FiberCore Boasts Record Quarter

CHARLTON, Mass. -- FiberCore, Inc. (Nasdaq: FBCE), aleading manufacturer and global supplier of optical fiber and preform for thetelecommunication and data communications markets, today announced results forthe second quarter ended June 30, 2001. Sales in the second quarter of 2001 increased 182% to a record$18.1 million from $6.4 million in the year ago period. Sales benefited fromcontinued strong demand from new and existing customers, higher pricing andthe inclusion of Xtal FiberCore Brasil S.A. from June 1, 2000. Xtalcontributed $12.2 million to sales in the quarter compared to $2.6 million ofsales for last year's second quarter. FiberCore Jena's sales increased by 47%for the period. Net income was $3.0 million, or $0.05 per diluted share, inthe second quarter of 2001. This compares favorably to a net loss ofapproximately $5.3 million, or $0.11 per share, in last year's second quarter.The net loss in the second quarter of 2000 included non-cash interest chargesof $5.3 million, or $0.11 per share. Excluding this non-cash interest charge,the second quarter 2000 was basically at breakeven. Gross profit in the second quarter of 2001 grew to $7.2 million, or40.0% of sales, from $1.7 million, or 26.4% of sales, in last year's secondquarter. FiberCore's gross margin continued to benefit from strong volumesand continued manufacturing process improvements. "At June 30, 2001, our backlog grew to over $320 million from $260 millionat the end of the first quarter and $190 million at year-end," commented Dr.Mohd Aslami, President and CEO. "In addition, 65% of our current backlog isin take-or-pay contracts, which helps support our long term growth plans." FiberCore Inc.