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OVUM DETERMINES GLOBAL WDM MARKET IS $1.2 BILLION IN 1998

CIENA Estimates WDM Worldwide Market Share Of 38 Percent

Ciena Corporation (Nasdaq: CIEN) today highlighted important market data derived from a recently completed independent research report. Based on Ciena's fiscal 1998 revenues, and the research report's findings of worldwide market size, Ciena claims a 38% share of the worldwide wavelength division multiplexing (WDM) market, and a significantly higher worldwide market share for 16-channel and above dense wavelength division multiplexing (DWDM) systems.

The study, believed to be the first ever on the global WDM systems market, was completed by Ovum, a leading international telecommunications research firm. Ovum's research, based on purchasing information provided by service providers worldwide, determined that carriers spent an estimated $1.2 billion (U.S. dollars) on WDM equipment in 1998. Carriers projected that its WDM spending would increase significantly in the future.

Ovum's findings also show that WDM spending for 1999 is anticipated to increase over 1998 levels, and that carriers expect to shift purchasing patterns to favor higher-channel count WDM products.

"WDM has won worldwide acceptance as a fiber exhaust solution, and is increasingly earning recognition as the foundation for optical networking," said Dr. Barry Flanigan, senior analyst at Ovum. "In 1999, WDM will be used to further increase bandwidth in long-haul telephony networks, as carriers move towards higher channel WDM systems. As carriers start to evolve the next generation of telecoms networks, we expect the emphasis will begin to shift towards more sophisticated optical networking applications that emphasize simpler network architectures, transporting IP and ATM-based traffic directly over WDM."

"Ovum's research offers evidence that as the new-kid-on-the-block, Ciena's been able to leverage its first-mover advantage and technology lead to build a substantial market presence, particularly in the international arena," said Steve Chaddick, Ciena's senior vice president of strategy and corporate development. "Even more importantly, as a result of the work done by Ovum and other industry analysts, it is becoming more evident the worldwide opportunity for DWDM and optical networking is large and growing."

For more information about Ovum's "WDM Global Strategies for Next Generation Networks" or to purchase the report, please contact Ovum Ltd. at 44 171 255 2670 in London or 800/642-OVUM in Massachusetts.