1. APPLIED OPTOELECTRONICS, INC. Nasdaq: AAOI March 2014

2. SAFE HARBOR STATEMENT This presentation contains forward-looking statements. These forward-looking statements involve risks and uncertainties, as well as assumptions and current expectations, which could cause the company’s actual results to differ materially from those anticipated in such forward-looking statements. These risks and uncertainties include but are not limited to: reduction in the size or quantity of customer orders; change in demand for the company’s products due to industry conditions or other factors; changes in manufacturing operations; volatility in manufacturing costs; delays in shipments of products; disruptions in the supply chain; change in the rate of design wins or the rate of customer acceptance of new products; the company’s reliance on a small number of customers for a substantial portion of its revenues; potential pricing pressure; a decline in demand for our customers products or their rate of deployment of their products; general conditions in the CATV, internet data center or FTTH markets; changes in the world economy (particularly in the United States, and China); the negative effects of seasonality; and other risks and uncertainties described more fully in the company’s registration statement and our annual report on Form 10-K as filed with the Securities and Exchange Commission, as referenced below. In some cases, you can identify forward-looking statements by terminology such as ‘‘may,’’ ‘‘will,’’ ‘‘should,’’ ‘‘expects,’’ ‘‘plans,’’ ‘‘anticipates,’’ ‘‘believes,’’ or ‘‘estimates” or by other similar expressions that convey uncertainty of future events or outcomes. You should not rely on forward- looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by law, we assume no obligation to update forward-looking statements for any reason after the date of this presentation to conform these statements to actual results or to changes in the company’s expectations." In this presentation we include Adjusted EBITDA and certain other non-GAAP measures that we believe are useful to investors in evaluating our operating performance. Adjusted EBITDA and other non-GAAP measures should not be considered as an alternative to gross profit, income (loss) from operations, net income (loss) or any other measure of financial performance calculated and presented in accordance with GAAP. Our Adjusted EBITDA and other non-GAAP measures may not be comparable to similarly titled measures of other organizations because other organizations may not calculate Adjusted EBITDA or such other non-GAAP measures in the same manner. You are encouraged to evaluate these adjustments and the reason we consider them appropriate. For a reconciliation of GAAP measures to our non-GAAP measures, please see the Appendix to this presentation. Please also see our registration statement and our annual report on Form 10-K as filed with the Securities and Exchange Commission for a description of our calculation of Adjusted EBITDA and certain other non-GAAP measures. 2 © Applied Optoelectronics, Inc. 2013-14

3. OFFERING OVERVIEW ISSUER Applied Optoelectronics, Inc. TICKER / EXCHANGE AAOI / NASDAQ OFFERING SIZE 2.7 million (47% primary) OVER-ALLOTMENT 15% (100% Primary) EXPECTED PRICING March 20 th, 2014 USE OF PROCEEDS Working capital and other general corporate purposes LOCK-UP 90 days for directors, officers and selling stockholders BOOKRUNNERS Raymond James, Piper Jaffray CO-MANAGERS Cowen and Company, Roth Capital Partners, Craig-Hallum 3

4. BUSINESS OVERVIEW DR. THOMPSON LIN FOUNDER, PRESIDENT & CEO 4

5. OPTICAL ACCESS PRODUCTS THAT ENABLE THE GIGABIT AGE 5

6. BANDWIDTH DEMAND DRIVES GROWTH FOR AOI DEVICES VIDEO CLOUD SOCIAL ANNUAL REVENUE ($M) + 33% CAGR 6 ($ in millions)

7. THE GIGABIT AGE 54% of North American broadband subscribers receive their internet through traditional CATV network 7 Optical ports expected to grow at a 56% CAGR from 2012 to 2017 Google deploying 1 Gbps internet service to Kansas City, Austin, and possibly 34 additional cities CABLE TV BROADBAND (CATV) INTERNET DATA CENTER FIBER-TO- THE-HOME (FTTH)

8. GEOGRAPHICALLY OPTIMIZED OPERATIONS LocationManufacturingR&D Houston, TX 229 Employees Wafer Fab Laser chips Optical Components FTTH Transceivers HeadquartersOther Facilities  Excellent manufacturing teams with many years of experience  Efficient supply chain  Vertical integration from laser chips to transceivers to equipment with cost advantages Manufacturing & Operations  Excellent laser technology  Proprietary Silicon Photonics Technology  Strong R&D teams in all 3 sites from lasers, transceivers to equipment  Customer NRE reimbursements Research & Development LocationManufacturingR&D Ningbo, China 644 Employees CATV Equipment Laser Packaging LocationManufacturingR&D Taipei, Taiwan 273 Employees Laser packaging Transceivers 8

9. THREE HIGH-GROWTH MARKETS TAM source: Ovum Research Limited, 2013. $2.2B OVERALL MARKET OPPORTUNITY $700M+ TAM $850M+ TAM CABLE TV BROADBAND INTERNET DATA CENTER FIBER-TO-THE- HOME Equipment design outsourcing International market expansion $600M+ TAM 9 Shift from copper to fiber Open server architecture Disruptive deployments 1Gbps to the home

10. CATV BROADBAND MARKET OPPORTUNITY GROWTH DRIVERS International market opportunities Upgrade cycle – DOCSIS 3.1 Continued outsourcing of design and production AOI’S ADVANTAGE Critical laser design and manufacturing Laser to Equipment Head-end to Node KEY CUSTOMERS 10

11. INTERNET DATA CENTER MARKET OPPORTUNITY KEY CUSTOMERS GROWTH DRIVERS Paradigm Shift - Fiber replacing copper (1Gbps to 10Gbps to 40Gbps) Web 2.0 operators adopting open architecture AOI’S ADVANTAGE Direct relationships with Web 2.0 operators Key integration with white-box server/switch manufacturers 11

12. 12 Source: Infonetics “10G/40G/100G Optical Transceivers, Biannual Worldwide Market Size and Forecasts, 2 nd edition, October, 2013. 56% CAGR TRANSCEIVER PORT GROWTH

13. GROWTH DRIVERS Disruptive market entrants Residential 1 Gbps service AOI’S ADVANTAGE Revolutionary WDM-PON transceivers Transceiver (OLT) for head-end Transceiver (ONU) tunable laser for home FIBER TO THE HOME MARKET OPPORTUNITY KEY CUSTOMERS WDM-PONG-PON CONFIDENTIAL 13

14. VERTICAL INTEGRATION DRIVES DIFFERENTIATION 14 CATVDATA CENTER FTTH SUBSTRATESPROCESSED WAFERCHIPS OPTICAL SUBASSEMBLY OPTICAL PACKAGED DEVICES MODULES TRANSCEIVERS SUBSYSTEM EQUIPMENT

15. BROAD PORTFOLIO OF PRODUCTS FTTHCATVDATA CENTER COOLED LASER DIODES LASER CHIPS Head-Office TRANSMITTER Outdoor NODES Outdoor ACCESS POINTS ACTIVE OPTICAL CABLES 10 GIGABIT SFP and SFP+ TRANSCEIVERS 15 40 GIGABIT QSFP + TRANSCEIVERS G-PON TRANSCEIVER WDM-PON OLT TRANSCEIVER WDM-PON ONU TRANSCEIVER

16. STRONG TRACK RECORD OF REVENUE GROWTH 20% (1%) 4% 56% 32% 37% 36% 27% 15% 25% 26% 26%YoY Growth 16 ANNUAL REVENUE (*) Annual CAGR from 2009 through 2013. 33% CAGR (*) ($ in millions)

17. REVENUE SEGMENTATION BY MARKET 17 ($ in millions)

18. REVENUE SEGMENTATION BY TOP TEN CUSTOMERS 18 ($ in millions) 2012 2013 CustomerRev% of Rev% of 10 CustomerRev% of Rev% of 10 1CATV$21.133%43%1CATV$17.222%28% 2CATV$7.111%14%2Data Center$14.318%24% 3CATV$4.16%8%3CATV$6.99%11% 4Data Center$3.76%7%4Data Center$4.86%8% 5CATV$3.56%7%5CATV$3.44%6% 6CATV$2.74%5%6CATV$3.24%5% 7FTTH$2.23%4%7CATV$3.14%5% 8CATV$2.13%4%8CATV$2.94%5% 9Data Center$1.63% 9CATV$2.33%4% 10CATV$1.32%3%10FTTH$2.23%4% Total$49.278%100%Total$60.377%100%

19. REVENUE SEGMENTATION BY GEOGRAPHY (% of Sales) 19 FY 2013FY 2012

20. SIGNIFICANT OPERATING LEVERAGE 20 For a reconciliation of GAAP to non-GAAP measures, please see appendix. ($ in millions)

21. NON-GAAP FINANCIAL RESULTS CY2011CY2012CY2013 LONG- TERM TARGET MODEL GROSS MARGIN 28.0%29.9%29.4%33-35% RESEARCH AND DEVELOPMENT 13.4%11.8%10.8%7-8% SALES AND MARKETING 4.9% 5.3%3-4% GENERAL AND ADMINISTRATIVE 16.0%12.4%12.3%6-8% OPERATING MARGIN (6.3%)0.7%1.1%17-20% NET MARGIN (10.5%)(0.8%)0.1%16-19% EBITDA MARGIN (1.3%)5.9%5.7%19-22% 21 For a reconciliation of GAAP to non-GAAP measures, please see appendix.

22. BALANCE SHEET HIGHLIGHTS ($ Millions) DECEMBER 31, 2012 DECEMBER 31, 2013 PRO FORMA POST-OFFERING CASH (1) $11$31$61 WORKING CAPITAL (2) $14$39$70 TOTAL ASSETS $66$111$142 TOTAL DEBT (3) $25$28 (1)Cash: Cash, cash equivalents, restricted cash and short term investments. (2)Working Capital: Total current assets less total current liabilities. (3)Total Debt: Short-term loans, notes payable and total long-term debt. (4)On an as adjusted basis to reflect the sale by us of 1,275,235 shares of common stock in this offering, at an assumed public offering price of $26.20 per share, after deducting underwriting discounts and commissions and estimated offering expenses. 22

23. Vertical integration provides differentiation and sustains margin INVESTMENT HIGHLIGHTS Focus on three high-growth optical access markets Leading optical components supplier in CATV market Extensive internally developed technology Revenue growth and operating leverage opportunity Tier 1 global customers 23

24. THANK YOU