CODEON Quantum Photonics Merge to Form Covega

Jessup, MD, March 7, 2003. Optical component companies CODEON and Quantum Photonics have completed their merger and the closing of a significant round of financing. The new company, Covega Corporation, raised $17 million as part of its Series A round of financing, participants in which included New Enterprise Associates, OCG Ventures, Boulder Ventures, Core Capital Partners, EDB Ventures, Intersouth Partners, Kinetic Ventures and Siemens Venture Capital.

Covega will provide optical components, modules and subsystems to the telecommunications, data communications, military and cable television industries. Robert Harvey, formerly the CEO of CODEON, has been named CEO of the new company. Dan Petrescu, the CEO of Quantum Photonics, will serve as President
of the company. Covega's headquarters will be located in Jessup, MD.

"This merger brings together critical, complementary technologies with industry-leading technical teams, a seasoned management team, and solid customer and revenue bases. We will also consolidate the production and manufacturing operations of both companies into one state-of-the-art facility," said Mr. Harvey. "The result of the merger and the financing is a well-positioned, well-funded organization able to lead the market in delivering innovative, cost-effective communications solutions."

Covega's customers will benefit from a wide variety of products and a high level of integration at dramatically reduced cost and complexity. The combined company will offer an expanded product portfolio, enabling it to supply a comprehensive range of solutions to a more diverse customer base.

The merger also creates a company positioned to be a leading supplier of active optical components, such as semiconductor lasers diodes, semiconductor optical amplifiers and gain modules, and high-speed modulators. Utilizing hybrid integration technologies to create highly functional transmission modules, Covega will enable its customers to simplify the design and production of their communications systems. The combined company has a shared customer base of more than 30 communications systems companies.

For more information, visit either www.codeoncorp.com or www.quantumphotonics.com .

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