Digital Lightwave Dismissed From Appeal of Class Action Settlement; Decision Finalizes Settlement of Class Action Suit Against Company

Business Wire, March 20, 2000

Business Editors and High Tech Writers

CLEARWATER, Fla.--(BUSINESS WIRE)--March 20, 2000

Digital Lightwave(R), Inc. (Nasdaq:DIGL), a leading provider of innovative optical networking products and technology, today announced that the United States Court of Appeals for the Eleventh Circuit has dismissed all parts of the pending appeal of the securities class action settlement which pertain to the company. As a result, the district court's April 30, 1999 judgment approving the settlement of the class action is final. Distribution of the settlement fund, which consists of 1.8 million shares of Digital Lightwave common stock and $4.25 million cash, is expected to commence following the district court's approval of a distribution plan submitted by the court-appointed claims administrator.

The remaining portion of the appeal does not pertain to the company but, rather, to the award of attorneys' fees and costs to counsel for the class plaintiffs. "We are pleased that this matter can now be put behind us so that we can further focus our attention on running the business," said Gerry Chastelet, chairman, president and chief executive officer of Digital Lightwave.

Class members should access information regarding the distribution of the settlement fund at www.bermanesq.com.

About Digital Lightwave, Inc.

Digital Lightwave serves the growing fiber-optic networking industry--high-speed telecommunications networks based on fiber-optic technology--with products and technology that monitor, maintain and facilitate the management of voice, data and multimedia communications networks. Digital Lightwave customers include leading telecommunications service providers and equipment manufacturers. The company is headquartered in Clearwater, Florida, and can be located on the Internet at http://www.lightwave.com

Except for the historical statements made herein, this release contains certain forward-looking statements that may involve a number of risks and uncertainties. Factors that could cause actual results or events to differ materially from these forward-looking statements include: quarterly fluctuations in the company's operating results; control by a majority shareholder; dependence on a limited number of products; rapid technological changes; the company's ability to compete effectively with other companies; the company's dependence on major customers; the company's dependence on contract manufacturing and limited source suppliers; delays in product development and delivery schedules; the company's ability to expand its production and assembly operations; the company's ability to manage its growth; the company's ability to enter into strategic relationships; the company's dependence on key personnel; the company's dependence on proprietary technology; the company's success in defending significant litigation; liquidity risk and future capital needs; general business conditions; and other factors described in the company's filings with the Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We assume no obligation to update information contained in this release.