Milpitas, California, February 5, 2008 – JDSU today reported results for its second quarter ended December 29, 2007.

Net revenue for the second quarter of fiscal 2008 was $399.2 million and the net income was $21.2 million, or $0.09 per share.  This compares to net revenue of $356.7 million and a net loss of $(6.9) million or $(0.03) per share in the first quarter of fiscal 2008. 

On a non-GAAP basis, net revenue for the second fiscal 2008 quarter was $399.2 million and net income was $50.2 million, or $0.22 per share.  This compares to non-GAAP net revenue of $357.2 million and net income of $18.0 million, or $0.08 per share in the first quarter of fiscal 2008. 

On an adjusted EBITDA basis (adjusted Earnings Before Interest, Taxes, Depreciation and Amortization) the Company reported $61.8 million for the second quarter of fiscal 2008, which compares to $23.7 million for the first quarter of 2008.

“In Q2 we saw across the board financial metric improvement as we achieved our near-term operating model goals. Also, for the fourth consecutive quarter the company was free cash flow positive,” 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 Second Quarter Ended December 29, 2007

• Second quarter non-GAAP revenue of $399.2 million grew 11.8% compared with the previous quarter and grew 9.0% from the second quarter of fiscal 2007.
• Company non-GAAP gross margins of 46.3% compared with 41.3% in fiscal Q1 2008 and 40.6% in fiscal Q2 2007.
• Communications Test and Measurement non-GAAP revenue of $197.5 million increased 14.0% from the fiscal 2008 first quarter’s level of $173.3 million, and represented 49% of total fiscal Q2 non-GAAP net revenue.
• Second quarter Optical Communications non-GAAP net revenue of $129.7 million grew 11.8% from the previous quarter’s non-GAAP net revenue of $116.0 million.  Revenue from this segment represented 33% of total fiscal Q2 non-GAAP net revenue. 
• Advanced Optical Technologies segment net revenue was $49.8 million, or 12% of total fiscal Q2 non-GAAP net revenue.  Relative to fiscal 2008 first quarter revenue, AOT grew 3.8%. 
• Our Commercial Lasers business reported net revenue of $22.2 million, up 11.6% from the previous quarter.  This business represented 6% of total fiscal Q2 non-GAAP net revenue.
• Americas’ customers represented 53% of total non-GAAP net revenue. European and Asia-Pacific customers represented 28% and 19% of total non-GAAP net revenue, respectively.
• The Company held $1,102.8 million in cash, cash equivalents, short-term investments and restricted cash at the end of the second quarter.  The Company was free cash flow positive for the fourth consecutive quarter, generating more than $40 million in free cash flow in the quarter.

Business Outlook

For the third quarter of fiscal 2008, ending March 29, 2008, the Company expects non-GAAP net revenue to be in the range of $380 to $402 million and non-GAAP operating margin to be in the range of 4-7%.

Conference Call

The Company will discuss these results and other related matters at 2:00 p.m. Pacific Time on February 5, 2008 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 current general economic uncertainty is further limiting our visibility in the near-term and may have a material adverse impact on our business.

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