Outstanding Debt to Be Reduced by Approximately $47.5 Million

SUNNYVALE, CA -- (Marketwire) -- 08/07/09 -- Finisar Corporation (NASDAQ: FNSR), a global technology leader for fiber optic subsystems and components for communication applications (the "Company"), today announced preliminary results of its separate concurrent exchange offers (each, an "Exchange Offer" and together, the "Exchange Offers") for up to $37.5 million aggregate principal amount of its outstanding Convertible Subordinated Notes due October 2010 (the "Sub Notes") and up to $57.5 million aggregate principal amount of its outstanding Convertible Senior Subordinated Notes due October 2010 (the "Senior Sub Notes," and together with the Sub Notes, the "Notes"). The Exchange Offers expired at 5:00 p.m., New York City time, on Thursday, August 6, 2009.

In accordance with the terms and conditions of the Exchange Offers, as set forth in the Amended and Restated Offer to Exchange, as amended (the "Offer to Exchange"), the related Amended and Restated Letter of Transmittal and other related exchange offer documents, and based on the preliminary count by American Stock Transfer & Trust Company, the depositary for the Exchange Offers, the Company expects to accept for exchange approximately $47.5 million aggregate principal amount of the Notes at an expected price of $870 for each $1,000 principal amount of Notes. Such price consists of (i) $525 in cash and (ii) 596 shares of the Company's common stock per $1,000 principal amount of Notes validly tendered and not withdrawn in each Exchange Offer, for total exchange consideration (excluding interest, fees and other expenses in connection with the Exchange Offers) of approximately $24.9 million in cash and approximately 28.3 million shares of common stock. The common stock portion of the total exchange consideration is equal to the quotient obtained by dividing (x) the value of the total exchange consideration, as determined by the "Modified Dutch Auction" procedure described in the Offer to Exchange, of $870 minus $525 by (y) the average of the daily volume weighted average price of the Company's common stock on the Nasdaq Global Select Market for the five trading days from and including July 16, 2009 to and including July 22, 2009 (the "5-day VWAP"), which, as previously announced, was $0.57866.

Because the holders tendered less than $37.5 million aggregate principal amount of the outstanding Sub Notes and less than $57.5 million aggregate principal amount of the Senior Sub Notes, the Company anticipates that the tendered Notes will not be subject to proration.

The approximately $47.5 million aggregate principal amount of Notes to be exchanged includes approximately $2.2 million principal amount of Notes tendered by notice of guaranteed delivery.