MRV Invests in RedC Optical Networks Inc.

Business Editors

CHATSWORTH, Calif.--(BUSINESS WIRE)--March 16, 2000

MRV Communications Inc. (Nasdaq:MRVC), one of the world's leading suppliers of fiber-optic components for the telecom, datacom and wireless industries, today announced the completion of an initial private placement in RedC Optical Networks Inc., a Delaware private company.

RedC Optical Networks is a spinoff of El-Op Electro-Optics Industries Ltd., the largest electro-optics group in Israel and an internationally recognized industry leader.

RedC is a leader in the design, development, production and integration of DWDM optical modules and building the entire optical layer in advanced optical networks. The company has successfully developed and deployed innovative DWDM systems for some prominent telecommunication vendors.

RedC has developed a complete line of optical modules used for operating, monitoring and protecting optical networks, including:

1.  Optical amplifiers -- state-of-the-art pre-amp, inline and booster
    types with gain equalization for C Band. Modules are either gain
    blocks (only optical components) or integrated (with operational
    electronics microprocessor controlled and RS232 communications).
2.  Add/drop modules -- with limited (1nm) wavelength tuning, based
    on Fiber Bragg Gratings; feature power equalization for added
    wavelength.
3.  Protection and restoration modules -- allowing resilience in
    wavelength provisioning based on fast opto-mechanical switches.
4.  DWDM monitoring (in R&D stage) -- these products will be capable
    of detecting and analyzing various failure drivers: added or
    subtracted wavelengths from the system, fiber fault and
    transmitter fault, transients in power at each of the wavelengths,
    transmitter wavelength drift, cross talk, OSNR at each of the DWDM
    wavelengths, power equalization impairments and more.

Using its experience in designing and building optical systems, RedC has initiated an R&D program to implement optical and RF technologies for building a scalable multiaccess network with dynamic bandwidth allocation.

RedC was formed and is managed by its three founders: Yossi Boker, previously a director of business development in Elop; Uri Ghera, Ph.D.; and Boaz Lisak.

The R&D team is headed by Ghera, the company's chief technology officer. Ghera has been exploring the fiber arena for more than a decade and is considered one of Israel's top-ranking authorities in fibers and optical communications. Under his technological leadership, RedC has completed a number of challenging R&D projects, including the development of the entire optical layer for a state-of-the-art DWDM system.

Noam Lotan, president and chief executive officer, commented: "RedC's cutting-edge R&D team, innovative products and demonstrated capabilities give it a competitive advantage and position the company to capitalize on opportunities in the exploding market for DWDM optical networks and devices."

About MRV Communications

MRV Communications is a world-class leader in optical network components and systems. The company has leveraged its early leadership in fiber-optic transmission into a well-focused range of solutions, integrating switching, routing, access servers and optical transmission systems.

As the Internet evolves into a single global communication network, MRV has launched the development of new technologies to drive the next-generation infrastructures. Such developments encompass optical access systems, subscribers' management systems and Linux-based solutions.

MRV has initiated and funded cutting-edge start-up companies including Zaffire Inc. (formerly known as New Access Communications), Charlotte's Networks, Hyperchannel and Zuma Networks.