CIENA ANNOUNCES ORGANIZATIONAL CHANGES TO FACILITATE PRODUCT INTEGRATION AND OPERATIONAL EFFICIENCIES

Linthicum, MD — 07/12/2002

Ciena Corporation (NASDAQ: CIEN), a leading provider of intelligent optical networking systems and software, today announced that it has realigned its organizational resources to better deliver on key business strategies and to realize operational efficiencies. The realignment supports the Company’s focus on top-tier service providers worldwide and its aggressive steps to integrate its next-generation transport and switching product lines. Ciena continues to pursue its previously announced strategy of balancing sustained investment with prudent expense management.

Supporting these goals, Ciena has combined four product development organizations (Core Transport, Core Switching, Metro Transport and Metro Switching) into two streamlined teams, Core Networking and Metro Networking. By integrating the functionality of transport and switching features across core and metro networks respectively, Ciena is working to further improve the economics of service provider networks by combining multiple network elements into the next generation of highly intelligent, scalable, multi-function systems.

In addition, Ciena has created a new development team called LightWorks™ Solutions. Leveraging Ciena’s unique ability to deliver a complete next-generation network architecture, the LightWorks Solutions group will focus on intelligent tools and features spanning both metro and core networks to help carriers operate end-to-end networks with optimal efficiency and greatly reduced expense. This team combines Network Management, Network Design & Tools, Systems Engineering and Ciena’s Solutions Lab.

Under the seasoned leadership of Jesús León, Ciena’s new Chief Development Officer, the three new product development organizations will create operational efficiencies and drive next-generation product innovations to market faster. These teams will be managed by Beth Perry, senior vice president, Core Networking Group; Rusty Cumpston, senior vice president, Metro Networking Group; and Paul Mitalas, senior vice president, LightWorks Solutions Group.

Michael McCarthy continues to lead Ciena’s Worldwide Sales and Support as Senior Vice President. Under his leadership Ciena has made changes to its Worldwide Sales and Customer Support organization to ensure that the Company’s award-winning service levels are maintained as it increases its presence with the world’s largest service providers. Because Ciena recognizes the importance of world-class service and support for these target accounts, all customer-facing corporate service, quality and training functions have been consolidated in a new worldwide service structure led by Arthur Smith, senior vice president, Worldwide Customer Services and Support. This part of the sales and support organization will drive a holistic solutions-based service approach to Ciena’s customer support and will apply Ciena’s intelligent service tools to further reduce network operations costs.

“Recent contract wins from some of the world’s strongest service providers attest to the early success Ciena is seeing as a result of our increased focus on incumbent carriers. While we do not underestimate the challenges ahead of us, we believe that Ciena is increasingly well positioned at these strategic accounts, and we expect our ongoing efforts will yield additional positive results,” said Gary Smith, Ciena’s president and CEO. “The organizational changes announced today reflect Ciena’s continued commitment to strategic customer relationships by driving integrated, cost-saving solutions to market with greater speed and efficiency. This structure will enable us to make and implement decisions faster, to increase attention on customer needs, and to work more collaboratively across product teams.”

Smith continued: “Agility, focus and efficiency are some of the cultural characteristics that have propelled Ciena into its leadership position. Now more than ever, in a market that requires us to remain focused on the critical strategies for success, this streamlined organization gives us the framework to take advantage of our strategic assets – our complete portfolio of next-generation products, our customer credibility, our culture and our strong balance sheet – to be the clear, long-term winner in optical networking.”


About Ciena

Ciena Corporation’s market-leading intelligent optical networking systems form the core for the new era of networks and services worldwide. Ciena’s LightWorks™ architecture enables next-generation optical services and changes the fundamental economics of service-provider networks by simplifying the network and reducing the cost to operate it. Additional information about Ciena can be found at www.Ciena.com.
Note to Investors

This press release contains certain forward-looking statements based on current expectations, forecasts and assumptions of Ciena (the Company) that involve risks and uncertainties. Forward-looking statements in this release, including, but not limited to Ciena continues to pursue its previously announced strategy of balancing sustained investment with prudent expense management, the three new product development organizations will create operational efficiencies and drive next-generation product innovations to market faster, recent contract wins from some of the world’s strongest service providers attest to the early success we are seeing as a result of our increased focus on incumbent carriers, while we do not underestimate the challenges ahead of us, we believe that Ciena is increasingly well positioned at these strategic accounts, and we expect our ongoing efforts will yield additional positive results, this structure will enable us to make and implement decisions faster, to increase attention on customer needs, and to work more collaboratively across product teams, now more than ever, in a market that requires us to remain focused on the critical strategies for success, this streamlined organization gives us the framework to take advantage of our strategic assets – our complete portfolio of next-generation products, our customer credibility, our culture and our strong balance sheet – to be the clear, long-term winner in optical networking, are based on information available to the Company as of the date hereof. The Company’s actual results could differ materially from those stated or implied in such forward-looking statements, due to risks and uncertainties associated with the Company’s business, which include the risk factors disclosed in the Company’s Report on Form 10-Q filed with the Securities and Exchange Commission on May 23, 2002. Forward-looking statements include statements regarding the Company’s expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “will,” and “would” or similar words. The Company assumes no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise.

Press Contacts:
Nicole Anderson
Ciena Corporation
(877) 857 -7377
pr@ciena.com
Investor Contacts:
Marie Downing
Ciena Corporation
(888) 243-6223
ir@ciena.com