Optical Switch Corporation Rolls Out Revolutionary New Optical Switch Technology.

RICHARDSON, Texas--(BUSINESS WIRE)--Aug. 31, 1998--

Voice, Video, Data and Internet Applications Driving Demand For Switched Optical Network Services.

Optical Switch Corporation announces a breakthrough in optical switching technology, which will have enormous implications for the emerging "gigabit" optical networks, worldwide. According to Richard Laughlin, founder and CEO, "It could very well change the course of telecommunications history." The development will greatly impact such exploding consumer technologies as faster internet access, voice over internet, plus many other bandwidth-hungry applications which are growing at a relentless rate. The technology was formally unveiled, after successfully completing tests, at OSC's "Telecom Corridor" headquarters in Richardson, Texas.

This revolutionary optical switching technology is based upon both Frustrated Total Internal Reflection (FTIR), and Total Internal Reflection (TIR). TIR is based on the critical angle defined in Snell's law, where optical rays beyond some critical angle are totally and perfectly reflected with no polarization dependence. This is the same optical physics utilized to constrain the optical energy in the optical fibers of today's network. A fiber-to-Gradient Index Lens (GRIN) is utilized to launch a collimated beam into a prism, which reflects the beam at the hypotenuse. When a switch plate is brought into contact with the surface of the prism at the point of Total Internal Reflection, the beam is frustrated (FTIR) and travels into the switch plate where it is again reflected from the rear surface of the switch plate by TIR, where the angular position of the light beam is changed. (A different angle is encoded). This causes the focusing GRIN to shift the beam from the primary to secondary fiber.

Each switch plate is capable of switching an incoming beam into either primary or secondary light beam coupled into either output fiber. Both the optical and switch performance characteristics are superb. The FTIR optical switch is both bit rate and wavelength independent and the actual switch transition time of the FTIR switch is less than 2 microseconds.

Optical performance is optimized, yielding low insertion loss across any NXN connection (2dB for an 8X8 matrix, for example), superior optical channel isolation and excellent optical reflectance characteristics with negligible polarization components.

Because the beam is switched by intimate contact of the switch plate, which is under positive pressure, to the prism surface, FTIR technology can be subjected to extreme environmental conditions such as temperature, shock and vibration, without degradation of the optical signal. As bandwidth over existing fiber optic backbones continues to increase through Wave Division Multiplexing (WDM) and faster digital (SONET) systems, optical network restoration, wavelength grooming and new broadband services such as faster internet access and broadband media services will drive the demand for optical networking. The new FTIR technology can be applied across many systems, including optical ring networks, dynamic ADD/DROP, optical network service restoration/protection, wavelength routing and a new breed of "terabit services such as "Lambda On Demand". "Our customers have told us that optical switching is the missing piece of the puzzle in the race to deploy optical networks," said Laughlin. "Our optical technology is fast, reliable, durable, and can scale to very large matrix sizes without sacrificing optical performance." Given market demand, Optical Switch Corporation is currently offering "beta" units for preliminary customer validation. Production FTIR optical switching units will be available fourth quarter, 1998.

Optical Switch Corporation is centrally located in Richardson's Telecom Corridor. Formerly TIR Communications, the Company was formed in July, 1997. Mr. Laughlin currently holds eight patents involving Frustrated Total Internal Reflection (FTIR), which is the "heart" of OSC's optical switching technology.

"We believe the demand for high performance optical switching will virtually explode over the next 24 months", said Laughlin. "We're primed and ready to fully meet the needs of this burgeoning market." To ensure proper capitalization during its development and production phase, Optical Switch Corporation has received seed capital and continued funding from the same key investors who where instrumental in securing the initial financing for the highly successful Ciena Corporation. More information about Optical Switch Corporation can be found at: http:\\www.opticalswitch.com

    CONTACT: Ad Cetera, Inc., Dallas
              Jennifer Nepper(972) 387-5577
              [e-mail]