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IDC NAMES CIENA TOP WORLDWIDE DWDM PLAYER

CIENA Identified for Cutting Carriers’ Capital Expenses; Grew Its Global Long-Haul DWDM Market Share from Ten to 23 percent in 2001

IDC, a leading telecommunications market analyst firm, today released findings of its annual optical networking market share survey, in which it revealed that Ciena® Corporation (NASDAQ: CIEN), a global provider of intelligent optical networking systems and software, has achieved the global leadership position for long-haul dense wavelength division multiplexing (DWDM) system deployment. The results are as of the end of calendar year 2001.

"In a very challenging environment, Ciena significantly increased its long-haul DWDM revenue and earned top market share in 2001," said Sterling Perrin, Senior Research Analyst with IDC. "Moving forward, IDC believes that DWDM products, such as Ciena’s, that address carriers' capacity requirements, lower their capital costs and reduce their operating costs, will continue to be well-received in the market."

IDC's methodology for the survey consisted of in-depth, structured interviews that took place over a three-month period with dozens of service providers and vendors. To supplement that primary research, IDC utilized a host of secondary sources, including SEC financial filings, news releases and articles published in trade and business journals, to reach its conclusions.

Ciena, with its flagship CoreStream™ long-haul DWDM product, also gained the lead in North American DWDM share with 30 percent of the market.

Ciena has been widely credited with pioneering the commercialization of DWDM technology with the launch of its MultiWave® 1600 in 1996. At the time, Ciena’s application of DWDM produced an optical networking system that revolutionized the costs for building the transport side of a telecom network. Since then, as a result of Ciena’s continued technology advances and the advent of specific feature sets for applications such as ultra-long haul optical transport, Ciena estimates that it has dramatically reduced capital costs (CapEx) associated with optical transport, in some cases by more than 90 percent. Ciena is now applying that same strategy of reducing carriers’ capital and operational costs to the switching and metro markets.

Due in large part to that cost-cutting focus, Ciena also is the optical switching industry leader, with as much as 60 percent market share, according to most analyst firms. CoreDirector™, the company’s core optical switch, has now been shipped to 30 carriers for their networks.

“We have never wavered from our philosophy of developing optical networking solutions that significantly change carrier network economics,” said Steve Alexander, senior vice president and chief technology officer for Ciena Corp. “It’s all about applying technology to drive down costs for our customers. Our belief is that Ciena’s LightWorks™ solution provides carriers with the most cost-effective network architecture and highest level of automation available today.”