"This acquisition provides JDSU with unique capabilities to address the SAN test market's best growth opportunities, such as Fibre Channel over Ethernet," said Dave Holly, president of JDSU's Communications Test and Measurement business segment. "We welcome the Network Tools team to JDSU and look forward to combining our respective strengths to deliver test innovation for the benefit of our customers."

JDSU expects the business to contribute revenue in the mid-to- high single-digit millions of dollars and neutral operating income in the first quarter of fiscal year 2010.

JDSU also announced that it will be issuing grants of compensatory stock option and restricted stock unit awards to employees hired by JDSU in connection with the acquisition. The restricted stock unit and stock option awards to be granted to those employees by JDSU are generally comparable to equity awards that JDSU generally grants to its new employees. These grants were made under the JDS Uniphase Corporation 2005 Acquisition Equity Incentive Plan, which was approved by the Board of Directors of JDSU, but not submitted for the approval of the stockholders of JDSU.

These restricted stock unit and stock option awards were approved by the Compensation Committee of the JDS Uniphase Corporation Board of Directors on July 15, 2009. Pursuant to such approval, on August 15, 2009 JDSU will award restricted stock units and stock options covering a total of 314,700 shares of JDSU common stock. Awards will be granted to 87 employees.

The stock options to be granted will have an exercise price equal to the closing price of JDSU common stock on NASDAQ on August 14, 2009 (i.e., the last regular trading day on NASDAQ prior to the date of grant). The stock options otherwise will contain the same terms and conditions as the standard form of stock option award agreement previously approved by the Board of Directors of JDSU. The material terms of the standard form of stock option agreement are as follows. Stock options vest over a four (4) year period: 25 percent of the shares vest after one year of continuous service with JDSU from the grant date and the remaining shares vest in equal quarterly installments over the next three years of continuous service.