CHARLTON, Mass, Dec. 11 /PRNewswire/ -- 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
received commitments to finance a pilot plant for the Company's Plasma Outside
Vapor Deposition (POVD) technology, for which it received a U.S. patent in
March 2001.
The POVD technology will be used initially in one of the manufacturing
steps of single-mode preform. Once implemented, it will significantly reduce
the manufacturing cost of single-mode fiber. Ultimately, the POVD technology
will be used to manufacture complete multi-mode preforms, providing a
significant competitive advantage through reduced production costs compared to
other existing processes.
The first phase of the POVD commercialization project will require a total
investment of Euro 10 million (US$9 million). Approximately 75% of the funds
will consist of bank loans and grants from agencies of the German Government,
with FiberCore investing the remainder of the funds in the form of equity.
"We are excited to move ahead with the commercialization of our POVD
process," commented Dr. Aslami, President and CEO. "Early results suggest a
significant cost advantage to FiberCore in the manufacture of our single-mode
fiber. Although FiberCore's current gross margin and operating margin are
among the highest in the industry, as the plant gets up and running the POVD
technology is expected to further improve our margins and could have an even
greater impact as we add more POVD capacity in the future. We expect to have
the financing completed early in 2002 and, having purchased a building in
Jena, Germany earlier in the year, expect to begin production toward the
latter part of 2002."
Dr. Aslami added, "Our POVD technology has the potential of making
FiberCore a world leader in multimode fiber."
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, +1-508-248-3900, or General,
Alison Ziegler, Analysts, Peter Seltzberg, both of FRB Weber
Shandwick, +1-212-445-8400
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