Xponent's business model is unique in the industry. We are a horizontal provider with products and solutions that address nearly all single-mode optical component applications. Xponent's goal is to dramatically simplify the fundamentals of optical assembly and packaging. We do this by replacing free space optics (FSO) with Surface Mount Photonics (SMP). Our customers benefit from SMP through different business models. We will work with our customers any way our customers want to work with us. These options include:

• Packaged optical assemblies
• Fiber-ready optical assemblies (bonded, tested and burned-in SMP chipsets)
• Customized SMP products and processing, and
• Technology licensing

Xponent's target customers are optical component and module producers who want to drive down costs while improving performance. Our customers benefit both from reduced design and materials costs and from the ability to dramatically decrease the costs of optical assembly and manufacturing. With the advent of Surface Mount Photonics, our customers' customers, including telecommunications and enterprise networking equipment OEMs, will be able to meet strategic goals for manufacturability, increased supply chain efficiency, direct cost reductions, footprint reductions and increased thermal range.