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To: Johnny Canuck who wrote (38817)	1/13/2003 2:35:11 AM
From: Johnny Canuck	Read Replies (2) \| Respond to of 69345

Press Release Source: Tellium, Inc. Tellium Announces Business Restructuring Thursday January 9, 1:03 pm ET OCEANPORT, N.J.--(BUSINESS WIRE)--Jan. 9, 2003--Tellium, Inc. (Nasdaq:TELM - News), today announced a business restructuring that will result in a workforce reduction of approximately 130 employees in the first quarter. ADVERTISEMENT The company has elected to take the necessary steps to better align ongoing operating costs with current market conditions. The company will record a non-recurring restructuring charge in the first quarter of approximately four to five million dollars, most of which is employee related expenses and will be paid in the first quarter. The company expects the workforce reduction will reduce quarterly operating costs by approximately four million dollars beginning in the second quarter. "While we continue to believe the worst quarters are behind us from a revenue perspective, we believe it is critical to continuously evaluate and realign our costs. We are committed to revenue growth and we remain focused on accelerating our path to profitability," said Harry Carr, chairman of the board and chief executive officer of Tellium. "We expect these difficult decisions will enhance our stability as a business, reduce our cash burn significantly, and allow us to remain a technology leader in optical switching." The company also announced it has scheduled a conference call for January 29, 2003 to discuss fourth quarter results and will provide detailed information about the call later this month. About Tellium Tellium delivers high-speed, high-capacity, intelligent core optical solutions that empower service providers around the world to create, run, control and optimize their networks. First in the world to provide in-service, intelligent optical switches, Tellium's Aurora Optical Switch(TM) family and the StarNet Software Suite(TM) together offer service providers a simple and cost-effective migration path to next-generation public networks. For more information, visit Tellium's web site at www.tellium.com Certain matters discussed in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based on current expectations, forecasts and assumptions that involve risks and uncertainties. Forward-looking statements in this release include, but are not limited to: the expectation that the company's quarterly operating costs will be reduced by approximately four million dollars beginning in the second quarter as a result of the workforce reduction; the expectation that the workforce reduction will enhance our stability as a business; reduce our cash burn significantly; allow us to remain a technology leader in optical switching; Tellium's ability to deliver better, faster and more cost-effective products to the marketplace; and all other statements that are not purely historical. These forward-looking statements involve risks and uncertainties which could cause actual results to differ materially including, without limitation, the risk that (1) our limited operating history makes forecasting our future revenues and operating results difficult, which impairs our ability to manage our business; (2) we generate substantially all of our revenue from a limited number of customers; (3) we will not attract new customers; (4) customers fail to place expected orders for our products; (5) we are unable to reach commercially-acceptable contract terms with new customers; (6) our revenues and operating results vary significantly from quarter to quarter, causing the price of our common stock to decline; (7) the selling prices of our products decline; (8) general economic conditions or conditions within our industry continue to worsen or improve more slowly than we expect; (9) we experience volatility in our stock price; (10) errors or defects in our products are found only after full deployment in a customer's network; (11) our products are unable to operate within customer networks; (12) our products fail to meet contract specifications or industry standards that may emerge; (13) the optical switching market fails to develop as we expect; (14) we are unable to rapidly develop new and enhanced products; (15) we are unable to increase market awareness and sales of our products; (16) we are unable to comply with government regulations; (17) we fail to predict our manufacturing and component requirements accurately; (18) some of the optical components used in our products may be difficult to obtain; (19) any disruption in our manufacturing relationships may cause us to fail to meet our customers' demands; (20) we are unable to obtain key components on a timely basis; (21) we are unable to protect from third-party challenges the development and maintenance of the proprietary aspects of optical switching products and technology we design; (22) necessary licenses of third-party technology are not available to us or are very expensive; and (23) industry conditions and our workforce reductions could impact product development and existing customer contracts. These and other factors and other risks and uncertainties are discussed in the company's filings with the Securities and Exchange Commission, particularly the "Risk Factors" section of our annual and quarterly reports. The forward-looking statements in this press release are only made as of this date, and the company assumes no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise. Tellium, the Tellium logo, "Smarter, Faster Optical Networks," Aurora, StarNet, and others are trademarks or registered trademarks of Tellium, Inc. in the United States and/or other countries. Other marks are the properties of their respective owners. -------------------------------------------------------------------------------- Contact: Investors Jenniffer Collins, 732/483-3112 Email: jcollins@tellium.com or Media Mike Deshaies, 732/923-4160 Email: mdeshaies@tellium.com