Ad hoc: ADVA OPTICAL NETWORKING REPORTS 51% GROWTH IN 2001 REVENUES TO EUR 90 MILLION

FOURTH QUARTER AND FULL-YEAR 2001 FINANCIAL RESULTS

Revenues in the fourth quarter 2001 reached EUR 24.2 million, an increase of 98.6% over revenues in the fourth quarter 2000 of EUR 12.2 million, and a sequential increase of 4.4% over revenues in the third quarter 2001 of EUR 23.2 million. Pro forma operating loss improved from EUR 11.4 million in the fourth quarter 2000 to EUR 0.2 million in the fourth quarter 2001. Pro forma net loss from continuing operations improved from EUR 10.3 million in the fourth quarter 2000 to a pro forma net income of EUR 2.0 million in the fourth quarter 2001.

Actual net loss from continuing operations in the fourth quarter 2001 was EUR 1.8 million, compared to actual net income from continuing operations of EUR 3.1 million in the fourth quarter 2000. The higher loss was primarily the result of significant positive charges from stock option compensation expenses recorded in the fourth quarter 2000 as a result of the declining stock price. ADVA posted an actual net loss of EUR 11.7 million in the fourth quarter 2001 and EUR 7.7 million in the fourth quarter 2000, primarily as a result of the loss from discontinued operations at the company's Cambridge site. Actual basic net loss per share totalled EUR -0.35 in the fourth quarter 2001 and EUR -0.23 in the fourth quarter 2000.

Revenues in 2001 reached EUR 90.0 million, an increase of 51.2% over revenues during the year 2000 of EUR 59.5 million. Pro forma operating loss improved from EUR 8.7 million during 2000 to EUR 5.6 million during 2001. Pro forma net loss from continuing operations improved from EUR 7.0 million during 2000 to EUR 4.1 million during 2001.

Actual net loss from continuing operations during 2001 totalled EUR 35.1 million, compared to EUR 61.8 million during 2000. ADVA posted an actual net loss of EUR 116.4 million during 2001, compared to EUR 92.4 million during 2000. Actual basic net loss per share totalled EUR 3.57 during 2001 and EUR 2.95 during 2000.

PRESS CONFERENCE, CONFERENCE CALL, AND WEBCAST

In conjunction with the release of its full-year 2001 financial results, ADVA will host a press conference at 10:00 a.m. CET today, March 27, 2002, at its offices in Martinsried/Munich, Germany.

ADVA will also host a conference call for investors at 3:00 p.m. CET / 9:00 a.m. EST today, March 27, 2002. Investors may listen live via Webcast on ADVA's website. Participating in the call will be ADVA's Chief Executive Officer, Brian L. Protiva, and Chief Financial Officer, Andreas G. Rutsch. To listen to the Webcast, interested investors are encouraged to log onto the broadcast at least 15 minutes prior to the call, located on the media archives page in the investor relations section of ADVA's website at http://www.advaoptical.com. The call will be archived as an audio file on ADVA's website. The conference call presentation will also be available on the media archives page in the investor relations section of ADVA's website.

ADVA's complete financial statements and reporting package for the year 2001 can be currently found on its website. The company's 2001 annual report will be available in mid-May.

FIRST QUARTER 2002 OUTLOOK AND EARNINGS RELEASE DATE

ADVA confirmed previous guidance for first quarter 2002 revenues of between EUR 20 to 25 million.

ADVA will announce financial results for the first quarter 2002 for the period ending March 31, 2002, on Tuesday, May 7, 2002. In conjunction with the release of its first quarter 2002 financial results, ADVA will host a conference call for investors at 3:00 p.m. CET / 9:00 a.m. EST on the same day.