CHARLTON, Mass., Dec. 6 /PRNewswire/ -- FiberCore, Inc. (Nasdaq: FBCE), a
leading manufacturer and global supplier of optical fiber and preform for the
telecommunication and data communications markets, today reported that a major
Japanese material supplier to Xtal FiberCore Brasil has recently commenced an
arbitration proceeding in Japan against Xtal and the Company alleging breach
of a multi-year supply agreement.
The proceeding is based on the reduced volume of raw materials taken by
Xtal from the supplier during the third and fourth quarter of this year. The
reduced volumes were a result of the market slowdown in Brazil and the breach
of contract situation with a large South American customer previously
disclosed and resolved. The Company believes it has substantial defenses to
this claim and plans to aggressively defend its position in the arbitration.
In the meantime, discussions between the parties to resolve the matter are
presently underway. The Company is optimistic that a resolution will be
reached between the parties prior to any arbitration hearings, which are
expected to commence in early 2002. The Company has addressed and resolved
this issue with other suppliers to Xtal and expects to resolve this situation
as well.
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, or Analyst Info., Peter Seltzberg, both of
FRB Weber Shandwick, +1-212-445-8400
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