CoreOptics and EXFO Demonstrate 40G Error-Free Traffic on CP-QPSK Transponder
with Coherent Detection

Successful data transmission testing will be demonstrated during OFC/NFOEC 2010, underscoring an advanced 40G technology that provides customers with the essential building blocks to meet today's high-speed demands

QUEBEC CITY, March 18 /CNW Telbec/ - CoreOptics Inc. and EXFO Inc. (NASDAQ: EXFO, TSX: EXF) announced today their plans for a joint demonstration of interworking the world's first 40G coherent transponder module from CoreOptics and EXFO's FTB-8140 Transport Blazer test module at OFC/NFOEC 2010. This live demonstration achieves 40G error-free traffic on a next-generation multihaul DWDM line card, using EXFO's 40G Transport Blazer client-side test module with CoreOptics' 40G CP-QPSK line-side transponder, which includes advanced dual polarization, DQPSK modulation and coherent detection with digital signal processing (DSP) technologies.

The live demo will comprise a test setup of EXFO's FTB-8140 Transport Blazer (40G/43G) generating an OC-768/STM-256 signal with PRBS (pseudo-random bit stream) test patterns into a next-generation multihaul DWDM platform's line card with its integrated client 40G VSR module, FEC ASIC and line-side 40G CP-QPSK DWDM module. The transmitted output from the CoreOptics module will connect to a line system with EDFAs and 2000 km of singlemode fiber, back to the receiver end.

EXFO's FTB-8140 module offers 40G SONET/SDH and 43G OTN line rates as part of the Transport Blazer family of modules, which also includes the FTB-8130NGE 10G multiservice module. Housed in the FTB-500 portable platform, the FTB-8140 and FTB-8130NGE set EXFO ahead of its competitors in the market. This combined 40G commissioning and service turn-up solution offers a wide range of testing rates, applications and technologies, meeting today's 40G ROADM-based, converged network requirements. Supported technologies include DSn/PDH, SONET/SDH, OTN (optical transport network) with FEC testing as per ITU-T G.709, Ethernet and Fibre Channel.

The CoreOptics 40 Gbit/s Coherent-Polarized QPSK (CP-QPSK) DWDM transponder CO40TDL40 supports dual polarization, DQPSK modulation and coherent detection with DSP technologies. Coherent detection with polarization-multiplexed DQPSK technology improves receiver sensitivity and compensates for optical dispersion, resulting in superior cost savings and optical performance when migrating 40G and 100G networks.

"We are excited to work with CoreOptics, bringing together our respective technological innovations to enable faster deployment of 40G next-generation networks," said Etienne Gagnon, EXFO's Vice-President of Product Management and Marketing. "This collaboration will provide network equipment manufacturers, carriers and service providers with the essential building blocks to meet today's bandwidth demand."

"CoreOptics is pleased to partner with EXFO to showcase the world's first 40G coherent transponder demonstration," said Saeid Aramideh, CoreOptics' Senior Vice President of Marketing and Sales. "This is a major proof point for the industry verifying coherent detection technology as the only viable solution meeting the cost/performance requirements of carriers."

About EXFO

EXFO is a leading provider of next-generation test and service assurance solutions for wireless and wireline network operators and equipment manufacturers in the global telecommunications industry. The Telecom Division, which accounts for more than 90% of the company's revenues, offers core-to-edge solutions that assess the performance and reliability of converged, IP fixed and mobile networks. Key technologies supported include 3G, 4G/LTE, IMS, Ethernet, OTN, xDSL, and various optical technologies accounting for an estimated 33% of the portable fiber-optic test market. The Life Sciences and Industrial Division provides solutions in medical device and opto-electronics assembly, fluorescence microscopy and other life science sectors. EXFO has a staff of approximately 1,600 people in 25 countries, supporting more than 2000 customers worldwide. For more information, visit www.EXFO.com.

About CoreOptics

CoreOptics, with operations in Nuremberg/Stuttgart, Germany, and San Jose, California, develops and manufactures subsystems for ultra-high-speed optical networking applications in the telecommunications and information technology industries. CoreOptics' current portfolio includes advanced 10 Gbit/s and 40 Gbit/s transponders for metropolitan, regional and long-haul optical systems using DWDM, OTN, SONET/SDH, ATM and IP protocols.

The company was founded in January 2001 and has received financing from leading venture capital firms T-com, GIMV, Crescendo Ventures, TVM, High Tech Private Equity, Atila Ventures, Quest for Growth and others. The team includes over 120 highly skilled engineers with extensive experience in RF and digital ASIC design as well as optical systems, applications and network architecture. Additional information about CoreOptics can be found at www.CoreOptics.com.

SOURCE EXFO Inc.

For further information: For further information: EXFO: Maryse Brodeur, Media Planner, (418) 683-0913, Ext. 3429, maryse.brodeur@EXFO.com; Vance Oliver, Manager, Investor Relations, (418) 683-0913, Ext. 3733, vance.oliver@EXFO.com; CoreOptics: Saeid Aramideh, Senior Vice President of Marketing and Sales, (443) 794 5411, saeid@coreoptics.com

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EXFO Inc.

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