14th November 2006

EMCORE Shortfall Due to PV Problems

EMCORE Corporation announced that revenue from continuing operations for the fourth quarter of fiscal 2006 is currently expected to be approximately $35 m, below expectations of $40 m from continuing operations. Continuing operations relate to the Company’s Fiber Optic and Photovoltaic divisions.

Notable factors include the fact that it sold its Electronic Materials and Device division (to IQE plc) during the fourth fiscal quarter. Moreover, it sufferred a shortfall primarily associated with its Photovoltaics Division. The latter did not receive export licenses covering three international satellite programs in time to ship product during the fourth quarter. however, it has since received license approvals on all three of the programs and will be shipping against those orders during the first quarter of fiscal 2007. A fourth export license is expected later in the first quarter of fiscal 2007. The Company is currently required to obtain approvals from the Department of State in order to export certain satellite photovoltaic products. The Company has shipped these specific products in the past and has requested a Commodity Jurisdiction classification that would simplify the export of these products.

Fourth quarter revenues from the Company’s fibre optic division are expected to be approximately $28.0 m, an increase of approximately 7.7%, or $2.0 m from the $26.0 m recorded in the third fiscal quarter ended June 30, 2006. The revenue increase was the result of an increase in demand for its 10G product line. By contrast, it experienced flat revenues in its video transport line for CATV and FTTX products.

EMCORE says it expects revenue shortfalls to impact gross margins in the fourth fiscal quarter. General and administrative expenses are also expected to increase due to the expenses associated with the Company’s voluntary review of past stock option grants, it pointed out.

“While we were certainly disappointed that the export licenses were not issued in the fourth quarter as expected, now that the license applications have been approved, the product will ship in our first quarter. As a result, our Photovoltaics division should report record revenue gains in the first fiscal quarter of 2007,” stated Reuben F. Richards, Jr., President and CEO. “First quarter revenues in our fiber optics segment are estimated to increase 3% over the fourth quarter,” Mr. Richards added.

Web: www.emcore.com