Avanex Corporation (AVNX)

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NEWS[/B]
New Company Will Be A Leader in Optical Solutions For Metro and Long Haul Telecom Networks Annualized Cost Saving Expected to Reach $28 Million SAN JOSE, Calif. and FREMONT, Calif., Jan 27, 2009 /PRNewswire-FirstCall via COMTEX/ -- Bookham, Inc. (BKHM) and Avanex Corporation (AVNX) today announced that they had reached a definitive agreement to merge in an all- stock transaction. Avanex shareholders will receive 5.426 shares of Bookham common stock for every share of Avanex common stock and will own approximately 46.75% of the combined company. It is expected that the combination will be Adjusted EBITDA accretive in the first full quarter after the close of the transaction and will generate $7 million of quarterly cost savings by the end of the fourth full quarter after the close. The new company will have a stronger balance sheet, benefiting from combined cash balances and no outstanding debt. Restructuring costs associated with the transaction are expected to be less than $7 million.