Bookham Technology plc announces realignment of manufacturing resources

Taking advantage of its acquisition of Marconi's optical component business earlier this year, Bookham Technology plc (LSE: BHM, Nasdaq: BKHM) today announced it will concentrate its worldwide production in two out of its current four facilities, manufacturing ASOC components at its Milton facility and active components at its Caswell site.

Oxfordshire, UK - 3 July 2002: Taking advantage of its acquisition of Marconi's optical component business earlier this year, Bookham Technology plc (LSE: BHM, Nasdaq: BKHM) today announced it will concentrate its worldwide production in two out of its current four facilities, manufacturing ASOC components at its Milton facility and active components at its Caswell site. Through an ongoing process efficiency programme, the company believes that it can now handle component production rates of 200 million ($306 million) at Milton and similar levels at Caswell, permitting it to close its other two facilities in Maryland, US and Swindon, UK. The company believes that these closures will reduce costs without adverse impact on manufacturing capacity or on future sales ramp-up.

The company estimates that its ongoing broader cost reduction efforts, of which the facilities realignment is an important part, will reduce its quarterly cash burn rate to between 10 million and 12 million ($15 million and $18 million), excluding restructuring costs, in the fourth quarter 2002. Following the completion of this cost reduction programme, the company expects to incur exceptional charges of 8 million to 12 million ($12 million to $18 million).

The company will announce its second quarter 2002 results on 30 July 2002 through its normal scheduled press release and conference call. The company's revenue for the quarter ended 30 June 2002 was 7.1 million ($10.9 million) up 27% from first quarter 2002 (5.6 million; $8.6 million), in line with average analyst expectations. The company also reduced its quarterly cash burn to 13.8 million ($21.1 million) from 22.2 million ($33.4 million) in the first quarter 2002, and ended the quarter with 148.8 million ($227.7 million) in cash.
All US dollar numbers have been translated at 1 = $1.53 for the convenience of the reader.

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The company will be hosting a conference call to discuss this release on Wednesday 3 July 2002 at 10.30am (BST), 11.30am (CET), 05.30am (EST). Dial in numbers are as follows:

UK/European participants   +44 (0) 20 8240 8245
US participants         +1 800 513 7968

A taped recording will be available approximately 1 hour after the call ends for 5 days. Dial in numbers are as follows:

UK/European participants   +44 (0) 20 8288 4459
(access code: 679462)

US participants         +1 703 736 7336   
(access code: 679462)

For further information, please contact:

Bookham Technology:

Tel: +44 (0) 1235 837000
Giorgio Anania - President & CEO
Steve Abely - Chief Financial Officer
Sharon Ostaszewska - Director Communications

Financial Dynamics:

Tel: +44 (0) 20 7831 3113
Sarah Marsland
Sarah Manners
Juliet Clarke

Financial Dynamics:

Tel: +1 (212) 497 9202
Deborah Ardern-Jones
Matt Dallas

Bookham Technology (LSE: BHM; Nasdaq: BKHM) designs, manufactures and markets integrated multi-functional active and passive optical components using high volume production methods. Using patented silicon-based ASOC, Gallium Arsenide and Indium Phosphide technologies, the company provides end-to-end networking solutions that offer higher performance and greater systems capability to communications network system providers.

More information on Bookham Technology is available at www.bookham.com
Bookham and ASOC are registered trademarks of Bookham Technology plc

Statements made in this financial commentary and elsewhere in this report include certain forward-looking statements that involve risks and uncertainties. Important factors that could cause actual results to differ from those indicated by such forward-looking statements include, among others, uncertainties relating to demand for the group's products, demand for optical components generally and overall future growth in the market for optical components, uncertainties relating to the group's investment in, and reorganization of, its manufacturing capacity, production equipment and personnel and related impact on profitability, quarterly variations in financial results, manufacturing capacity yields and inventory, intellectual property issues, issues surrounding integration of the optical components business acquired from Marconi and other uncertainties that are discussed in the "Risk Factors" section of the group's annual report on Form 20-F for the fiscal year ended 31 December 2001, dated 21 May 2002, which is on file with the Securities and Exchange Commission. Forward-looking statements represent the group's estimates as of the date made, and should not be relied upon as representing the group's estimates as of any subsequent date. While the group may elect to update forward-looking statements in the future, it disclaims any obligation to do so.

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