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WaveSplitter Announces Joint Development Effort with NEC to Produce Dynamic Gain Flattening Filters

FREMONT ,CA- March 18, 2002 - WaveSplitter Technologies, Inc., a worldwide supplier of integrated optical components and modules for advanced optical networks, announced today a joint development effort with NEC Corporation (NASDAQ:NIPNY) (FTSE:6701q.1) (TSE: 6701) to produce dynamic gain flattening filters (DGFF), a key component to balance unequal amplifier gain in DWDM networks. The joint development product is based on a novel design manufactured using planar lightwave circuits, offering the promise of reliability and automated, low-cost manufacturing. This partnership combines NEC's system application design and electronic control circuit expertise with WaveSplitter's optical design and packaging capability to rapidly deliver an innovative product to market.

"The dynamic gain flattening filter is a critical element for next-generation networks," said Keiichi Takahashi, General Manager, Fiber Optic Devices Division, NEC Corporation. "Partnering with WaveSplitter allowed us to design an innovative product that not only meet the network design criteria, but will also meet the reliability and volume cost requirements for the DGFF to penetrate the network."

"Partnering with NEC combines their strong system level understanding with WaveSplitter's optical design expertise," said Bill Diamond, President and CEO of WaveSplitter. "This combination not only shortens the time to market by combining resources, it also insures that the product has the right features to meet the needs of the network architect-features such as small size, low ripple and low power consumption."

The dynamic gain flattening filter is used to optimize DWDM system performance by compensating for the uneven gain in optical amplifiers. The gain of optical amplifiers varies across the wavelength range, and this difference creates signal-to-noise problems in systems with cascaded amplifier chains, potentially limiting the distance a signal can travel without regeneration. Dynamic gain flattening filters compensate for this uneven gain even under varying network conditions, preserving the signal-to-noise performance and allowing transmission of signals over long distances with minimal regeneration.

About WaveSplitter Technologies, Inc.
WaveSplitter Technologies, Inc. is a leading provider of cost-effective active, dynamic and passive components and modules for advanced metropolitan and long-haul optical networks. WaveSplitter's intelligent integrated products offer system manufacturers greater functionality in smaller packages and at lower cost than incumbent discrete technologies. WaveSplitter was founded in 1996 and is headquartered in Fremont, California. For further information, please visit the WaveSplitter home page at: http://www.wavesplitter.com.

About NEC Corporation
NEC Corporation (NASDAQ: NIPNY) (FTSE: 6701q.l) is a leading provider of Internet solutions, dedicated to meeting the specialized needs of its customers in the key computer, network and electron device fields through its three market-focused in-house companies: NEC Solutions, NEC Networks and NEC Electron Devices. NEC Corporation, with its in-house companies, employs more than 150,000 people worldwide and saw net sales of 5,409 billion Yen (approx. US$43 billion) in fiscal year 2000-2001. For further information, please visit the NEC home page at: http://www.nec.com


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WaveSplitter Technologies, Inc.
Phone: 510-651-7800 x 243
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