San Diego, CA, March 10, 2003. Sorrento Networks has executed a definitive restructuring agreement with its convertible debenture holders and the Series A preferred stockholders of its optical networking subsidiary, Sorrento Networks, Inc. (SNI).

The Company also announced that it filed a preliminary proxy statement with the Securities and Exchange Commission (SEC) for shareholder approval of the capital restructuring, its reincorporation as a Delaware corporation, and a new employee equity incentive plan.

Commenting on this accomplishment, Phil Arneson, chairman and chief executive officer, stated, "We are very pleased to have reached this significant milestone with our convertible debenture holders and Series A preferred stockholders. Completion of this transaction will dramatically improve the Company's balance sheet and will clear the way for us to continue executing our business plan and provide the financing flexibility to drive future growth."

For more information, visit www.sorrentonet.com .

WDM Solutions

Mon Mar 10 05:34:00 CST 2003