Sunnyvale, CA - November 3, 2003 - Alliance Fiber Optic Products has signed a definitive agreement to acquire substantially all of the assets of Ritek Corporation's Photonics Division which is located in Hsin Chu Industrial Park, Taiwan.
Under the terms of the agreement, AFOP will acquire substantially all of the assets of Ritek's Photonics business and assume certain liabilities in exchange for up to 1.7 million shares of AFOP common stock. AFOP may utilize Ritek's photonics manufacturing facility in Hsin Chu Industrial Park, Taiwan, for a period of two years at no additional cost. In addition, Ritek will provide AFOP $1.5 million cash as part of this agreement. The deal is expected to be completed in December 2003 and is subject to various closing conditions.
Peter Chang, President and Chief Executive Officer of AFOP, commented, "Ritek's photonics business, which includes planar lightwave circuit (PLC) technologies, fiber array (FAU) technologies, active devices, and DWDM and related technologies, will be an excellent complement to our existing product lines. Additionally, their manufacturing base and packaging technology gives us added expertise in the areas we believe to be strategically important. With Ritek's established products and customer base for the emerging access and FTTX markets, we believe this acquisition will enable AFOP to strengthen its base of business in Japan and the rest of Asia, which we believe have attractive long-term growth potential. "
Founded in 1995, Alliance Fiber Optic Products, Inc. designs, manufactures and markets a broad range of high performance fiber optic components and integrated modules. AFOP's products are used by leading and emerging communications equipment manufacturers to deliver optical networking systems to the long-haul, enterprise, metropolitan and last mile access segments of the communications network. AFOP offers a broad product line of passive optical components including interconnect systems, couplers and splitters, thin film DWDM components and modules, fixed and variable optical attenuators, and depolarizers. AFOP is headquartered in Sunnyvale, California, with manufacturing and product development capabilities in the United States, Taiwan and China.
AFOP's website is located at www.afop.com
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