Finisar and BaySpec Call Off Merger

Sunnyvale, CA, June 3, 2002 -- Finisar Corp., a supplier of gigabit fiber optic solutions for high-speed computer networks, and BaySpec, Inc., an innovator in the application of volume phase gratings for combining and splitting multiple wavelengths in telecom networks, have mutually agreed to terminate the proposed merger of BaySpec into Finisar.

"Current market conditions as well as the outlook for capex spending within the telecommunications industry, make it difficult to complete the BaySpec acquisition as planned," said Jerry Rawls, Finisar's President and CEO. "However, we continue to view BaySpec as a fine company with innovative technology and hope to find other ways in which we can work together in the future."

"This is a difficult time for telecom equipment companies. While the merger with Finisar was a good idea under different conditions, the recent degradation in the stock market and the declining outlook for telecom capital spending have made the transaction more difficult and less compelling," said William Yang, President and CEO of BaySpec. "Nevertheless, we hope to find ways to do business with Finisar in the future."

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