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CIENA Announces Repricing of Employee Options

Ciena Corporation (NASDAQ: CIEN) announced today that its Board of Directors has approved the repricing of stock options held by the Company's employees to an exercise price of $12.375 per share, Ciena's closing price as of September 16, 1998. The repricing is effective today, and applies to all employee stock options which had an exercise price above $12.375.

"The Company has recently experienced first-hand a number of the risks we've regularly discussed as being inherent in growing a dynamic business in an industry dominated by large competitors, and the stock market's reaction has been very adverse," said Patrick Nettles, Ciena's president and chief executive officer. "But our employees are doing everything they can to assure the Company's success in the face of these risks. Our Board of Directors believes strongly that we need our employees' continued energy, focus and determination. We think the option repricing is a critical element in helping us retain and re-incentivize our team, which is an important step toward maintaining and enhancing shareholder value over the long term." Mr. Nettles further noted that the decision to reprice was made by a Board that consists almost entirely of independent directors.

Options held by the Company's executive officers, all of which were granted prior to the Company's initial public offering in February, 1997, were not affected by the repricing action.