AFOP Alliance Fiber Optic Products, Inc.

Alliance Fiber Optic Products, Inc. (NASDAQ:AFOP), an innovative supplier of fiber optic components, subsystems, and integrated modules for the optical network equipment market, today announces two strengthening events. Planer Lightwave Circuit (PLC) Splitters Complete Third Party Qualification And AFOP Accepts Auction Rate Securities (ARS) offer from UBS financial institute AFOP's PLC Splitters (1x4 and 1x8) successfully completed Independent Test Laboratory qualification to the rigorous FOC GR-1209 and GR- 1221 requirements. These highly stable components perform superbly across temperature and wavelength providing low insertion loss, low input polarization sensitivity, excellent uniformity, and low return loss in 4-port and 8-port configurations. AFOP16 and 32 port PLCs which use the same technology also demonstrate superior reliability and our OEM-friendly packaging provides the flexibility to meet the broadest design requirements for FTTH applications. They are all available in AFOP�s new QuickPath� modular rack cassette packing line for quick installation and ease of use. With respect to AFOP�s Balance Sheet, on November 11, 2008 AFOP accepted an offer from UBS to repurchase its auction rate securities (�ARS�), at par value, from the investment bank that sold and continue to hold its ARS. The Company believes its ARS are eligible to participate in the offer and expects to sell them at par value in exchange for cash during the period of June 30, 2010, through July 2, 2012 or sooner per the offer. The total par value of the Company's ARS is $16.3 million. The investment bank who has made the repurchase offer, UBS, has represented they have the financial resources to perform their obligations under the offers. However, there can be no guarantee that the investment bank can maintain the financial resources to satisfy their obligations under the repurchase offer. "We believe the investment in third party qualifications of our Connectivity and Passive products is a sound investment for AFOP�s future. As additional carriers or CATV/ Broadband providers begin FTTX deployments, AFOP is well positioned to gain increasing market share," said Peter Chang, President and CEO of AFOP. �With this supportive offer from UBS regarding these highly rated securities, we are further confident in expanding our business, in current economic environment, with our strong balance sheet,� Chang added. About AFOP Founded in 1995, Alliance Fiber Optic Products, Inc. designs, manufactures and markets a broad range of high performance fiber optic components and integrated modules. AFOP's products are used by leading and emerging communications equipment manufacturers to deliver optical networking systems to the long-haul, enterprise, metropolitan and last mile access segments of the communications network. AFOP offers a broad product line of passive optical components, including interconnect systems, couplers and splitters, thin film DWDM components and modules, fixed and variable optical attenuators. AFOP is headquartered in Sunnyvale, California, with manufacturing and product development capabilities in the United States, Taiwan and China. AFOP's website is located at www.afop.com. Except for the historical information contained herein, the matters set forth in this press release, including statements as to future market demand, future sales growth and profitability, are forward looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including, but not limited to, general economic conditions and trends, the impact of competitive products and pricing, timely introduction of new technologies, timely design acceptance by our customers, the acceptance of new products and technologies by our customers, order trends and customer demand, the timing of customer orders, loss of key customers, ability to ramp new products into volume production, industry-wide shifts in supply and demand for optical components and modules, industry overcapacity, failure of cost control initiatives, financial stability in foreign markets, and other risks detailed from time to time in our SEC reports, including AFOP's quarterly report on Form 10-Q for the quarter ended September 30, 2008. These forward-looking statements speak only as of the date hereof. AFOP disclaims any intention or obligation to update or revise any forward-looking statements.