Ad hoc: ADVA OPTICAL NETWORKING HOLDS STEADY COURSE AND DELIVERS STABLE REVENUES AND HIGHER PROFITABILITY IN FOURTH QUARTER AND FULL-YEAR 2002

Martinsried/Munich, Germany; Mahwah/New Jersey, USA. March 19, 2003. ADVA Optical Networking (FSE: ADV), a leading global provider of optical networking solutions, today announced fourth quarter and full-year 2002 audited financial results for the period ended December 31, 2002, and prepared in accordance with U.S. General Accepted Accounting Principles (U.S. GAAP).

FOURTH QUARTER 2002 FINANCIAL RESULTS
Revenues in the fourth quarter 2002 totalled EUR 22.2 million, compared to revenues of EUR 22.0 million in the third quarter 2002, and revenues of EUR 24.2 million in the fourth quarter 2001. Pro forma operating income increased to EUR 2.3 million in the fourth quarter 2002, a sequential increase of 45.0% compared to pro forma operating income of EUR 1.6 million in the third quarter 2002, and significant improvement over a pro forma operating loss of EUR 0.2 million in the fourth quarter 2001. Pro forma net income from continuing operations increased to EUR 5.2 million in the fourth quarter 2002, compared to pro forma net income from continuing operations of EUR 1.2 million in the third quarter 2002 and EUR 2.0 million in the fourth quarter 2001.

ADVA posted actual net income of EUR 4.0 million in the fourth quarter 2002, compared to an actual net loss of EUR 11.7 million in the fourth quarter 2001. The higher net loss in 2001 particularly resulted from discontinuing operations at the company's site in Cambridge, UK, and recording a one-time non-cash impairment loss from two acquisitions.

Actual basic net earnings per share totalled EUR 0.12 in the fourth quarter 2002 and EUR -0.35 in the fourth quarter 2001. ADVA has included charges for stock option compensation in its actual financial results since the company first issued options in 1999.

FULL-YEAR 2002 FINANCIAL RESULTS
Revenues in 2002 remained at a relatively similar level to 2001, totalling EUR 88.1 million compared to EUR 90.0 million. Pro forma operating income increased to EUR 4.2 million in 2002, a significant improvement over a pro forma operating loss of EUR 5.6 million in 2001. Pro forma net income from continuing operations increased to EUR 6.1 million in 2002, compared to pro forma net loss from continuing operations of EUR 4.1 million in 2001.

ADVA posted an actual net loss of EUR 1.3 million during the full-year 2002, compared to EUR 116.4 million during the full-year 2001. Actual basic net earnings per share totalled EUR -0.04 in 2002 and EUR -3.57 in 2001.

PRESS CONFERENCE, CONFERENCE CALL, AND WEBCAST
In conjunction with the release of its full-year 2002 audited financial results, ADVA will host a press conference at 10:00 a.m. CET today, March 19, 2003, 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 19, 2003. 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 con calls and presentations page in the investor relations section of ADVA's website at www.advaoptical.com. The call will be archived as an audio file and the conference call presentation will also be available in the investor relations section of ADVA's website.

ADVA's complete audited financial statements and annual report for the year 2002 can be found on its website.

FIRST QUARTER 2003 EARNINGS RELEASE DATE
ADVA expects revenues for the first quarter 2003 to be at the lower end of its previously-issued guidance of EUR 20 to 25 million.

ADVA will announce financial results for the first quarter 2003 for the period ending March 31, 2003, on Tuesday, May 6, 2003. In conjunction with the release of its first quarter 2003 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.

ANNUAL SHAREHOLDERS MEETING
ADVA will hold its annual shareholders meeting on Wednesday, June 11, 2003, in Meiningen, Germany.

ABOUT ADVA OPTICAL NETWORKING
ADVA Optical Networking is a leading global provider of optical networking solutions for rapid and cost-effective provisioning of high-speed data, storage, voice, and video services in the metropolitan area. ADVA's carrier-class portfolio is comprised of the Fiber Service Platform family of products - explicitly designed to ensure the lowest total cost of ownership. ADVA's solutions have been deployed at over 70 carriers and service providers (including PTTs, RBOCs, LECs, and IXCs) and more than 500 enterprises worldwide. ADVA's products are sold through an international network of blue-chip distribution partners in addition to its own direct sales force. Further information about ADVA Optical Networking: www.advaoptical.com.