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CIENA ANNOUNCES INTENT TO ACQUIRE AKARA

Ciena® Corporation (NASDAQ: CIEN), a leading global provider of innovative network solutions, today announced that it has reached a definitive agreement to acquire privately-held Akara Corporation. A Delaware corporation with development facilities in Ottawa, Ontario, with approximately 50 employees, Akara is an emerging leader in the growing market of SONET/SDH-based extended storage area networking (SAN), or storage-over-distance solutions for enterprises and carriers. Akara is focused on the opportunity arising as medium and large businesses look to meet higher data storage standards to ensure business continuity and disaster recovery.

Under the terms of the acquisition agreement, Akara will merge with a wholly-owned subsidiary of Ciena, and all remaining outstanding shares of Akara common and preferred stock will be exchanged for an aggregate consideration of $45 million consisting of $31 million in cash and $14 million in shares of Ciena common stock. The number of Ciena shares to be issued will be determined based on the average closing price of Ciena common stock on the Nasdaq Stock Market on the ten trading days preceding the closing date.

This transaction is subject to various conditions. The boards of directors of both Ciena and Akara, and the holders of a majority of Akara’s stock, have approved the transaction. It is expected that this transaction will close during Ciena’s fourth fiscal quarter 2003. The Ciena stock to be issued to Akara shareholders in the transaction has not been registered with the Securities and Exchange Commission or any state or Canadian authority and may not be offered or sold until they are appropriately registered unless an exemption from registration is available.

RBC Capital Markets was the sole advisor to Akara in relation to this transaction.