Digital Lightwave Appoints Jim Green as President and CEO; Founder Bryan Zwan Continues as Chairman.

Business Editors/High-Tech Writers

CLEARWATER, Fla.--(BUSINESS WIRE)--Aug. 13, 2002

Company Reorganized into Four Business Units Focused

on Specific Market Opportunities

Digital Lightwave(R), Inc. (Nasdaq:DIGL), a leading provider of optical networking products and technology, today announced that Chief Operating Officer Jim Green has been appointed president and chief executive officer. Company founder Dr. Bryan Zwan, who had returned to Digital Lightwave as chairman, president and chief executive officer in January 2002, will continue as chairman of the board.

"As a result of the optical networking downturn and its impact on our business, the board had asked me to return to an active role in driving sales of existing products and accelerating new product development," said Zwan. "Since promoting Jim Green to chief operating officer and effecting other positive changes in the management team last January, we have expanded our global sales and support infrastructure, refocused our research and development operations, completed the outsourcing of our manufacturing operations, and diversified our product lines through both new development and third-party distribution agreements."

Zwan continued, "This move will enable me to concentrate on the continued evolution of Digital Lightwave's strategy and technology, as well as potential mergers and acquisitions, while Jim directs all business operations from day to day. He has proven his readiness to assume this expanded role over the last several months, and I'm very pleased to turn over the reins to him."

In addition to Green's appointment, Chief Financial Officer Mark Scott has been promoted from vice president to executive vice president, finance.

In connection with these management changes, Digital Lightwave also announced today the formation of four new operating divisions to consolidate engineering and marketing functions for its key market opportunities in dedicated business units. These opportunities correspond to specific product lines and services offered by the company:

-- The Network Installation and Maintenance Products Division will be responsible for the portable network testing product lines, consisting of the flagship Network Information Computers(R) (NICs(R)); the scalable, module-configurable NIC Plus(TM); and the Lightwave (LW) series of handheld devices introduced in July 2002.

-- The Network Management Systems Division will be responsible for the centralized network monitoring and management product lines, including Network Access Agents(TM) (NAAs(TM)); monitoring and diagnostic tools customized to meet specific customer requirements; and complementary products from third-party manufacturers.

-- The Network Equipment Test and Measurement Products Division will provide precision traffic generation and performance analysis tools used in the design, development and manufacturing of network equipment.

-- The Network Management Services Division will provide engineering staff and consulting services for network installation and testing, capacity engineering, traffic optimization, and network planning, as well as technical due diligence for the acquisition and integration of networks.

"We believe that structuring the organization along market segments and the product lines that address them will play to our strengths in the current business environment," said Jim Green. "I look forward to continuing to work with Bryan and our management team on the strategic agenda that we established early this year -- to diversify our products and markets toward a return to revenue growth when the telecommunications industry recovers from its current downturn."

Green joined Digital Lightwave in 1999 and held several operating management positions before his appointment as chief operating officer in January 2002. Previously, he had been chief executive officer of Trillium Industries, a provider of repair, support and supply management services, and vice president, operations, for the MATCO Electronics Group. Green's earlier career included a broad range of operations, sales, marketing, and supply chain management positions at Memorex Telex, Sensory, Atari, Datapoint, and Recognition Equipment.

About Digital Lightwave, Inc.

Digital Lightwave is a leading provider of products and technology for the management of optical networks. These products and technologies are used by telecommunications service providers and equipment manufacturers to develop, install, maintain, and manage high-performance fiber-optic communication networks. News and information are available at www.lightwave.com.

This news release contains 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 relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as may, will, should, expect, plan, anticipate, believe, estimate, predict, potential or continue, the negative of terms like these or other comparable terminology. These statements are only predictions. These statements involve known and unknown risks and uncertainties and other factors that may cause actual events or results to differ materially. In evaluating these statements, you should specifically consider various risks and uncertainties, including fluctuations in operating results, changes in the United States and worldwide economy and fluctuations in capital expenditures within the telecommunications industry, our dependence on a limited number of products and uncertainties of the market for our current and planned products, technological change, our dependence on growth of the Internet, competition, our dependence on a limited number of major customers, our dependence on contract manufacturers and suppliers, our products may not continue to meet changing regulatory and industry standards, our ability to achieve sustained operating profitability, our dependence on key personnel, the significant influence of our principal stockholder, our dependence on proprietary technology, the volatility of our market price, the sale of a significant number of our shares pursuant to future sales contracts could depress the price of our stock, the effect that anti-takeover provisions have on the price of our common stock and past and future litigation risk, as outlined under the caption "Factors that May Affect Future Results" set forth at the end of Item 1 in our Annual Report filed on Form 10-K and such other risks and uncertainties contained from time to time in our other filings with the SEC. All forward-looking statements included in this document are based on information available to us on the date of filing, and we assume no obligation to update any such forward-looking statements. We caution investors that our business and financial performance are subject to substantial risks and uncertainties.

Editor's Note: Digital Lightwave(R), Network Information Computer(R), NIC(R), NIC Plus(TM), Network Access Agent(TM), and NAA(TM) are trademarks of Digital Lightwave in the United States and/or in other countries.