Infinera Unveils FlexCoherent Technology at PTC

Software-Controlled Flexibility Optimizes Network Performance

SUNNYVALE, CA on 19 January 2011

Infinera (NASDAQ: INFN) will unveil FlexCoherent technology at this week’s PTC’11 telecom conference. FlexCoherent is a key enabling technology for next-generation optical transmission systems implementing coherent detection. FlexCoherent technology is designed to enable service providers to optimize network performance across a range of applications using a number of software-programmable advanced modulation formats.

Infinera Chief Strategy Officer Dr. Dave Welch will describe the new Infinera technology and its benefits for service providers in a PTC panel discussion on Tuesday titled Subsea Cable Smackdown.

FlexCoherent technology is being implemented across all of Infinera’s next-generation coherent transmission technologies at 40G, 100G and beyond. FlexCoherent modulation enables network operators to optimize transmission performance via a range of advanced modulation formats available on a single line card. This allows optimization of transmission performance across a number of critical parameters, including optical reach, fiber capacity, and resistance to optical impairments, while also enabling superior inter-operability of multiple data rates and formats on a single fiber. FlexCoherent technology will work with multiple grid spacing capabilities on Infinera’s ILS line system to enable maximum spectral efficiency and deliver important benefits in terms of network performance, flexibility, and economics.

Faced with ever-rising bandwidth demands, service providers are seeking to expand their fiber capacity and improve the economic performance of their networks. The move from 10G to 40G and then 100G transmission will deliver significant increases in fiber capacity. But traditional transponder-based system architectures create inflexibility, cost, and delays in network upgrades. FlexCoherent technology is the latest in a series of Infinera innovations that enhance the speed and flexibility of the optical network, and improve network economics, by freeing the network operator from the rigidly inflexible design of the transponder, offering instead a range of configurations that are controlled by advanced network software.

“We believe that a flexibility of both grid spacing and modulation formats is essential to achieve spectral efficiency on our fiber plant, particularly as we look at 100G and beyond,” said Verizon’s Stu Elby, Vice President of Technology.

Infinera has successfully demonstrated FlexCoherent technology on real-world subsea networks, operating with both 40G coherent and 100G coherent transmission. FlexCoherent technology supports a variety of advanced modulation formats, including PM-BPSK, PM-QPSK, and others in the future. These modulation formats use innovative techniques for packing more information into a wavelength of light, and each of these formats offers distinct benefits and performance characteristics. By integrating multiple modulation formats into a single line card which can then be selected simply by software, Infinera will make available the best possible performance with Infinera’s trademark simplicity and ease of operation. Advanced electronics, implemented in integrated circuits based on Infinera’s proprietary designs, make it possible to offer multiple modulation formats in a single Infinera line card.

“Infinera’s FlexCoherent technology will enable network operators to get the best of all worlds: the most appropriate optical performance in their network, from regional, long-haul and ultra-long-haul links, while maximizing simplicity and ease of use,” said Infinera Chief Strategy Officer Dr. Dave Welch. “Based on our next-generation 500G photonic integrated circuits, our 100G systems will be designed to offer the industry’s best solution for cost-effective, high-capacity next-generation networks with the advanced functionality of Infinera Digital Optical Networks.”

In September last year, Infinera announced its first successful trial of a 500G PIC delivering 100G per channel transmission over a live network extending 1,300 km. Infinera plans to deliver a system with 40G transmission this year, and a system implementing 100G transmission based on the 500G PIC next year.

At PTC, an important gathering for subsea network operators, Dr. Welch will focus on the benefits of Infinera’s next-generation solutions, including FlexCoherent technology, for subsea service providers. For subsea service providers, growing bandwidth demand is an opportunity, but also a challenge, because it can be difficult to achieve large increases in fiber capacity over subsea fiber plants which often are a decade old. In addition, upgrades on traditional subsea optical systems may take months. The Infinera DTN as SLTE has dramatically shortened deployment times since its introduction in 2009. The implementation of a next-generation Infinera system with 40G coherent transmission and FlexCoherent technology will further increase the service velocity and ease of operation of an Infinera subsea network.

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/.

Forward Looking Statements

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 FlexCoherent technology is designed to enable service providers to optimize network performance across a range of applications using a number of software-programmable advanced modulation formats; that FlexCoherent technology is being implemented across all of Infinera’s next-generation coherent transmission technologies at 40G, 100G and beyond; that FlexCoherent technology will work with multiple grid spacing capabilities on Infinera’s ILS line system to enable maximum spectral efficiency and deliver This innovative capability will offer important benefits in terms of network performance, flexibility, and economics; that FlexCoherent technology is the latest in a series of Infinera innovations that enhance the speed and flexibility of the optical network, and improve network economics, by freeing the network operator from the rigidly inflexible design of the transponder, offering instead a range of configurations that are controlled by advanced network software; that FlexCoherent technology will support other advanced modulation formats in the future; that the modulation formats use innovative techniques for packing more information into a wavelength of light, and each of these formats offers distinct benefits and performance characteristics; that Infinera will make available the best possible performance with Infinera’s trademark simplicity and ease of operation; that the technology will enable network operators to get the best of all worlds: the most appropriate optical performance in their network, from regional, long-haul and ultra-long-haul links, while maximizing simplicity and ease of use; that the next-generation 500G photonic integrated circuits, our 100G systems will be designed to offer the industry’s best solution for cost-effective, high-capacity next-generation networks with the advanced functionality of Infinera Digital Optical Networks; that Infinera plans to deliver a system with 40G transmission this year, and a system implementing 100G transmission based on the 500G PIC next year; that the Infinera DTN as SLTE has dramatically shortened deployment times since its introduction in 2009 and that the implementation of a next-generation Infinera system with 40G coherent transmission and FlexCoherent technology will further increase the service velocity and ease of operation of an Infinera subsea network. 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, and our ability to respond to rapid technological changes, and other risks that may impact any of the group’s business are set forth in their annual reports on Form 10-K filed with the SEC on March 1, 2010, 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.