ADVA Optical Networking

Andreas G. RutschChief Financial Officer

May 31, 2006Credit Suisse European Technology Conference

Barcelona, Spain

© 2006 ADVA Optical Networking. All rights reserved.2

Market overview

15%

3-year CAGR

25%

23%

Total optical WDM + Ethernet access market

2005: USD1.3 bn

32%

57%

11%

Sources: Dell'Oro, Infonetics, RHK and ADVA internal estimates - April 2006

© 2006 ADVA Optical Networking. All rights reserved.3

Market growth drivers

! Core router and switch interconnect ! OTN based wavelength services! Integration of all legacy networks! Relief for fiber exhaust

! Core router and switch interconnect ! OTN based wavelength services! Integration of all legacy networks! Relief for fiber exhaust

! DSL, PON and wireless backhaul! High speed business customer access! Intelligent Ethernet services

! DSL, PON and wireless backhaul! High speed business customer access! Intelligent Ethernet services

! Corporate backbones! Grid computing! LAN extension

! Corporate backbones! Grid computing! LAN extension

! Business continuity! Disaster recovery! SAN extension

! Business continuity! Disaster recovery! SAN extension

© 2006 ADVA Optical Networking. All rights reserved.4

Competitors

! Simplified architecture! Strong 10G and

optical architecture! Lowest TCO! Established

channel strategy

! Optimizedproduct family

! All protocols! Storage qualifications! Lowest TCO! Established

channel strategy andcustomer base

! FSP 2000 feature set! Storage qualifications! Ease of use! Lowest pricing! Established

customer base

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Primarycompetitors

Marketsegments

OurADVAntage

© 2006 ADVA Optical Networking. All rights reserved.5

Sales distribution strategy

DIRECT VAR OEM

! Application focus

! Technology partnership

! Complete FSP solutions

! Regional focus

! Vertical segments

! Long relationships

! Installed base

! NMS integration

! Long relationships

© 2006 ADVA Optical Networking. All rights reserved.6

IFRS consolidated quarterly financial performance

Netliquidity

(millions of EUR)

10.412.2

13.8

Sep-05 Dec-05 Mar-06

Pro forma operating income*

(millions of EUR)

5.75.15.6

Q3 2005 Q4 2005 Q1 2006

37.135.833.7

Q3 2005 Q4 2005 Q1 2006

Revenues and gross margin

(millions of EUR, % of revenues)

Pro formanet income*

(millions of EUR)

4.0 3.6 3.8

Q3 2005 Q4 2005 Q1 2006

16.5(49.1%)

17.8(49.7%)

17.8(47.8%)

* Note: Pro forma operating income is calculated prior to non-cash charges related to the stock option programs and amortization and impairment of goodwilland acquisition-related intangible assets

© 2006 ADVA Optical Networking. All rights reserved.7

Our ADVAntage

Speed for customers

!Responsive team

!Customized delivery

!Global coverage

People

!Experienced

!Visionary

!Approachable

Optical+Ethernet innovation

!Scalable optical transport

!Intelligent Ethernet access

!Cost-effective end-to-end networking

The networking solutions partner for all high-speed data, storage, voice and video applications.

The networking solutions partner for all high-speed data, storage, voice and video applications.

Thank You

Andreas G. Rutscht +49 89 89 06 65 200

INVESTOR RELATIONSWolfgang Guessgen

t +49 89 89 06 65 240