Lumera Corporation Announces Successful Polymer Modulator Test Results and Updates Progress on its Proposed Merger with GigOptix

Lumera Corporation (NASDAQ:LMRA), a leader in the field of photonic communications, announced today that it has successfully completed Telcordia standard reliability testing of its packaged polymer-based electro-optic modulators. "Achieving positive test results for our modulators demonstrates the viability of Lumera’s electro-optic polymer technology for component fabrication. These results validate that polymer modulators can pass the same rigorous tests required of industry standard components. Lumera is now in a position to share reliability test results with potential customers and business partners; additionally, we are very encouraged with ongoing customer discussions and particularly with the possibilities arising in the proposed merger with GigOptix,” said Dr. Raluca Dinu, Vice President, Electro-Optics Business Unit. Lumera’s testing program was based on exacting industry standard tests including high temperature operation at 85 degrees C for 2,000 hours, with 50mW laser power at 1550 nm, temperature cycling ranging between -40 degrees C and 85 degrees C for 500 cycles, high temperature storage at 85 degrees C for 2,000 hours, low temperature storage at -40 degrees C for 72 hours and thermal and mechanical shock to name a few. While further statistical testing is necessary, this marks the first time that polymer modulators have successfully passed reliability tests as specified in the GR468 standard. Lumera also announced that activities associated with its proposed merger with GigOptix, LLC are progressing. Information pertaining to the proposed merger, historical results for GigOptix LLC and the combined businesses are expected to become available when an initial Registration Statement on Form S-4 is filed with the SEC. About Lumera Lumera is a leader in photonic communications. The company designs electro-optic components based on proprietary polymer compounds for the telecommunications and computing industries. For more information, please visit www.lumera.com. Certain statements contained in this release are forward-looking statements that involve a number of risks and uncertainties. Factors that could cause actual results to differ materially from those projected in the company's forward-looking statements include the following: market acceptance of our technologies and products; our ability to obtain financing; our financial and technical resources relative to those of our competitors; our ability to keep up with rapid technological change; government regulation of our technologies; our ability to enforce our intellectual property rights and protect our proprietary technologies; the ability to obtain additional contract awards and to develop partnership opportunities; the timing of commercial product launches; the ability to achieve key technical milestones in key products; and other risk factors identified from time to time in the company's SEC reports, including its Annual Report on Form 10-K, and its Quarterly Reports on Form 10-Q. Lumera will file with the SEC a registration statement on Form S-4, which will contain a proxy statement/prospectus regarding the proposed merger transaction, as well as other relevant documents concerning the transaction. WE URGE INVESTORS AND SECURITY HOLDERS TO READ THE REGISTRATION STATEMENT AND PROXY STATEMENT/PROSPECTUS AND THESE OTHER DOCUMENTS WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT LUMERA, GIGOPTIX LLC AND THE PROPOSED TRANSACTION. A definitive proxy statement/prospectus will be sent to Lumera’s stockholders seeking their approval of Lumera’s issuance of shares in the transaction and to members of GigOptix LLC. Investors and security holders may obtain a free copy of the registration statement and proxy statement/prospectus (when available) and other documents filed by Lumera with the SEC at the SEC’s web site at www.sec.gov. Free copies of Lumera’s SEC filings are available on Lumera’s web site at www.lumera.com and also may be obtained without charge by directing a request to Lumera Corporation, 19910 North Creek Parkway, Bothell, WA 98011-3008, Attention: Investor Relations or by telephoning us at (425) 398-6546. Lumera and its directors and executive officers may be deemed, under SEC rules, to be participants in the solicitation of proxies from Lumera’s stockholders with respect to the proposed transaction. Information regarding Lumera’s directors and executive officers is included in its annual report on Form 10-K filed with the SEC on March 17, 2008, as amended by Form 10-K/A filed with the SEC on March 27, 2008. More detailed information regarding the identity of potential participants and their direct or indirect interests in the transaction, by securities holdings or otherwise, will be set forth in the registration statement and proxy statement/prospectus and other documents to be filed with the SEC in connection with the proposed transaction. This communication shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.