Ad hoc: ADVA AG Optical Networking: ADVA OPTICAL NETWORKING REPORTS Q1 2009 FINANCIAL RESULTS WITH REVENUES AGAIN EXCEEDING GUIDANCE

ADVA AG Optical Networking / Quarterly report / Ad hoc: ADVA OPTICAL
NETWORKING REPORTS Q1 2009 FINANCIAL RESULTS WITH
REVENUES AGAIN EXCEEDING GUIDANCE

Ad hoc announcement according to §15 WpHG processed and transmitted
by Hugin. The issuer is solely responsible for the content of this
announcement.

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Q1 2009 revenues at EUR 56.9 million

Q1 2009 IFRS pro forma operating income of
EUR -0.1 million (-0.1% of revenues)

Q2 2009 revenues expected to range
between EUR 51 million and EUR 56 million with
IFRS pro forma operating income between -3% and +2% of revenues,

Norcross, Georgia, USA and Martinsried/Munich, Germany. May 5, 2009.
ADVA Optical Networking announced Q1 2009 financial results for the
quarter ended March 31, 2009, and prepared in accordance with
International Financial Reporting Standards (IFRS).

Q1 2009 IFRS FINANCIAL RESULTS
Revenues in Q1 2009 at EUR 56.9 million were higher than guidance of
between EUR 50 million and EUR 55 million, and up 5% vs. Q1 2008 at
EUR 54.0 million and marginally better than the EUR 56.8 million
reported in Q4 2008. IFRS pro forma operating income, excluding
stock-based compensation and amortization & impairment of goodwill &
acquisition-related intangible assets, amounted to EUR -0.1 million
or -0.1% of revenues in Q1 2009, in line with guidance of between -4%
and +1% of revenues. This compares to EUR -2.0 million or -3.8% of
revenues in Q1 2008 and EUR 0.1 million or 0.1% of revenues in
Q4 2008. Year-on-year, the pro forma operating income improvement is
largely due to higher revenues and gross margins. The improvement is
tempered by lower net capitalization of development expenses and by
higher selling and marketing expenses.

The IFRS operating loss in Q1 2009 was EUR 1.0 million, after EUR 3.8
million in Q1 2008. The key drivers for this improvement are the
above-mentioned increase of pro forma operating income as well as
reduced amortization of intangible assets of EUR 0.6 million after
EUR 1.2 million in Q1 2008.

The IFRS net loss in Q1 2009 was EUR 0.5 million, after EUR 4.4
million in Q1 2008. Beyond the factors impacting the operating loss,
Q1 2009 net foreign currency exchange gains of EUR 0.5 million after
losses of EUR 1.3 million in Q1 2008 contributed to the lower net
loss. Basic and diluted IFRS net earnings per share were EUR -0.01
each in Q1 2009 after EUR -0.10 each in Q1 2008.

CONFERENCE CALL AND WEBCAST
In conjunction with the release of its Q1 2009 IFRS financial results
on May 5, 2009, ADVA Optical Networking will host a conference call
for analysts and investors at 3:00 p.m. CEDT/9:00 a.m. EDT.
Participating in the call will be ADVA Optical Networking's chief
executive officer, Brian Protiva, and chief financial officer, Jaswir
Singh. Interested parties may dial in at +49 69 40359 611 or
+1 866 306 3455, and listen live via webcast on ADVA Optical
Networking's website, located on the 'financial results' page in the
investor relations section of ADVA Optical Networking's website at
www.advaoptical.com.

Q2 2009 OUTLOOK
In light of the ongoing economic crisis, ADVA Optical Networking
expects Q2 2009 revenues to range between EUR 51 million and EUR 56
million, and we anticipate pro forma operating income of between -3%
and +2% of revenues in Q2 2009. Further, ADVA Optical Networking
notes that it will continue to perform detailed quarterly reviews of
the expected business development in respect to all intangible
assets, including capitalized research and development expenses.
These reviews may result in non-cash impairment charges in Q2 2009
and beyond. The pro forma operating income guidance provided above
excludes any such potential impairment charges. ADVA Optical
Networking will host its annual shareholders' meeting on June 10,
2009, in Meiningen, Germany, and will publish its Q2 2009 financial
results on July 30, 2009.

THREE-MONTH IFRS CONSOLIDATED INCOME STATEMENT

(in thousands of EUR, except earnings per Q1 2009 Q1 2008
share)

Revenues 56,941 54,028
Pro forma cost of goods sold -32,378 -32,877
Pro forma gross profit 24,563 21,151
Pro forma selling and marketing expenses -9,159 -7,978
Pro forma general and administrative
expenses -5,902 -6,119
Pro forma research and development
expenses -10,860 -10,920
Income from capitalization of development
expenses,
net of amortization for capitalized
development projects 1,177 2,482
Restructuring expenses 0 -949
Other operating income (expenses), net 101 304
Pro forma operating income -80 -2,029
Amortization of intangible assets from
acquisitions -632 -1,192
Stock compensation expenses -296 -548
Operating income (loss) -1,008 -3,769
Interest income (expense), net -293 -166
Other income (expense), net 518 -1,321
Income (loss) before tax -783 -5,256
Income tax benefit (expense), net 235 879
Net income (loss) -548 -4,377

Earnings per share in EUR
Basic -0.01 -0.10
Diluted -0.01 -0.10

# # #

The economic projections and forward-looking statements contained in
this document relate to future facts. Such projections and
forward-looking statements are subject to risks which cannot be
foreseen and which are beyond the control of ADVA Optical Networking.
ADVA Optical Networking is therefore not in a position to make any
representation as to the accuracy of economic projections and
forward-looking statements or their impact on the financial situation
of ADVA Optical Networking or the market in the shares of ADVA
Optical Networking.

ADVA Optical Networking provides consolidated pro forma financial
results in this press release solely as supplemental financial
information to help investors and the financial community make
meaningful comparisons of ADVA Optical Networking's operating results
from one financial period to another. ADVA Optical Networking
believes that these pro forma consolidated financial results are
helpful because they exclude non-cash charges related to the stock
option programs and amortization and impairment of goodwill and
acquisition-related intangible assets, which are not reflective of
the company's operating results for the period presented. This pro
forma information is not prepared in accordance with IFRS and should
not be considered a substitute for historical information presented
in accordance with IFRS.

PUBLISHED BY:
ADVA AG Optical Networking, Martinsried/Munich and Meiningen, Germany
ADVA Optical Networking North America, Inc., Norcross, Georgia, USA
ADVA Optical Networking (Shenzhen) Ltd., Shenzhen, China
www.advaoptical.com

FOR PRESS:

Christine Keck
t +1 201 258 8293 (U.S.)

t +44 1904 699 358 (Europe)
t +86 755 8621 7400 (Asia)
public-relations@advaoptical.com

FOR INVESTORS:
Wolfgang Guessgen
t +1 201 258 8302 (U.S.)
t +49 89 89 0665 940 (Europe)
t +86 755 8621 7400 (Asia)
investor-relations@advaoptical.com

--- End of Message ---

ADVA AG Optical Networking
Campus Martinsried, Fraunhoferstr. 9a
Martinsried/Munich Germany

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