Revenues in the second quarter of 2009 were $4.1 million compared to $4.1 million in the previous quarter ended March 31, 2009 and $3.1 million in the comparable quarter last year. Net loss for the quarter ended June 30, 2009 was $5.3 million, or $(0.32) per diluted share, compared to a net loss of 4.1 million, or $(0.45) per diluted share, for the previous quarter ended March 31, 2009 and a net loss of $7.8 million, or $(0.48) per diluted share, for the second quarter of 2008. Adjustments related to the valuation of the conversion terms of the Company's convertible notes issued in March 2007 resulted in financial expense of $8,000 in the quarter ended June 30, 2009, financial expense of $808,000 in the quarter ended March 31, 2009 and financial income of $985,000 in the quarter ended June 30, 2008.

Revenues for the six months ended June 30, 2009 were $8.2 million compared to $5.1 million for the six months ended June 30, 2008. Net loss for the six months ended June 30, 2009 was $9.4 million, or $(0.57) per diluted share, compared to $15.5 million, or $(0.95) per diluted share, for the six months ended June 30, 2008. Adjustments related to the valuation of the conversion terms of the Company's convertible notes resulted in financial expense of $816,000 in the six months ended June 30, 2009 and financial income of $1.4 million in the six months ended June 30, 2008.

Results for the quarter ended March 31, 2009 and for the six months ended June 30, 2009 include financial income of $3.0 million resulting from the repurchase in the first quarter of 2009 of a portion of the Company's convertible notes.

Key Highlights for the Quarter:

    -- Selected by MetroNet, a leading Mexican carrier-of-carriers, to     deploy our CM-4000 Carrier Ethernet and Transport portfolio;  -- Signed agreement with a North American carrier and recognized     revenues for previous commercial shipments;  -- In advanced selection stages by Tier 1 operator in Asia;  -- The magazine "Network Products Guide", telecom's leading     publication on information technologies, named the CM-4140     product a winner of the 2009 Product Innovation Award in the     Carrier Ethernet Switch Category; and  -- Additional customer evaluations are ongoing. 

Izhak Tamir, President of Orckit, commented, "Our results for the second quarter met our expectations which were affected by the current economic environment. While this economic environment does not provide us with much visibility for the remainder of 2009, we believe we have a lot to look forward to in 2010 as recent selections are expected to go into the commercial stage of deployment of our metro products next year."

Mr. Tamir continued, "Customers continue to deploy our solutions to expand and build out network infrastructure projects already underway. We have also proved our ability to build our customer base over the past year, and have added MetroNet as a customer this quarter. We now have presence in Brazil, Mexico, the US, Europe, India, Korea and Japan. Many of our recent goals have focused on execution to secure new customer wins."

"Furthermore, our continuous technology enhancements that have added new features and capabilities to our CM-4000 product lines leave us well positioned to addresses carriers' needs for converged network products. Carriers value an optimized mixture of features and cost, as well as interoperability, particularly during an economic downturn. We believe that providing these qualities to carriers gives us a competitive advantage as these are our key differentiators. Feedback on the CM-4140 remains positive and the product continues to maintain its leadership position in its segment," added Mr. Tamir.

Mr. Tamir concluded, "Diversifying our customer base and growing revenue continue to be our top priorities. We believe we are well positioned to achieve both as our excellent product line has attracted strong interest from service providers looking to expand their networks. Despite a worldwide challenging economic environment, we remain optimistic about the future of Orckit."

Conference Call

Orckit Communications will host a conference call on August 12, 2009, at 9 a.m. EDT. The call can be accessed by dialing (877) 316-9044 in the United States and (706) 634-2329 internationally. Please utilize the code 18102652. A replay of the call will be available at www.orckit.com and will be also available through 11:59 p.m on September 12, 2009 at 1-800-642-1687 in the United States or 1-706-645-9291 internationally.