EXFO's Distributed PMD Solution Selected by Tier-1 EMEA Network Operator

    US$2.0 million deal to enable upgrade to high-bandwidth transmission

    QUEBEC CITY, April 7 /CNW Telbec/ - EXFO Electro-Optical Engineering Inc.
(NASDAQ:   EXFO, TSX: EXF) announced today that a Tier-1 network operator from
the Europe, Middle East and Africa (EMEA) region has selected EXFO's latest
ground-breaking test solution, FTB-5600 Distributed PMD Analyzer, to enable a
network upgrade to higher transmission rates.
    In a deal reaching roughly US$2.0 million, EXFO's newly released FTB-5600
Distributed PMD Analyzers will be used to quantify the level of potentially
debilitating polarization mode dispersion (PMD) on specific fiber sections of
the operator's core network. As a result, it will allow the customer to
identify and repair only the impacted sections of its network when upgrading
to 40 Gbit/s today and 100 Gbit/s in the future.
    All this work will be quickly accomplished using the unique FTB-5600
Distributed PMD Analyzer that measures PMD as a function of distance.
Consequently, the network operator will carry out targeted facelifts to its
fiber plant and meet tight deadlines for important upgrades to higher
transmission rates.
    The FTB-5600 Distributed PMD Analyzer is a module hosted inside the
recently launched FTB-500 platform, which allows EXFO customers to carry out a
wide range of tests - from optical link characterization to 40G
next-generation SONET/SDH testing.
    In contrast to the patent-pending test method behind the FTB-5600,
traditional PMD analyzers only provide a total end-to-end value for an entire
optical network. As such, network operators have been forced to deploy
dispersion compensators throughout their networks to alleviate high PMD levels
or else overhaul their entire systems.
    PMD is a physical phenomenon inherent to optical fiber and components
that causes a statistical spreading of light pulses as they travel along a
network. This degrades the quality of the transmission signal and, in turn,
limits the transmission rates carried by optical networks. PMD levels tend to
soar as transmission rates are increased to 40 Gbit/s and beyond.
    "As the market leader in optical testing, it's always gratifying to see a
newly released product being quickly adopted and meeting a pressing need for a
Tier-1 network operator," said Etienne Gagnon, EXFO's Vice-President of
Product Management and Marketing. "In this particular case, our single-end
distributed PMD analyzer will provide a Tier-1 operator with a much clearer
picture of PMD effects on all fiber sections of its network ? rather than
offer a blind end-to-end value ? and enable the cost-efficient upgrade to
higher transmission rates through targeted facelifts."

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning
of the U.S. Private Securities Litigation Reform Act of 1995, and we intend
that such forward-looking statements be subject to the safe harbors created
thereby. Forward-looking statements are statements other than historical
information or statements of current condition. Words such as may, will,
expect, believe, anticipate, intend, could, estimate, continue, or the
negative or comparable terminology are intended to identify forward-looking
statements. In addition, any statements that refer to expectations,
projections or other characterizations of future events and circumstances are
considered forward-looking statements. They are not guarantees of future
performance and involve risks and uncertainties. Actual results may differ
materially from those in forward-looking statements due to various factors
including consolidation in the global telecommunications test, measurement and
service assurance industry; capital spending levels in the telecommunications,
life sciences and high-precision assembly sectors; concentration of sales;
fluctuating exchange rates and our ability to execute in these uncertain
conditions; the effects of the additional actions we have taken in response to
such economic uncertainty (including our ability to quickly adapt cost
structures with anticipated levels of business, ability to manage inventory
levels with market demand); market acceptance of our new products and other
upcoming products; limited visibility with regards to customer orders and the
timing of such orders; our ability to successfully integrate our acquired and
to-be-acquired businesses; our ability to successfully expand international
operations; the retention of key technical and management personnel; and
future economic, competitive, financial and market conditions, including
slow-down or recession in the global economy. Assumptions relating to the
foregoing involve judgments and risks, all of which are difficult or
impossible to predict and many of which are beyond our control. Other risk
factors that may affect our future performance and operations are detailed in
our Annual Report, on Form 20-F, and our other filings with the U.S.
Securities and Exchange Commission and Canadian securities commissions. We
believe that the expectations reflected in the forward-looking statements are
reasonable based on information currently available to us, but we cannot
assure you that the expectations will prove to have been correct. Accordingly,
you should not place undue reliance on these forward-looking statements. These
statements speak only as of the date of this document. Unless required by law
or applicable regulations, we undertake no obligation to revise or update any
of them to reflect events or circumstances that occur after the date of this

    About EXFO

    EXFO is a leading provider of test and service assurance solutions for
network service providers and equipment manufacturers in the global
telecommunications industry. The Telecom Division offers a wide range of
innovative solutions extending across the full technology lifecycle ? from
design to technology deployment and onto service assurance ? and covering all
layers on a network infrastructure to enable triple-play services and
next-generation, converged IP networking. The Life Sciences and Industrial
Division offers solutions in medical device and opto-electronics assembly,
fluorescence microscopy and other life science sectors. For more information,
visit www.EXFO.com.

For further information:

For further information: Vance Oliver, Manager, Investor Relations,
(418) 683-0913, Ext. 3733, vance.oliver@exfo.com

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