Sycamore Networks, Inc. (NASDAQ: SCMR), in response to current economic conditions and reduced capital expenditures in the global telecommunications market, today announced a workforce reduction of approximately 30 percent. The reduction is expected to be completed over the next several quarters and will affect all functional organizations and multiple geographic locations. The Company expects that this action, when completed, will result in an annualized cost savings in the range of $17.0 million to $18.0 million.

“We continue to face a challenging operating environment that requires us to make difficult decisions,” said Daniel E. Smith, president and chief executive officer. “We believe the action announced today, coupled with our ongoing focus on expense control, will help us streamline operations while retaining the resources necessary to meet our ongoing customer commitments, enhance our product offerings, and continue to deliver excellence in customer support.”

As a result of these actions, the Company expects to incur aggregate restructuring charges in the range of $4.0 million to $5.0 million over the next several quarters primarily associated with employee separation packages, which include severance pay, benefits continuation, and outplacement services.

About Sycamore Networks

Sycamore Networks, Inc. (NASDAQ: SCMR) is a leading provider of intelligent bandwidth management solutions for fixed line and mobile network operators worldwide. From multiservice access networks to the optical core, Sycamore products enable network operators to lower overall network costs, increase operational efficiencies, and rapidly deploy new revenue-generating services. Sycamore's global customer base includes Tier 1 service providers, government agencies, and utility companies. For more information, please visit www.sycamorenet.com.

We wish to caution you that certain matters discussed in this news release constitute forward-looking statements regarding future events that involve risks and uncertainties.