ONI Systems Introduces New Tunable Amplifiers And Dispersion Compensation Capabilities For Metro and Regional Networks.

Business Editors/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--July 24, 2001

Tunable Gain Amplifier And Dispersion Compensation Module

Enhance Performance for Optical Networks

SAN JOSE, Calif.--(BUSINESS WIRE)--July 24, 2001

ONI Systems Corp. (Nasdaq:ONIS), a leading provider of optical telecommunications systems for metropolitan and regional networks, today announced the introduction of two new modules for its industry-leading ONLINE(TM) product family, the tunable variable gain optical amplifier (VGA) and the dispersion compensation module (DCM). The VGA and DCM modules will be provided by Corning Incorporated (NYSE:GLW), one of ONI's key suppliers.

The VGA, a new module fully integrated into the ONLINE transport platform, allows optical gain to be automatically tuned to optimal values depending on network topology and configurations. Coupled with the ONLINE transport platform's real-time signaling and control mechanisms, the VGA enables dynamic, network-wide gain adjustment to maximize system optical performance within milliseconds of any network change.

The DCM is a new optical module that optically "corrects" the effect of chromatic dispersion, a property of transmission fiber that causes light pulses to smear and limits the bit-rate and transmission distance.

The introduction of VGA and DCM capabilities significantly extends the distance that OC-192/STM-64 optical signals travel before requiring regeneration. Both the VGA and DCM are targeted for metro and regional applications and enable carriers to build larger, more flexible 10 Gb/s DWDM networks at lower infrastructure cost as well as upgrade current networks from 2.5 Gbps.

"We are delighted that our optical component and optical amplifier expertise will play a role in developing these two components," said Frank Little, vice president and general manager, Optical Transport Products at Corning. "The VGA and DCM modules will help ONI deliver added value to a whole new wave of customers in the growing metropolitan market."

"ONI continues to extend its lead in optical technology with these new capabilities," said Jianhui Zhou, senior director of Product Management, ONI Systems. "The introduction of VGA and DCM reflects our proven track record of boosting carrier service capabilities while reducing carrier operating costs."

The ONLINE platform provides dynamic power management, choice of shared or dedicated optical protection schemes (O-UPSR and O-BLSR), multi-service client interfaces (Gigabit Ethernet, Fibre Channel, OC-48 and OC-192), flexible add/drop capabilities and sub-wavelength service grooming. With the newly introduced VGA and DCM modules, the platform enables carriers to support OC-192 wavelengths to distances greater than 300 kilometers over standard fiber spans without regeneration.

About Corning Incorporated

Established in 1851, Corning Incorporated (www.corning.com) creates leading-edge technologies for the fastest-growing markets of the world's economy. Corning manufactures optical fiber, cable and photonic products for the telecommunications industry; and high-performance displays and components for television, information technology and other communications-related industries. The company also uses advanced materials to manufacture products for scientific, semiconductor and environmental markets. Corning revenues for 2000 were $7.1 billion.

About ONI Systems

ONI Systems (Nasdaq:ONIS) develops, markets and sells optical networking equipment specifically designed to address bandwidth and service limitations of regional and metropolitan networks. Our products allow communication service providers to rapidly build high-capacity metro networks that are flexible, scalable and able to support multiple services on a single platform. Our products include the ONLINE11000, ONLINE9000, ONLINE7000, and ONLINE2500 transport platforms; the ONWAVE(TM) OC-48 SONET/SDH Add/Drop Multiplexer and the ONWAVE Data Multiplexer; OC-192/STM-64 (10 gigabits per second) interface, dispersion compensation module (DCM) and variable gain amplifier (VGA). The ONLINE(TM) transport platforms are complemented by our OPTX(TM) Software Suite for end-to-end wavelength and service management capabilities. The OPTX Software Suite includes the OPTX Network Designer, OPTX Management Portal, OPTX CORBA Gateway, OPTX Network Operating System (NOS) and more, as well as the OLMP(TM) optical link management protocol suite for standards-based internetworking. For additional information about ONI and its products, visit the company Web site at www.oni.com.

This press release contains forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by this section. Except for historical information, the matters discussed in this press release are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include, but are not limited to, our limited operating history which makes forecasting our future revenue and operating results difficult, our ability to develop and to achieve market acceptance of new products, our dependence on a small number of customers, our ability to add additional customers and our dependence on sole or limited source suppliers for several key components. These and other risks and uncertainties are described from time-to-time in ONI Systems' filings with the Securities and Exchange Commission, including ONI Systems' quarterly report on Form 10-Q for the quarter ended March 31, 2001, ONI Systems' annual report on Form 10-K for the year ended December 31, 2000 and other documents on file with the SEC.

Note to Editors: ONI Systems, ONI, the ONI logo, ONLINE, OPTX, OLMP and ONWAVE are trademarks or registered trademarks of ONI Systems Corp. All other trademarks are the property of their respective owners.