Lightbit Announces its Pure-Optical Processor Chip Technology

Lightbit, an optical startup, has developed technology that reduces the cost of handling DWDM channels by replacing transponders in optical transmission systems. This is the venture-funded company's first public announcement.

MOUNTAIN VIEW, CA -- March 7, 2003 -- Lightbit Corporation, an optical telecommunications subsystem provider, today announced its pure-optical processor chip technology, which will vastly reduce the system cost for handling multiple channels over optical fiber networks.

Lightbit has developed a pure-optical chip that delivers a breakthrough in its ability to process multiple DWDM channels simultaneously, without requiring electronic conversion. A single Lightbit optical processor can replace multiple Optical-Electrical-Optical (OEO) transponders, typically the most expensive equipment in todays fiber-optic networks.

Applications supported by Lightbit subsystems include optical regeneration and multi-channel wavelength (band) conversion. Lightbits platform technology enables customers to build cost-effective optical networks with increased reach and performance.

Our chip harnesses the parallel processing power of light. We dramatically reduce per-channel cost of DWDM systems through multi-channel optical processing, just as the EDFA enabled dramatic cost reductions through multi-channel optical amplification," says Larry Marshall, Lightbit CEO. In the midst of the current economic downturn, both carriers and system vendors alike are eager to achieve these cost savings."

Lightbits proprietary process transforms a material commonly used in telecom into a powerful, pure optical processor. Chips are manufactured in Lightbits optical FAB, leveraging IC-industry, wafer-scale processes to minimize cost. Lightbit has a strong intellectual property portfolio protecting its technology, processes and products.

Lightbits products are bit-rate and protocol independent, protecting customers from future upgrade costs. This contrasts sharply with bit-rate limited and protocol-specific OEO solutions. Additional characteristics include a wide operating bandwidth which can be tuned to C, L or S bands.

Optical transport system vendors constantly search for technologies and products that could increase the reach and lower the cost of transport," said Fahri Diner, founder and former CEO of Qtera Corporation, a leading provider of ultra-long haul optical transport systems acquired by Nortel Networks in 2000. Lightbits multi-channel optical processor chip is a critical piece of the puzzle that will help achieve precisely that goal for the next generation optical transport platforms."

To develop products using this novel technology, Lightbit has assembled an experienced team with solid track records in both startups and public companies. Lightbits management team and directors previously filled senior roles at companies such as Lucent Technologies, Fujitsu, JDS Uniphase, Avanex, Bell Labs, Pirelli Telecom Systems and Tektronix, and have successfully executed several IPOs and acquisitions at their previous companies.

Lightbit is backed by tier-one venture capital firms Mayfield and Accel Partners, as well as telecom industry luminaries. We believe Lightbit has the potential to gain a dominant share in their market segment. They have a great technology, experienced management and the resources to build a sustainable business," said Todd Brooks, general partner at Mayfield and a Lightbit Director.

In January 2003, Lightbit was awarded the 2002 Photonics Circle of Excellence Award for its BandXchange optical processor subsystem. The award has been given annually for the past 15 years by Photonics Spectra magazine. Lightbit will publicly announce its first product at the Optical Fiber Communications (OFC) conference in Atlanta in late March.

For more information regarding Lightbit, contact Gabriel Kra at (650) 988-9500 ext 712, or Gabriel@lightbit.com.