Digital Lightwave Continues to Broaden Product Offerings to Address New Markets.

Business Editors/High-Tech Writers

CLEARWATER, Fla.--(BUSINESS WIRE)--Sept. 5, 2002

Digital Lightwave(R), Inc. (Nasdaq:DIGL)

Announces New Line of High-Precision Design and Test Instruments

for Fiber-Optic Communications Component and System Manufacturers

Digital Lightwave(R), Inc. (Nasdaq:DIGL), a leading provider of network solutions, today announced a new series of sophisticated optical test instruments designed for use in the development and manufacturing of fiber-optic communications equipment and components. This new product line provides high-precision testing and quality assurance of optical network equipment, including DWDM systems.

"Our new manufacturing and design test solutions enable equipment manufacturers to begin analyzing actual performance early in the design phase of new products, saving significant development time and money," said Jim Green, Digital Lightwave's president and chief executive officer. "In addition, more efficient manufacturing calls for test automation in real-time, a core competency of Digital Lightwave, yet an untapped market opportunity for us until now."

Digital Lightwave's new series of design and manufacturing test solutions includes the following versatile instruments:

-- Dynamic Component Test System (DCTS(TM)), a self-contained system used during a manual or automated manufacturing process to rapidly analyze devices within a wavelength range, collect critical data, and display the results, providing evaluation of optical components with precision accuracy. These high-speed measurements (200 ms continuous sweep) allow for real-time feedback during production, thereby increasing yields.

-- Mini-Dynamic Component Test System (Mini-DCTS(TM)), offers functionality comparable to the DCTS in a portable testing solution for lab and field spectrum analysis applications. This instrument connects to a laptop computer, providing an economical alternative to the DCTS.

-- WDM Channel Simulator (WCS(TM)), a single instrument to replace bulky, complex and difficult-to-operate multiple-laser systems for a fraction of the cost. Outputs a stable, accurately-spaced comb signal that can be adjusted and modified to suit a wide range of applications.

-- Laptop Optical Channel Analyzer (LT-OCA(TM)). Compact and rugged, this module provides an attractive combination of high-performance and low-cost solutions to dynamic performance monitoring in optical communications networks. Used to analyze DWDM signals, the LT-OCA is designed to perform powerful network monitoring functions in both field and manufacturing environments.

-- Automatic Channel Locking Filter (ACLF(TM)). Available in a single, compact package, the ACLF transforms noisy, low-end lasers into sharper laser sources for a fraction of the cost of high-end lasers. It is used to isolate and track a transmission channel with automatic scan-and-lock circuitry.

The five new instruments are available immediately at list prices from $6,000 to $90,000.

About Digital Lightwave, Inc.

Digital Lightwave, Inc. provides the global communications networking industry with products, technology and services that enable the efficient development, deployment and management of high-performance networks. Our customers -- companies that deploy networks, develop networking equipment, and install and manage networks -- rely on our offerings to optimize network performance and ensure service reliability. Information about Digital Lightwave is available on the Web at www.lightwave.com.

This press 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), DCTS(TM), Mini-DCTS(TM), WCS(TM), LT-OCA(TM)and ACLF(TM)are trademarks of Digital Lightwave in the United States and/or in other countries.