Avanex Stockholders Authorize Potential Reverse Stock Split

Business Wire,  July 11, 2008  

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FREMONT, Calif. -- Avanex Corporation (NASDAQ:AVNX), a leader in telecommunication components that enable next-generation optical networks, today announced that at a special meeting of stockholders held on July 9, 2008, the stockholders authorized the Board of Directors to effect a reverse split of its common stock at any time before the annual meeting of stockholders in 2009 at a ratio ranging from 10-for-1 to 15-for-1. The Board of Directors will be assessing the appropriateness and size of a reverse split. If a reverse split is approved by the Board of Directors, the result would be that a specific number of shares of common stock between and including ten and fifteen would be combined into one share of common stock.

"We are pleased with the support of our stockholders in authorizing the Board to effect a reverse split, and the confidence that it represents in Avanex going forward," said Dr. Giovanni Barbarossa, Avanex's Interim CEO.

About Avanex

Avanex Corporation meets the needs of fiber optic communications networks for greater capacity, longer distance transmissions, improved connectivity, higher speeds and lower costs. Our solutions enable optical wavelength multiplexing, dispersion compensation, switching and routing, transmission, and amplification, and include network-managed subsystems. Avanex Corporation, incorporated in 1997, is headquartered in Fremont, California, and maintains facilities in New York, Florida, China, France, Italy, and Thailand. To learn more about Avanex Corporation, visit our Web site at: www.avanex.com.

Forward-looking Statements

This press release contains forward-looking statements, including statements regarding the possibility of a reverse stock split. Actual results could differ materially from those projected in or contemplated by the forward-looking statements. Factors that could cause actual results to differ include the existing and expected marketability and liquidity of the common stock, the need to meet the continued listing requirements of the Nasdaq Global Market, prevailing market conditions and the likely effect of a reverse split on the market price of the common stock.

Finally, please refer to the risk factors contained in the Company's SEC filings including the Company's Annual Report on Form 10-K filed with the SEC on Sept. 7, 2007, Quarterly Report on Form 10-Q filed with the SEC on May 2, 2008 and subsequent filings with the SEC.

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