FiberCore Announces Agreement to Manufacture Opitcal Fiber and Preforms in Asia.

CHARLTON, Mass.--(BUSINESS WIRE)--Sept. 25, 1997--FiberCore Inc. ("FiberCore") announced the signing of a Heads of Agreement to establish a Joint Venture ("JV") to manufacture optical fiber and optical fiber preforms in Malayasia. The JV partners are PNB Equity Resource Corp. Sdn. Berhad ("PERC") and Federal Power Sdn. Berhad ("Federal Power") both of which are companies based in Malaysia. FiberCore will own the majority interest in the JV company.

The project is estimated to have a total capitalization of $60 million and is subject to execution of definitive agreements.

PERC is the wholly owned subsidiary of Permodalan Nasional Berhad ("PNB") and was established in 1991 as an equity holding company to provide equity capital to projects which are commercially feasible and of strategic importance to the Malaysian economy. PERC has to date established joint ventures in various industrial and services sectors such as automobile and parts, petrochemical, plastic fabrication, aluminum, heavy machinery, electronics and healthcare. PERC's other joint venture partners are from various countries including Japan, United Kingdon, United States of America, Korea, Australia and Argentina.

Federal Power, also a subsidiary of PNB, was incorporated in March 1974 and is involved in the manufacturing and supply of power cables, installation of power cable systems and trading in power related equipment and accessories.

The new JV company will locate in Malaysia's new Multimedia Super Corridor ("MSC"). The JV company is expected to receive full MSC status, which provides significant financial and tax incentives, underlining its position as a core provider of infrastructure enabling products. MSC is a revolutionary development, driven forward by the personal involvement of Malaysia's Prime Minister, Dato' Seri Dr. Mahathir Mohammed, whose vision is to see Malaysia positioned as the center of the world-wide technology and multimedia revolution, with the MSC becoming a hub for high technology research, development and manufacturing.

PERC investment in this joint venture is viewed as a strategic venture in line with the development of the Malaysia MSC. PERC also believes that there will be tremendous growth of fiber optics in telecommunication and multimedia applications (the combination of voice, video and data transmission) to accomodate the communication revolution epitomized by the information super highway and the Internet.

This press release contains certain statements of a forward-looking nature relating to future events or the future financial performance of the company. Such statements are only predictions and the actual events or results may differ materially from the results discussed in the forward-looking statements. Factors that could cause or contribute to such differences include those discussed in filings made by the company with the Securities Exchange Commission.

FiberCore is headquartered in Charlton, Mass. with a manufacturing facility in Jena, Germany. FiberCore shares are traded on the OTC Bulletin Board.

For further information you can find FiberCore on the Internet at: http://www.FiberCoreUSA.com, or E-Mail to "[e-mail]". Tel: [phone].

CONTACT: FiberCore Inc.

Charles DeLuca, 508/248-3900