Proprietary & Confidential1 OPLL vision... Coherent WDM systems:  INCREASED BANDWIDTH BY > 10 X  LOWER COST PER BIT  Closely spaced, long haul WDM systems  2.5 Gbps per  5-10 GHz spacing  4000 km  HIGH OPTICAL BANDWIDTH EFFICIENCY  TRANSPARENT OPTICAL NETWORK

Proprietary & Confidential2 OPLL Competitive Advantage OPLL narrow linewidth laser patented and proven DFB laser technology narrows spectrum from > 10 MHz to < 10 kHz reduces phase noise by > 1000 X Low intensity noise laser for today increased signal to noise ratio improved receiver sensitivity reduced fiber network cost Stable, low phase noise laser for tomorrow required for coherent applications current solutions are expensive, fragile and unstable

Proprietary & Confidential3 Narrow Spectral Linewidth before OPLL linewidth measured with Er laser 3+

Proprietary & Confidential4 Narrow Spectral Linewidth with OPLL linewidth measured with Er laser 3+

Proprietary & Confidential5 Short Term Frequency Stability before OPLL phase noise measured at  t = 150  s

Proprietary & Confidential6 Short Term Frequency Stability phase noise measured at  t = 150  s with OPLL

Proprietary & Confidential7 How it is done OPLL Block Diagram

Proprietary & Confidential8 What Is Coherent Communications? Direct detection systems currently deployed sensitive only to INTENSITY of light detects whether the light is ‘on’ or ‘off’ Coherent systems sensitive to PHASE of light received light mixed with local laser oscillator optical gain at the receiver Analogous to AM versus FM radio substantial technology advancement increased transmission distances significantly improved signal quality

Proprietary & Confidential9 Why Coherent? Improved receiver sensitivity “Up to 20 dB” 1 improvement over direct detection “Up to an additional 100 km” 1 in transmission distance at same power (1) Govind Agrawal - Fiber Optic Communications. Efficient use of fiber  spacing of 5-10 GHz are required to get >10 X MORE DATA within existing dispersion limits High flexibility transparent optical network REDUCED COST PER TRANSMITTED BIT!

Proprietary & Confidential10 Pittsburgh Boston Philadelphia New York Traditional Networks Amplifier WDM Mux / Demux

Proprietary & Confidential11 Pittsburgh Boston Philadelphia New York Coherent Networks - all s available everywhere - fewer amplifiers required - eliminate WDM demultiplexers

Proprietary & Confidential12 Market Opportunity Source: Pioneer Consulting

Proprietary & Confidential13 Roadmap To Coherent 2000 Narrow linewidth, direct modulation laser (prototype) 2001 Fiber RIN Model (Phase I) Long term stable, external modulation laser 2.5 Gbps, sub-kHz linewidth Optical frequency standards Sub-kHz accuracy, 10 GHz resolution 2002 Fiber RIN Model (Phase II) Heterodyne receiver DBR laser, 2 THz tunability, 10 GHz resolution 2003 Coherent WDM 128 – 256 s, 10 GHz spacing

Proprietary & Confidential14 Roadmap To Market Entry 2001 Direct modulation laser transmitter targeting metropolitan networks simultaneously supports on each laser Gigabit Ethernet SONET (OC-48) Fibre channel 2002 External modulation laser transmitter targeting long haul networks 2003 Coherent WDM

Proprietary & Confidential15 Opportunities Along The Way Narrow linewidth laser transmitters provide improved dispersion performance low intensity noise (high SNR) low bit error rate Market opportunities to be exploited low cost metropolitan networks high performance long haul networks wide bandwidth WDM

Proprietary & Confidential16 Existing prototypes Lowest cost solution for metropolitan networks Improved QAM transmissions over short to moderate links up to 70 km proven (without amplifiers) up to 400 km possible (with amplifiers) Direct Modulation Transmitter

Proprietary & Confidential17 Direct Modulation Transmitter constellation diagram at 70 km (SMF-28)

Proprietary & Confidential18 Direct Modulation Transmitter eye diagram at 70 km (SMF-28)

Proprietary & Confidential19 Management Team Dr. L. B., CEO former founder / CEO of healthcare startup OPLL angel investor B. M., CTO inventor of OPLL technologies 16 years of photonics research R. W., VP Marketing / Sales Ericsson, Centerpoint, Acuity Imaging, Bytex, DEC DWDM marketing and sales with Ericsson Dr. M. M., VP Engineering Bell Labs, Ericsson, Bytex, Tridom Al G., VP Manufacturing Hughes Aircraft, Coyote Technologies, Gehr Industries, S. G., Director of Finance / Business Development Hicks Muse / Chancellor Media, Johnsen Fretty & Co.

Proprietary & Confidential20 Why Invest In OPLL? Coherent WDM breakthrough technology “ahead of the curve” patented enabling technology Immediate direct detection applications Huge market opportunity Startup seasoned Management team