ONI Systems Lays Groundwork for ILEC Deployments; Robust Products and Streamlined Telcordia OSMINE Process Enable Aggressive Completion of Initial OSMINE Certification.

Business Editors/Technology Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--Feb. 7, 2002

ONI Systems Corp. (Nasdaq:ONIS), a leading provider of optical telecommunications systems for metropolitan and regional markets, today announced that it has successfully completed the first phase of the Telcordia(TM) OSMINE Services process. This is an important step for ONI products to be certified for deployment into incumbent local exchange carrier (ILEC) networks.

The OSMINE Services process ensures interoperability of network equipment and operations support systems (OSSs) for ILECs before new networking equipment can be deployed. As OSMINE compliance is a requirement for ILECs, several of ONI's products, such as ONI's ONLINE(TM) transport platforms, ONWAVE(TM) multiplexers, OC-192 interface and more, have been integrated with the Telcordia(TM) TIRKS(R) System. Following the completion of the OSMINE certification process, ILECs will be able to integrate ONI's industry-leading optical networking platforms into their existing operations environments to rapidly meet the growing demand for metropolitan optical services, such as Gigabit Ethernet, SONET, storage applications and wavelength services.

"Telcordia is working closely with ONI to meet its customer's specific needs -- an excellent example of working in a coordinated effort throughout the OSMINE process," said Rusty Cumpston, chief operating officer, ONI Systems. "Our relationship with Telcordia will be a continuous process, especially as we introduce new products to the market. We're off to a great start and look forward to doing more."

Augie Cruciotti, executive vice president, Local Networks, Qwest Communications, an existing ONI customer, said, "ONI's success moving through the OSMINE process was a key factor in Qwest rolling out new ONI equipment in our existing local network. Installations are going smoothly, and we are pleased with our ongoing relationship with ONI."

"Telcordia is committed to parallel development, simultaneously assisting vendors in qualifying their products while still in development for the marketplace," said Dennis Tinley, vice president, Operations Support Systems, Telcordia Technologies. "Our aggressive schedule to complete the OSMINE process for ONI, while working closely with service providers, is a prime example of this commitment."

Cumpston added, "ONI has approached the OSMINE process as an investment -- a mutually beneficial relationship. We've been working closely with Telcordia to better understand the ILEC space, while educating them on optical architectures and optical shared protection schemes. With our experience through the OSMINE processes, and the knowledge we have received from Telcordia, we expect to compete even more aggressively for ILEC deployments."

(The Telcordia TIRKS system plans, inventories, and assigns the circuit order control and circuit provisioning of interoffice equipment and facility inventory.)

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. For additional information about ONI and its products, visit the company Web site at www.oni.com.

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by this section. These forward-looking statements include, but are not limited to, statements regarding expected completion of the OSMINE Program and the possibility of future deployments of ONI equipment by incumbent local exchange carriers. These and other forward-looking statements in this press release 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 ability to successfully complete the OSMINE Program, 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, our dependence on sole or limited source suppliers for several key components, and current economic and market conditions. 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 September 30, 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.