Metro DWDM Supplier Lumentis Receives $19 Million In Second Round of Funding; Santec and Deutsche Bank Provide Support for Production Ramp-Up and R & D Cooperation.

Business/Technology Editors

STOCKHOLM--(BUSINESS WIRE)--April 9, 2002

Lumentis AB, a provider of metro DWDM systems that maximize network utilization, announced additional funding of $19 million.

Santec, a leader in state-of-the art DWDM system components and photonic products, has formed a partnership with Lumentis that includes a strategic investment, R&D cooperation and the distribution of Lumentis' metro DWDM solutions to the Asian market. Further, existing investor Deutsche Bank Industrial Holdings AG, a subsidiary of Deutsche Bank AG in Germany, has contributed additional funds through a mix of financial instruments, which reaffirms its commitment to provide financial backing for Lumentis through to positive cash flow.

"We are pleased to be working with Lumentis AB. This strategic partnership represents an important step to achieve rapid growth in the future," said Dr. Sadamura, CEO of Santec. "We believe that exchanges in our companies' fields of expertise will provide benefit for both companies. Collaborating with Lumentis AB will enable us to decrease the time-to-market of new optical components and optical subsystems for metro-system applications."

"Both partnerships offer tremendous growth opportunities for Lumentis and will simultaneously allow us to expand into the Asian market," said Anders Lundberg, CEO of Lumentis. "We are confident that these partnerships will accelerate our fast-growth path with further product development and production ramp-up. It is another very important milestone for Lumentis as we continue to increase our presence in the global market place. We also secure access to the latest R&D within optical components for our system development."

"We are committed to Lumentis' success as they offer solutions that will enable carriers to deploy DWDM in metro networks with extremely low initial entry costs," said Olaf Castritius, Director of Deutsche Bank Industrial Holdings AG. "Not only does the company provide a new cost-cutting solution with drastically lower operational expenses, but the management team is very strong and aggressive in driving potential sales and partnership opportunities."

This solid funding will enable Lumentis to continue to focus on sales, partnerships and customer needs by further developing the functionality of its unique system architecture.

ABOUT SANTEC

Santec Corporation was established in 1979. It is headquartered in Komaki, Japan and has subsidiaries in America (Santec U.S.A.), the U.K. (Santec Europe Ltd.) and in China (Santec Shanghai). It is listed on the Nasdaq Japan section of the Osaka Stock Exchange. The company employs 300 staff and serves customers in more than 30 countries; these include most of the world's major telecommunications companies and telecommunication system manufacturers.

Santec's products include a broad range of optical components and tunable laser light sources for the optical fiber industry, together with a range of fiber optic test and measurement instruments. For further information about Santec Corporation or any of its products please contact the International Sales and Support Division by email to info@santec.com. Information is also provided through the Internet on Santec's home page: http://www.santec.com.

ABOUT DEUTSCHE BANK INDUSTRIAL HOLDINGS AG

DB Industrial Holdings AG ("DB Investor") was set up by Deutsche Bank AG in early 1999 to manage its DEM 40 billion portfolio of industrial participations more actively and diversify the portfolio by private equity investments. In private equity DB Investor concentrates on growth industries such as telecommunications and media as well as on industry restructurings.

About Lumentis AB

Headquartered near Stockholm, Sweden, Lumentis designs, develops and delivers metro DWDM systems that maximize network utilization and drastically reduce the operational expenses for carriers and network operators. Within 12 months of the company's inception, Lumentis introduced a market-ready metro solution that does not require optical amplifiers. Lumentis' innovative system architecture tolerates more optical loss and provides more than twice the capacity of other systems. This allows DWDM-based metro networks to be implemented where it was previously not economically feasible. The performance of the Mentis solution was proven in an extensive transmission and interoperability test on a real city-fiber network by a third party testing facility, Validation AB in February 2002. An unamplified 98km ring with 40 wavelengths and 20 nodes was successfully tested showing error-free results. Further, Lumentis offers its Multi-Dimensional Scalability (MDS) platform that manages network size, traffic channel counts, capacity, wavelengths and management solutions. The privately held company was founded in September 2000 and is backed by Deutsche Bank Industrial Holdings AG, which provides the company with solid and long-term financing. For more information about Lumentis AB, go to www.lumentis.se