STLW Stratos Intl (MM)

Stratos International Updates Second Quarter Guidance CHICAGO, Nov. 5 /PRNewswire-FirstCall/ -- Stratos International, Inc. (NASDAQ:STLW), a leading provider of optoelectronic, fiber optic, and radio frequency (RF) and microwave subsystems and components, today announced that it has revised its revenue guidance for its second quarter ended October 31, 2004. The Company currently expects its second quarter revenue to be approximately $18 million. Previous guidance for the Company's fiscal year 2005 second quarter had been in the range of $19.5 and $21.5 million. The revenue shortfall primarily resulted from anticipated returns of a specific transceiver sold to one customer. As a result of certain quality problems experienced with the product, management decided to accept returns and rework the parts to the customer's satisfaction in order to maintain the integrity of Stratos' business and product line. To reduce the risk of a recurrence, Stratos has implemented additional quality screens within its supply chain. "While we are disappointed with the revenue shortfall, we are confident that we will resolve these issues in a timely manner," said David Slack, Chief Financial Officer. Stratos International plans to announce complete fiscal 2005 second quarter financial results on or around December 3, 2004. ABOUT STRATOS INTERNATIONAL Stratos International, Inc. is a leading designer, developer and manufacturer of active and passive optical, optoelectronic, RF and Microwave components, subsystems and interconnect products used in telecom, enterprise, military and video markets. Stratos has a rich history of optical and mechanical packaging expertise and has been a pioneer in developing several optical devices using innovative form factors for telecom, datacom and harsh environments application. This expertise, coupled with several strategic acquisitions, has allowed the Company to amass a broad range of products and build a strong IP portfolio of more than 100 patents. The Company is a market leader in several niches including high margin specialty optical products such as RJ and low rider transceivers, Media Interface Adapters, flex circuits, as well as high performance RF and microwave coax and triax interconnect products. The Company currently serves more than 400 active customers in telecom, military and video markets. This press release contains predictions, estimates and other forward- looking statements regarding anticipated revenue growth, customer orders, manufacturing capacity and financial performance. All forward-looking statements in this press release are based on information available to the company as of the date hereof, and we assume no obligation to update any such forward-looking statements. Forward-looking statements are subject to risks and uncertainties and actual results may differ materially from any future performance suggested. These factors include rapid technological change in the optical communications industry; fluctuations in operating results; the Company's dependence on a few large customers; and competition. Other risk factors that may affect the Company's performance are listed in the Company's annual report on Form 10-K and other reports filed from time to time with the Securities and Exchange Commission. For additional information contact Stratos International at 7444 W. Wilson Ave., Chicago, IL USA 60706-4549; Tel: 708.867.9600. Fax: 708.867.0996. Website: http://www.stratoslightwave.com/ . DATASOURCE: Stratos International, Inc. CONTACT: David A. Slack, Chief Financial Officer, or Barry R. Hollingsworth, Investor Relations, +1-708-867-9600, both of Stratos International, Inc. Web site: http://www.stratoslightwave.com/

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