Finisar Announces Spin-Off of NetWisdom Business


SUNNYVALE, CA--(Marketwire - June 12, 2008) - Finisar Corporation (NASDAQ: FNSR), a global technology leader in fiber optic communication and test and measurement solutions for high-speed networks, today announced that it had completed a transaction whereby it spun-off certain assets of its Network Tools business associated with its NetWisdom® business to an investment group of storage and software sector veterans, led by Mark Urdahl, a former IBM executive who co-founded the Fibre Channel Systems Initiative, Jim Davidson, a founding partner of Silver Lake Partners, and Steve Mankoff, a former senior executive at Siebel Systems. Finisar will retain a minority stake in the spin-off.


The NetWisdom product line, an industry-leading software and hardware solution, is used for monitoring and analysis of SAN environments within enterprise data centers. NetWisdom provides real time monitoring and proactive analysis of complex SAN issues. The award-winning solution has been adopted by leading Global 500 enterprise data centers to ensure uninterrupted access to business critical information.

"Our commitment to customers is always a top priority, and we believe a dedicated, stand-alone entity will better serve our customers. We expect a smooth transition for existing NetWisdom customers as a result of this transaction," said Jerry Rawls, Chairman and CEO of Finisar. "We have made excellent progress in this part of our business, but we have confidence that this team of private equity investors will provide the growth capital and singular focus desired for this business grow rapidly and satisfy customer demand in the enterprise data center market."

"I have known and worked with Jerry Rawls and Finisar since 1993 when we started the Fiber Channel SAN initiative," said Mark Urdahl. "The scale and complexity of today's Storage Area Networks has far exceeded our expectations. The NetWisdom product line solves a critical challenge for today's rapidly growing data centers. I am excited about the opportunity to invest significantly in this product platform and work closely with our partners and systems integrators to better serve needs of customers."

About Finisar

Finisar Corporation (NASDAQ: FNSR) is a global technology leader for fiber optic components and subsystems and network test and monitoring systems. These products enable high-speed voice, video and data communications for networking, storage and wireless applications over Local Area Networks (LANs), Storage Area Networks (SANs), and Metropolitan Area Networks (MANs) using Ethernet, Fibre Channel, IP, SAS, SATA and SONET/SDH protocols. The Company is headquartered in Sunnyvale, California, USA. More information can be found at www.finisar.com.

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The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding Finisar's expectations, beliefs, intentions, or strategies regarding the future. All forward-looking statements included in this press release are based upon information available to Finisar as of the date hereof, and Finisar assumes no obligation to update any such forward-looking statements. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those projected. These risks include those associated with the rapidly evolving markets for Finisar's products and uncertainty regarding the development of these markets; Finisar's historical dependence on sales to a limited number of customers and fluctuations in the mix of customers in any period; ongoing new product development and introduction of new and enhanced products; the challenges of rapid growth followed by periods of contraction; and intensive competition. Further information regarding these and other risks relating to Finisar's business is set forth in Finisar's Annual Report on Form 10-K and other interim reports as filed with the Securities and Exchange Commission.

Contact Information: CONTACTS: Steve Workman Chief Financial Officer 408-548-1000 Investor.relations@finisar.com Victoria McDonald Corporate Communications 408-542-4261 Victoria.mcdonald@finisar.com