MUNICH, Germany, Feb. 3, 2006 (PRIMEZONE) -- MARTINSRIED, MUNICH, Germany and MAHWAH, New Jersey, Feb. 3, 2006 -- ADVA Optical Networking today announced that the acquisition of all material assets in Covaro Networks Inc. was successfully completed. The total number of newly-issued ADVA non par value bearer shares for the acquisition of Covaro was 2,024,190.
Richardson, Texas, USA-based Covaro is a leading vendor of intelligent Ethernet demarcation products for Ethernet WAN applications that enable service providers to offer intelligent Ethernet services over fiber, copper, SONET/SDH, DS3/DS1 and E3/E1. Covaro will provide a strong complement to the ADVA Fiber Service Platform (FSP), expanding the features and functionalities of ADVA's Ethernet access solution.
ADVA acquired all material Covaro assets via a combination of shares and cash. The purchase price was paid in a USD 4.0 million cash component and in 2,024,190 newly-issued shares of ADVA common stock. Furthermore, an earn-out of up to USD 5.0 million may be paid in cash based on achievement of specific sales and gross margin targets in Q4 2005 and FY 2006 for products developed by Covaro. ADVA's new total nominal capital amounts to EUR 36,956,220, which includes an additional capital increase in the amount of EUR 285,684 from the exercise of employee options and convertible bonds in Q4 2005.
ABOUT ADVA OPTICAL NETWORKING
ADVA Optical Networking (FSE:ADV) is a leading global provider of Optical + Ethernet networking solutions for rapid and cost-effective provisioning of high-speed data, storage, voice and video services in the metropolitan area. Leveraging core competencies in Optical+Ethernet technologies together with expertise in enterprise applications, ADVA focuses on delivering end-to-end solutions from enterprise sites to carrier regional infrastructure. ADVA's carrier-class Fiber Service Platform (FSP) portfolio is explicitly designed to enhance services, simplify networks and reduce the total cost of ownership. ADVA's solutions have been deployed at over 100 carriers and several thousand enterprises worldwide. For further information about ADVA: www.advaoptical.com.
Published by:
ADVA AG Optical Networking, Martinsried/Munich and Meiningen, Germany ADVA Optical Networking Inc., Mahwah/New Jersey, USA ADVA Optical Networking Corp., Tokyo, Japan www.advaoptical.com
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