ADVA AG Optical Networking 2000 Annual Shareholders’ Meeting Brian L. Protiva, Chief Strategy Officer Andreas G. Rutsch, Chief Financial Officer May 24, 2000 Munich, Germany

2 Highlights Leading global provider of optical networking solutions Pioneer in the DWDM market Dynamic growth and acquisition strategy Clearly differentiated from competitors technology/products distribution management

3 Optical networking market Challenge exploding amounts of data traffic fiber exhaustion and insufficient transmission capacity new telecommunications networks customer requirement for wavelength management/scalable network architectures Solution Dense Wavelength Division Multiplexing (DWDM) and intelligent optical networking solutions “Virtual Fiber” to maximize bandwidth of installed fiber

4 Backbone Metro ring Access ring OADM CPE O-BLSR 2/4 Fiber Ring O-UPSR Central Office Long Haul (WAN) Enterprise (SAN/LAN) Metro (MAN) Metro Access 2000 Market Size: $200 Million USD Market Growth: % CAGR Market Size: $150 Million USD Market Growth: % CAGR Market Size: $3.5 Billion USD Market Growth: 21% CAGR Note: market size and growth estimates based on 1999 and 2000 studies by Pioneer Consulting, RHK and Ovum Optical networking market

5 Driving factors disaster recovery mergers and cooperation of companies data center services distributed offices and outsourced IT Convergence of enterprise and carrier networks delivery of traditional enterprise services by carriers significant revenue opportunities for carriers and equipment providers

6 Product portfolio Metro ring Access ring Carrier Networks (CO) FSP-I FSP 3000 Enterprise Networks (CPE) FSP-II DiskLink Cellware product family Carrier Networks Enterprise Networks

7 Product strategy Optical IAD Metro Access Core Optical Cross- Connect Networking Software Element Management System SANVideo seamless network management complementary technologies - independent platforms

8 Distribution Strategy Blue chip OEM partners and strategic distributors OEMs: Cisco, Alcatel VARs: Inrange, StorageTek, Controlware End-user customers more than 200 enterprises 14 telecommunication carriers Carrier competence center (C3) team focuses expertise of ADVA’s sales & product marketing teams drives product strategy Strong global presence 7 sales offices worldwide

9 Strategy Superior organic growth first-to-market with cost-efficient solutions introduction of FSP 3000 expansion of blue-chip VAR & OEM channels Cisco OEM agreement winning of 3-year Bell Atlantic contract increasing global presence opening of Tokyo office

10 Strategy Aggressive acquisition-oriented growth Storage Area Networks Ltd. (UK) storage area network router solutions purchase price: $83 million USD Cellware GmbH (Berlin) integrated access devices, video solutions purchase price: 23.4 million Euro strategic investment in OptXCon Inc. optical cross connects

11 Q financial highlights *thousands of Euro, except earnings per share and number of employees *unaudited, according to U.S. GAAP

12 Q financial highlights Sales (thousands of Euro, U.S. GAAP) Operating income (thousands of Euro, U.S. GAAP) Net profit (thousands of Euro, U.S. GAAP)

financial highlights *thousands of Euro, except earnings per share and number of employees *fully audited according to U.S. GAAP

14 Sales per product

15 Sales per geographic region

financial highlights Operating income (thousands of Euro, U.S. GAAP) Net profit (thousands of Euro, U.S. GAAP) Earnings per share (EPS) (Euro, U.S. GAAP)

17 ADVA employees worldwide December 31, total 132 R&D Procurement and production Quality management Sales, service, marketing, product marketing Management, administration, finance, IT Apprentices Human resources ADVA employees worldwide December 31, total 75 R&D Procurement and production Quality management Sales, service, marketing, product marketing Management, administration, finance, IT Apprentices

18 Human resources Strategic change in leadership Brian L. Protiva Chief Strategy Officer Stephan Offermanns Chief Operating Officer Brian McCann Chief Sales & Marketing Officer Andreas G. Rutsch Chief Financial Officer sales marketing product marketing production logistics quality IT procurement strategy research & development corporate finance/M&A controlling/treasury investor relations personnel legal affairs

19 Stock performance Euro

annual shareholders’ meeting Increase in capital stock from corporate funds increase in common stock from EUR 5 million to EUR 30 million stock split in the ratio of 1:5 Creation of additional approved capital increase in equity capital by up to EUR 14 million up to EUR 3 million for cash contributions up to EUR 10 million for assets Stock option program 2000