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ADVA Optical Networking Makes Strategic Investment in Saguna Networks

MARTINSRIED, GERMANY and MUNICH, GERMANY -- (Marketwire) -- 11/20/12 -- ADVA Optical Networking SE / ADVA Optical Networking Makes Strategic Investment in Saguna Networks. Processed and transmitted by Thomson Reuters ONE. The issuer is solely responsible for the content of this announcement.

USD 1 Million Investment Underlines Growing Demand for Content Caching in Mobile Backhaul Networks

ADVA Optical Networking today announced that it has made a strategic investment in Saguna Networks and its Content Optimization Delivery Systems (CODS) technology. Saguna Networks' approach to optimizing content delivery in mobile backhaul infrastructures focuses upon transporting content directly from the mobile network base station straight to subscribers. This approach is unique within the mobile industry and enables operators to significantly improve resource utilization, enhance user Quality of Experience (QoE) and drive greater profitability by monetization of content.

"Mobile networks are evolving at a phenomenal pace, one that demands mobile providers keep pushing the boundaries of what's possible," said Brian Protiva, chief executive officer of ADVA Optical Networking. "Based on the strong working relationship we've developed with Saguna Networks, our USD 1 million investment clearly highlights our belief in its technology and in our shared vision for mobile networks. People want mobile content wherever they are and whenever they need it. To achieve this, cell site caching and mobile optimization are critical. This not only guarantees a greater user experience but also enables mobile operators to harness their existing infrastructures and drive profitability. That's why we're combining our technologies to build a totally unique solution."

Saguna Network'sCODS works by loading the integrated cache servers in the cell site gateway or network interface device with popular content. Since this content is already on the radio access network, the system saves time, bandwidth and money by enabling mobile operators to disperse traffic efficiently and ensuring mobile users access the data from the base station cache servers instead of directing them to the main cache servers in the mobile core. This translates into better user QoE, saves operators from the need to expand capacity by reducing popular content delivery traffic and reduces costs by as much as 70%, while enabling monetization by managed content revenues.

"ADVA Optical Networking's investment in our company and our technology clearly indicates a shared vision for the development of mobile networks," commented Lior Fite, chief executive officer of Saguna Networks. "The fierce growth in mobile data demands new solutions, new ways of both addressing users' expectations and operators' needs to grow revenue. Our CODS technology brings cloud and over the top services directly into the mobile base station and this new partnership with ADVA Optical Networking creates a carrier-grade platform that delivers the right services exactly where they're needed - close to the mobile user."

With this investment, on a fully diluted basis, ADVA Optical Networking acquired a 10% stake in Saguna Networks, with the investment being accounted for by the equity method in ADVA Optical Networking's consolidated IFRS financial statements.

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About ADVA Optical Networking

ADVA Optical Networking is a global provider of intelligent telecommunications infrastructure solutions. With software-automated Optical+Ethernet transmission technology, the Company builds the foundation for high-speed, next-generation networks. The Company's FSP product family adds scalability and intelligence to customers' networks while removing complexity and cost. With a flexible and fast-moving organization, ADVA Optical Networking forges close partnerships with its customers to meet the growing demand for data, storage, voice and video services. Thanks to reliable performance for more than 15 years, the Company has become a trusted partner for more than 250 carriers and 10,000 enterprises across the globe. For more information, please visit us at www.advaoptical.com.

About Saguna Networks

Saguna Networks is an innovative provider of Radio Access Network (RAN) application acceleration and mobile content delivery on HSPA and LTE networks. Saguna Networks' Content Optimization Delivery System is a patented application acceleration and caching solution for mobile RAN. Saguna CODS™ is a proven solution to reduce data loads over the mobile backhaul by up to 70% and improve the Radio Interface efficiency by 20% to 30%. Saguna CODS substantially improve mobile network operator economics, while creating new level of service delivery and user experience in a transparent way. For more information, please visit www.saguna.net.

Published By:

ADVA Optical Networking SE, Martinsried/Munich and Meiningen, Germany

www.advaoptical.com

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: ADVA Optical Networking SE via Thomson Reuters ONE

[HUG#1658364]

For Press:
Gareth Spence
t +44 1904 699 358
public-relations(at)advaoptical.com

For Investors:
Wolfgang Guessgen
t +49 89 89 0665 940
investor-relations(at)advaoptical.com

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