Sumitomo Electric Industries, Ltd.: Integrated Production of Optical Device and Optical Transceiver Started at SPEC in China

Business Wire, April 24, 2008

TOKYO -- Sumitomo Electric Industries, Ltd. (SEI) (TOKYO: 5802) (ISIN: JP3407400005), today announced the expansion of its optical device and optical transceiver manufacturing at Sumitomo Electric Photo-Electronics Components (Suzhou), Ltd. (SPEC) in China from April 2008.

SEI, an established manufacturer of optical components and modules, announced the addition of a new integrated production site in China. The new facility adds an additional 155,000 Sq ft to its existing 5 optical component/module manufacturing plants.

Fiber optic components such as optical devices and optical transceivers not only have expanded to public communication applications and optical LANs, but also to Fiber-to-the-Home (FTTH). This market continues to grow at 15% per year. Under such circumstances SEI has continued development and production of fiber optic components mainly in Japan for more than 20 years. SEI has delivered high quality products to worldwide customers during this period.

This time SEI has established SPEC in Suzhou, China and started production this month in order to achieve stable supply of fiber optic components and modules for the global optics market corresponding to the market growth and need to satisfy worldwide customers with shorter lead time.

Initially, SPEC began production of low bit rate optical transceivers whose demand is the largest for public communications and optical LANs applications. Later this year, SPEC will start the production of high bit rate optical transceivers whose demand is expected to increase dramatically in the future.

Increased production capacity brings following advantages.

(1) Integrated production

The production of the light source transmitter optical sub-assembly (TOSA) and detector receiver optical sub-assembly (ROSA) at the upper end of the process and the assembly and inspection of the optical transceiver at final process have been conducted at separate factories in Japan. The new facility expands SEI manufacturing capabilities to deliver components and modules at one location.

(2) Shorter lead time

The additional manufacturing capabilities will enable shorter lead times to meet the demands of customers looking to reduce their inventory levels.

(3) Increased production capacity

As SEI continues the production at the factories in Japan, the SPEC will increase production capacity by 50%.

About Sumitomo Electric Industries, Ltd.

Sumitomo Electric Industries, Ltd. (SEI) designs, manufactures and sells optical fiber, cable and components, advanced electronic devices, and automotive parts. Through a successful strategy of research and diversification, SEI has become one of the world's leading companies at the forefront of the revolution in information and communications. The company has operations around the world in more than 30 countries and employs over 130,000 people. SEI reported group net sales of USD 20 billion for the year ended March 2007. www.sei.co.jp/index.en.html

About ExceLight Communications

ExceLight Communications, Inc., a subsidiary of Sumitomo Electric Industries, is a leading provider of optical components and modules to the telecom, CATV, broadband, and data communications markets. ExceLight offers a comprehensive array of transceivers, transmitters, receivers, lasers, photodiodes, and passive components.

Sumitomo's world-class research and manufacturing capabilities in optical technology continue to expand and strengthen the product portfolio while maintaining industry leading levels of reliability. ExceLight focuses on the "Americas" (geographically) and the well-established global presence of Sumitomo allows integrated support to customer facilities throughout the world. www.excelight.com