New Lumenon CEO Announces Company's Growth Strategy.

Business Editors

VILLE ST. LAURENT, Quebec--(BUSINESS WIRE)--June 8, 2001

Lumenon Innovative Lightwave Technology Inc.'s (NASDAQ: LUMM) newly appointed President and CEO, Mr. Gary Moskovitz, announced today the Company's move-forward business strategy.

"After an intensive analysis of current business conditions, we are taking the appropriate steps to implement and communicate what we believe to be a thoughtful program that will allow us to focus resources, generate revenue, and rationalize spending," said Mr. Moskovitz.

The strategy is made up of three components:

Re-focus Product Plans On Growing Market Segments

In response to the recent market downturn, the Company will accelerate its transition from manufacturing simple passive components to offering a mix of products and services ranging from optical chips to integrated photonic devices. Integrated devices provide customers with greater levels of functionality and more value, enabling the deployment of advanced network equipment at lower prices. Lumenon will maintain its short-term focus on the regional and metro/access markets while continuing to pursue long haul opportunities. This strategy is in keeping with the previously announced joint development of an advanced COADM with Litton Poly-Scientific and the roll out of the Company's 4 and 8 channel passive CWDM devices.

Leverage Core Strengths - Target Current Market Opportunities

Lumenon's early success in both materials science and manufacturing has produced hybrid optical platforms of glass and polymers to create photonic devices that meet or exceed industry standards. Building on its core strengths in proprietary technologies, its high employee skill set, its patented PHASIC manufacturing process, and its 34,000 sq. ft world-class facility and "clean rooms", Lumenon will offer potential partners and customers a variety of stand-alone products and services, as well as end-to-end solutions that address initial optical circuit design, component manufacturing, packaging and testing.

Workforce Re-focus and Rationalization

Workforce re-focusing, a process that began in March of this year, has included the elimination of various senior management functions and a general flattening of the organization. In addition, the Company has trimmed administrative and support staff and repositioned certain key individuals to maximize their strengths. Moving forward the Company will be recruiting for critical science, engineering and financial positions. Lumenon has also reduced non-staff related operating expenditures. The changes reflect an approximate 25 percent net reduction in headcount, from 120 employees to approximately 90 as of June 8th, 2001. Lumenon will also be completing the consolidation of its R&D facility in Dorval, QC into its new, state-of-the-art, Ville St. Laurent, QC headquarters and manufacturing center.

"Moving forward we are very focused on expense management," said Mr. Moskovitz. At the end of May, based on an unaudited estimate, Lumenon's cash position was CDN$23.6 million (US$15.2 million) compared to CDN$27.2 million (US$17.2 million) as of March 31, 2001. The Company is also estimating a one-time restructuring charge of CDN$2.4 million (US$1.55 million) to be distributed over several years.

Building for the Future

Commenting on the new strategy, Mr. Moskovitz said, "The focus for 2001 will center on implementing our growth plan, maturing the technology and the organization, and sampling out various components and services. We remain confident in our mid- and long-term growth opportunities and believe our breakout strategy, in conjunction with our fiscal management efforts, set a clearer path for profitability."

Upcoming Conference Call

To expand on the Company's strategy going forward, Lumenon will provide a business and financial update and will summarize recent actions the Company has taken in a conference call scheduled in the very near future. The date and time of the conference call will be announced shortly.

About Lumenon Innovative Lightwave Technology, Inc.

Lumenon Innovative Lightwave Technology, Inc. designs, develops and builds integrated optics devices in the form of packaged compact hybrid glass and polymer circuits on silicon chips. These photonic devices - based upon Lumenon's patented PHASIC(TM) process - offer communications providers the ability to dramatically boost bandwidth for today's burgeoning telecommunication, data communication and cable industries.

For more information about Lumenon Innovative Lightwave Technology, Inc., visit the Company's Web site at http://www.lumenon.com.

This press release contains certain "forward-looking" statements, as defined in the United States Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and the actual results and future events could differ materially from management's current expectations. Such factors are detailed from time to time in the Company's filings with the regulatory authorities having jurisdiction.

This release is available on the Company's Web site at www.lumenon.com and the KCSA Public Relations Worldwide Web site at www.kcsa.com.