California Officials, Broadband Industry Leaders Express High Hopes for Federal Broadband Stimulus Program

Sunnyvale, CA on 22 February 2010

At an open meeting hosted last week by Infinera (Nasdaq: INFN) at its Sunnyvale headquarters, California state officials and leaders from the broadband industry expressed high hopes that the federal broadband stimulus program would have a significant impact on broadband availability and the industry in the months ahead.

Joe Camicia, chief of staff for California’s Chief Information Officer, and a member of Governor Schwarzenegger’s Broadband Task Force, praised the award of $7.5 million to LA CAN for an upgrade of 188 public computer centers in low income areas of Los Angeles. “Today, people are waiting in lines at public libraries to use computers so they can apply online for jobs,” Camicia said. “This is an example of how federal dollars will help individuals tremendously.” He added that California has won only two federal awards so far, and that he hopes to see California win some 10% of the total funding that will be disbursed. “We are eagerly awaiting more announcements,” he said.

According to California Public Utilities Commissioner Timothy Alan Simon, the CPUC is making up to $100 million of state funding available as matching funds for rural broadband projects by the public and private sectors, including projects by federal stimulus applicants. “I am glad that companies like Infinera are developing the innovative technology we need to make the best use of every government dollar dedicated to ensuring fast and affordable broadband access to Californians,” said Commissioner Simon.

California State Assembly member Paul Fong described Infinera as an important source of innovation in the technology industry, and praised the company for continuing to invest in the Silicon Valley area, especially in light of the recession and budget crisis hitting the state economy.

Latest Stimulus Grant Winner Praises Infinera Network

Tad Deriso, CEO of Mid-Atlantic Broadband Cooperative, an Infinera customer since 2007, said MBC’s success in deploying its Virginia network and delivering services to customers and communities throughout its region demonstrated that broadband networks can stimulate economic growth in depressed regions. “As a result of the availability of cost-effective, reliable broadband from MBC, a major technology company came to our region and opened a data center in an abandoned manufacturing building. So instead of an empty building, it is now producing tax revenue and jobs for southern Virginia.”

Deriso also praised Infinera’s Digital Optical Networks for their ease of deployment and management. “We have 10 full-time employees and manage a network that spans 2500 miles. That’s only possible because we have an Infinera optical network,” Deriso told the audience.

On Monday, Feb.8, the NTIA announced that MBC has been awarded a $16 million grant to build an extension to its existing network, which will bring fiber-based broadband to 121 schools in southern and southeastern Virginia.

Infinera Calls on Federal Government to Enable Competition, Innovation

Dr. Dave Welch, Infinera’s co-founder and chief marketing and strategy officer, called on the federal government to ensure that broadband policy encourages competition. He praised the proposed Broadband Deployment Conduit Act as an enabler of more competition and more cost-effective broadband networks. He also urged the federal government to pursue policies that support companies that compete through innovation like Infinera. “Innovations, like our photonic integration technology, are the only way to deliver long-term improvements in network capacity, reliability, and scalability to support the growing needs of the Internet,” he said.

According to industry analysts, for Q3 2009, by revenue, Infinera is the largest supplier of long haul optical networks in North America. Currently, Infinera has approximately 500 employees in Sunnyvale.

For more information on the Broadband Stimulus program, please visit our new website at www.infinera.com/broadband/

About Infinera

Infinera provides Digital Optical Networking systems to telecommunications carriers worldwide. Infinera’s systems are unique in their use of a breakthrough semiconductor technology: the photonic integrated circuit (PIC). Infinera’s systems and PIC technology are designed to provide customers with simpler and more flexible engineering and operations, faster time-to-service, and the ability to rapidly deliver differentiated services without reengineering their optical infrastructure. For more information, please visit http://www.infinera.com/.

This press release contains certain forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties. These statements are based on information available to Infinera as of the date hereof; and actual results could differ materially from those stated or implied, due to risks and uncertainties. Forward-looking statements include statements regarding Infinera’s expectations, beliefs, intentions or strategies regarding the future, including that innovations, such as photonic integration technology, are the only way to deliver long-term improvements in network capacity, reliability, and scalability to support the growing needs of the Internet. Such forward-looking statements can be identified by forward-looking words such as “anticipated,” “believed,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “will,” and “would” or similar words. The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include aggressive business tactics by our competitors, our dependence on a single product, our ability to protect our intellectual property, claims by others that we infringe their intellectual property, our manufacturing process is very complex, product performance problems we may encounter, our dependence on sole or limited source suppliers, our ability to respond to rapid technological changes, our ability to maintain effective internal controls, the ability of our contract manufacturers to perform as we expect, a new technology being developed that replaces the PIC as the dominant technology in optical networks, general political, economic and market conditions and events, including war, conflict or acts of terrorism; and other risks that may impact Infinera’s business are set forth in our annual report Form 10-K, which was filed with the SEC on February 17, 2009, as well as subsequent reports filed with or furnished to the Securities and Exchange Commission. These statements are based on information available to us as of the date hereof and we disclaim any obligation to update the forward-looking statements included in this press release, whether as a result of new information, future events or otherwise.