions will be announced in the next several weeks, as soon as they are agreed upon by all appropriate parties.

These actions are part of the overall restructuring plans Corning announced in April. At that time, the company said it expected to eliminate about 4,000 positions and take a number of additional steps including consolidation of organizations, plant closures, elimination of some research and development operations, and potential sale of some smaller businesses.

"While these actions are extremely regrettable," said Larry Aiello, Jr., president and chief executive officer, Corning Cable Systems, "they are necessary to respond to the significant decline in the telecommunications industry. We are resizing our organization to retain our competitive advantage in the global market and adapt to the reduced business expectations of our customers."

James B. Flaws, vice chairman and chief financial officer, said, "Corning Cable Systems remains a strategically important element of our global telecommunications strategy. We intend to remain a leader in the manufacture of fiber optic and copper communications network hardware and equipment. The actions we are taking are designed to optimize our effectiveness in delivering new products and materials to our customers and part of our aggressive steps to align our cost structure with our revenue expectations."

Corning will make additional restructuring and workforce reduction announcements as decisions are finalized throughout the second and third quarters. The company will provide details on cost reduction estimates associated with these and other restructuring actions in its second-quarter financial report in late July. Previously, the company said that it expected to take total restructuring and impairment charges in the range of $600 million pretax spread over the second and third quarters of 2002 as a result of these and other restructuring actions.

About Corning Incorporated

Established in 1851, Corning Incorporated (www.corning.com) creates leading-edge technologies for the fastest-growing markets of the world's economy. Corning manufactures optical fiber, cable and photonic products for the telecommunications industry; and high-performance displays and components for television, information technology and other communications-related industries. The company also uses advanced materials to manufacture products for scientific, semiconductor and environmental markets. Corning revenues for 2001 were $6.3 billion.

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.