Corning to Acquire NZ Applied Technologies; Manufacturer of Optical Components; Transaction increases Corning's 20% share in the company to full ownership.

Business Editors

CORNING, N.Y.--(BUSINESS WIRE)--April 24, 2000

Corning Incorporated (NYSE:GLW) announced today that it has reached an agreement to acquire the remaining equity in NZ Applied Technologies Corporation of Woburn, Mass., for up to $150 million in Corning common stock. As part of the agreement, a significant portion of the purchase price is contingent upon NZAT achieving certain product development milestones, following the completion of the transaction. Corning had assumed a 20% equity ownership position in the company in 1999.

In making the announcement, Corning's Passive Components Business Director, Jean-Louis Malinge stated, "The rapidly growing demand for broadband communications services, such as high-speed Internet connections and on-line video, is outstripping the capacity of communications service providers. To achieve greater functionality, companies are accelerating the deployment of Dense Wavelength Division Multiplexing (DWDM) systems. NZAT is developing a line of high speed, solid-state, OptoCeramic(TM) components for DWDM systems, such as variable optical attenuators (VOAs), that will meet industry demands for speed, quality and reduced size." According to Malinge, Corning intends to leverage NZAT's expertise in micro-optic component development to create new products required in photonic networks.

NZAT's President and Chief Executive Officer, Peter Norris stated, "We are delighted to be taking our three year relationship with Corning, a leading optical layer company, to the next level. The combination of NZAT's leading edge OptoCeramic(TM) and product development expertise with Corning's market and manufacturing leadership will deliver new and unique integrated optical modules for photonic networks."

NZ Applied Technologies (www.nzat.com) is a developer and manufacturer of photonic components for optical telecommunications applications including the optical data networks industry. Founded in 1993, the company was named to the INC. 500 list of the fastest growing privately held companies in the US and also received a FAST 50 award as one of the 50 fastest growing technology companies in New England by Deloitte & Touche, LLC. NZAT manufactures a line of solid-state VOA's that are the fastest, most compact VOA's on the market today. NZAT's development programs include variable attenuator arrays, tunable optical filters, optical switches, and polarization controllers.

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 and other communications-related industries. The company also uses advanced materials to manufacture products for scientific, semiconductor and environmental markets. Corning's revenues in 1999 were $4.7 billion.

Forward-Looking Cautionary Statements

Except for historical information and discussions contained herein, statements included in this release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause results to differ materially, as discussed in the company's filing with the Securities and Exchange Commission.