Remec forms fiber optic and broadband wireless company

REMEC FORMS FIBER OPTIC AND BROADBAND WIRELESS COMPANY San Diego, CA-October 13, 2000- REMEC, Inc. (Nasdaq: REMC) announced today the formation of a new advanced technology company that will design and produce custom Monolithic Integrated Circuits ("MMIC's"), critical modules and integrated subassemblies for fiber optic and broadband wireless communications systems. REMEC has combined its Toronto based Nanowave operation with Ascentia, a highly sought after Dallas based team of twenty accomplished engineers, forming a company to develop and manufacture world class broadband MMIC designs, next generation highly linearized multi-carrier power amplifiers and millimeter wave transceiver assemblies, fiber optic devices and higher level integrated fiber optic assemblies. Attracting the highly sought after Ascentia team to join with Nanowave was based on the excellent fit with Nanowave's technology, markets, manufacturing skills and business infrastructure. The combination will accelerate the time-to-market for Ascentia's product designs and will give Nanowave significant leverage in its rapidly growing fiber optic device business. The new company will introduce its initial MMIC devices in the spring of 2001, featuring ultra broadband gallium arsenide ("GaAs") MMIC's for next generation OC-768 (40 G-bit/second) fiber optic systems. REMEC holds a 75% ownership in the new company. Within approximately two months, the company will seek additional capital from key strategic partners. Ron Ragland, REMEC CEO and Chairman stated, "This achievement is a unique solution to bring industry technologists who desire entrepreneurial leverage into a viable business structure that gives REMEC access to competitively differentiating advanced technology. The Nanowave-Ascentia skills are expected to have a dramatic impact upon our goal of leadership in the development and high volume manufacture of broadband wireless infrastructure equipment. In addition, the combination is expected to accelerate significantly our rapid growth in the fiber optics market." Dr. Justin Miller, previously President of REMEC Nanowave and CEO of the new company stated, "By adding Ascentia's world-class team of microwave engineers and their leading-edge MMIC designs to Nanowave's expertise in high volume manufacturing of microwave and millimeter wave products, we are creating a company that will be the supplier-of-choice for RF components and integrated subsystems to the electro-optics and broadband communication markets. Due to the explosive growth in electronic communications for all types of information transfer and electronic commerce, the worldwide demand for bandwidth is expected to increase at a projected annual rate of 140% through 2002. The primary constraint to bandwidth delivery is in the Customer Premise Network and, to a lesser extent, in the Access Network. The new company will focus on fiber optic transmitters and receivers for Dense Wavelength Division Multiplexing ("DWDM") terrestrial systems and broadband point-to-multipoint radio customer premise equipment ("CPE"), two segments which represent the greatest opportunity for growth in the manufacturing of telecommunications equipment." REMEC is a leading designer and manufacturer of high frequency subsystems used in the transmission of voice, video and data traffic of wireless communications networks and in defense electronics applications. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release may contain forward-looking statements that involve known and unknown risks and uncertainties, including certain economic conditions, competition, development factors, operating costs and other risks and uncertainties that are detailed from time to time in various filings with the Securities and Exchange Commission, that may cause the actual results to differ materially from the results implied by such forward-looking statements. ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/10/16/20001016BIT00320/bit0001.doc http://www.bit.se/bitonline/2000/10/16/20001016BIT00320/bit0002.pdf