Milpitas, California, October 31, 2007 – JDSU today reported results for its first quarter ended September 29, 2007.

Net revenue for the first quarter of 2008 was $356.7 million and the net loss was $6.9 million, or $(0.03) per share.  This compares to net revenue of $318.1 million and a net loss of $17.4 million or $(0.08) per share in the first quarter of 2007. 

On a non-GAAP basis, net revenue for the first quarter was $357.2 million and the net income was $18.0 million, or $0.08 per share.  This compares to non-GAAP net revenue of $318.2 million and net income of $6.8 million, or $0.03 per share in the first quarter 2007. 

On an adjusted EBITDA basis (adjusted Earnings Before Interest, Taxes, Depreciation and Amortization) the Company reported $23.7 million for the first quarter, which compares to $9.6 million for the first quarter 2007.

“In Q1 all key financial metrics improved sequentially as well as year-over-year. For the third consecutive quarter, the company was free cash flow positive at more than $27 million,” said Kevin Kennedy, JDSU’s Chief Executive Officer.  “Looking forward, JDSU remains focused on innovation and continuous improvement of our business model.”

Financial Overview – Fiscal 2008 First Quarter Ended September 29, 2007

• First quarter non-GAAP revenue of $357.2 million grew 1.8% compared with the previous quarter and grew 12% from the first quarter of fiscal 2007.
• First quarter Optical Communications non-GAAP net revenue of $121.3 million grew 7.6% from the previous quarter’s non-GAAP net revenue of $112.7 million.  Revenue from this segment represented 34% of total fiscal Q1 non-GAAP net revenue. 
• Communications Test and Measurement non-GAAP revenue of $168.0 million declined 1.9% from the fiscal 2007 fourth quarter’s level of $171.3 million, and represented 47% of total fiscal Q1 non-GAAP net revenue.
• Advanced Optical Technologies segment net revenue was $48.0 million, or 13% of total fiscal Q1 non-GAAP net revenue.  Fiscal 2007 fourth quarter revenue from AOT was $44.7 million. 
• Our Commercial Lasers business reported net revenue of $19.9 million, down 10% from the previous quarter.  This business represented 6% of total fiscal Q1 non-GAAP net revenue.
• Americas’ customers represented 54% of total non-GAAP net revenue. European and Asia-Pacific customers represented 28% and 18% of total non-GAAP net revenue, respectively.
• The Company held $1,127.4 million in cash, cash equivalents, short-term investments and restricted cash at the end of the first quarter.  The Company was free cash flow positive for the third consecutive quarter, generating more than $27 million in free cash flow in the quarter.

Business Outlook
For the second quarter of fiscal 2008, ending December 29, 2007, the Company expects non-GAAP net revenue to be in the range of $372 to $394 million.

Conference Call
The Company will discuss these results and other related matters at 2:00 p.m. Pacific Time on October 31, 2007 in a live webcast, which will also be archived for replay on the Company's website at www.jdsu.com/investors.  This press release is being furnished as a Current Report on Form 8-K with the Securities and Exchange Commission, and will be available at http://www.sec.gov/.

About JDSU
JDSU (NASDAQ: JDSU; and TSX: JDU) enables broadband and optical innovation in the communications, commercial and consumer markets. JDSU is a leading provider of communications test and measurement solutions and optical products for telecommunications service providers, cable operators, and network equipment manufacturers.  JDSU is also a leading provider of innovative optical solutions for medical/environmental instrumentation, semiconductor processing, display, brand authentication, aerospace and defense, and decorative applications.  More information is available at http://www.jdsu.com/.
 
Forward-Looking Statements
This press release contains, and the discussions in our subsequent conference call will contain, 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 statements include: (i) any anticipation or guidance as to future financial performance, including future revenue, gross margin, operating expense, operating margin, EBITDA, cash flow and other financial metrics; and (ii) the Company's beliefs regarding the purpose, usefulness and efficacy of non-GAAP results and the measures and items the Company includes in the same, as well as any benefits to investors the Company believes its non-GAAP measures provide.  These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected.  In particular, the Company's ability to predict future financial performance continues to be difficult due to, among other things:  (a) continuing general limited visibility across many of our product lines; (b) the ongoing potential for significant quarter-over-quarter product mix fluctuations, which can materially impact profitability due to the broad gross margin range across our portfolio; (c) continuing consolidation activities affecting our customer base, which limits demand visibility in the short term, and  could reduce our business potential in the long term; (d) average selling prices continue to decline across our traditional Optical Communications and our Advanced Optical Technologies and Commercial Lasers businesses; (e) we and many of our Optical Communications suppliers continue to experience execution and delivery challenges which limit our revenue and impair our profitability; (f) our Communications Test and Measurement business is notable for seasonality and a significant level of in-quarter book-and-ship business, further limiting our forecasting abilities; (g) we are currently engaged in various product and manufacturing transfers, site consolidations and product discontinuances, which have caused and may continue to cause execution disruptions, customer satisfaction issues and quality and delivery problems; (h) Optical Communications customer supply chain and inventory rationalization initiatives are limiting our demand visibility; and (i) the securities class actions referenced in the Company's Annual Report on Form 10-K for the year ended June 30, 2007 filed with the Securities and Exchange Commission claim damages that exceed the total current assets of the Company and thus an unfavorable outcome or settlement of one or more of these lawsuits could have a substantial material adverse effect on our financial condition, liquidity and results of operations.

For more information on these and other risks affecting the Company's business, please refer to the “Risk Factors” section included in the Company's Annual Report on Form 10-K for the year ended June 30, 2007 filed with the Securities and Exchange Commission, as well as in other filings on Forms 10-Q and 10-K. The forward-looking statements contained in this news release are made as of the date hereof and the Company does not assume any obligation to update the reasons why actual results could differ materially from those projected in the forward-looking statements.

Contact Information
Investors:  Michelle Levine, 408-546-4421 or michelle.levine@jdsu.com
Press:  Kathleen Greene, 408-546-5852 or kathleen.greene@jdsu.com

The following financial tables are presented in accordance with GAAP, unless otherwise specified.

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