CHARLTON, Mass., Oct. 31 /PRNewswire-FirstCall/ --
FiberCore, Inc. (Nasdaq: FBCE), a leading manufacturer and global supplier of
optical fiber and preform for the telecommunication and data communications
markets, today announced that it has closed on the financing package for the
second phase of capacity expansion at the Company's facilities in Jena,
Germany. This phase of the expansion represents an additional investment of
Euro 22.5 million, or approximately US$22 million.
The primary financing for Phase 2 is being provided by the DKB Bank,
Germany. The financing package includes approximately Euro 9.5 million in
grants from agencies of the German government, and Euro 7.5 million, in a
combination of long-term loans through DKB and leasing agreements. FiberCore
has contributed the balance of the funds, or approximately Euro 5.5 million.
The actual Phase 2 expansion work has been underway since early 2002 and is
approximately 80% complete at this time.
"Completion of this financing for FiberCore Jena is a major milestone for
the Company," commented Dr. Mohd A. Aslami, President and CEO. "We began
production in our new facility during the first quarter of 2002 and this phase
will complete the project as originally contemplated, although we have
deferred some of the spending until next year in line with expected demand.
This expansion focused on increasing and enhancing our multimode fiber
capability. It will double our capacity of multimode fiber to over
500,000 kilometers per year and allow for further expansion as needed.
"Our Jena facility currently supplies most of the Company's multimode
fiber worldwide and this expansion has been a key element of our strategy to
build market share and to prepare for expected customer volume increases. The
multimode segment of the optical fiber market has not experienced the dramatic
downturn that other segments of the market have experienced. While it has
been affected somewhat by reduced pricing, we have increased the volume of our
multimode shipments by 30% and revenues by 20% during the first half of this
year compared with 2001.
"Finally, I would like to point out that the Company has been internally
funding this expansion in anticipation of completing this financing and as a
result, we will see a positive impact to our cash flow in the coming months as
funds are received," concluded Dr. Aslami.
FiberCore, Inc. develops, manufactures and markets single-mode and
multimode optical fiber preforms and optical fiber for the telecommunications
and data communications markets. In addition to its standard multimode and
single-mode fiber, FiberCore also offers various grades of fiber for use in
laser-based systems up to 10 gigabits/sec, to help guarantee high bandwidths
and to suit the needs of Feeder Loop (also known as Metropolitan Area
Network), Fiber-to-the Curb, Fiber-to-the Home and Fiber-to-the Desk
applications. Manufacturing facilities are presently located in Jena, Germany
and Campinas, Brazil.
For more information about the company, its products, or shareholder
information please visit our Website at: http://www.FiberCoreUSA.com or contact us
at: Phone - 508-248-3900 or by FAX - 508-248-5588 or E-Mail:
sales@FiberCoreUSA.com ; investor_relations@FiberCoreUSA.com .
Except for the historical matters discussed above, the statements in this
press release are forward looking and are made pursuant to the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995. They are
based on the Company's current expectations and are subject to a number of
risks and uncertainties. Actual results may differ materially from those
projected as a result of certain general economic and business conditions;
loss of market share through competition; introduction of competing products
by other companies; changes in industry capacity; pressure on prices from
competition or from purchasers of the Company's products; availability of
qualified personnel; the delivery of an ability to commission new equipment as
scheduled; ability to obtain required financing; dependence on a limited
number of raw material suppliers; the loss or reduced creditworthiness of any
significant customers; and other factors detailed from time to time in the
Company's filings with the Securities and Exchange Commission.
SOURCE FiberCore, Inc.
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Related links:
http://www.FiberCoreUSA.com
CONTACT:
Dr. Mohd A. Aslami, President-CEO, or Robert
Lobban, CFO, both of FiberCore, Inc., +1-508-248-3900; or General
Info., Alison Ziegler of FRB Weber Shandwick, +1-212-445-8300
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