CAPELLA INTELLIGENT SUBSYSTEMS APPOINTS TWO NEW EXECUTIVES TO FURTHER STRENGTHEN MANAGEMENT TEAM

Bruce Gray Named Capella President and Pat Day Named Vice President, Engineering and Product Development

SAN JOSE, CA – March 3, 2011 –Capella Intelligent Subsystems today announced two senior appointments to further strengthen its management team. This comes as the company continues to build on its core strengths of wavelength selective switch (WSS) technology for use in reconfigurable optical add/drop multiplexers (ROADM) and optical cross connect (OXC) applications for high-speed communications networks.

Bruce Gray joins Capella as President, reporting to Larry Schwerin, Capella’s Chief Executive Officer. He is responsible for day-to-day operations of the company including manufacturing operations, advanced technology, engineering and new product development.

Pat Day joins Capella as Vice President, Engineering and Product Development reporting to Mr. Gray. In his role, he is responsible for developing new products that utilize the appropriate advanced technologies and satisfy real world customer requirements and engineering objectives.

“We brought to Capella two extremely talented and experienced executives with Bruce and Pat. Their operational and engineering expertise will complement our current management team,” said Larry Schwerin, Capella CEO. “They will play a key role in helping attain our goal of innovation leadership in WSS technology.”

Prior to joining Capella, Mr. Gray held several senior consulting positions with major semiconductor companies and has had over 30 years of experience in the semiconductor industry. He was the CEO of Silterra Malaysia Sdn Bhd (a semiconductor foundry), and also served as the President/COO, and EVP for Manufacturing Operations during his tenure with the company. Mr. Gray was previously the President/COO and acting CEO of Xicor, Inc., and prior to Xicor, he had worked at National Semiconductor Corporation for over 25 years. His last position was Managing Director of the Advanced Technology Group in Santa Clara, CA.

Mr. Day has over 25 years of experience in the development of telecommunications and networking equipment. Prior to joining Capella, Mr. Day was VP of Engineering at Opnext, where he was responsible for 100Gbps transponder product development in the Optical Subsystems business unit. Prior to Opnext, Mr. Day was VP of Systems Development at Stratalight responsible for 40Gbps and 100Gbps transponder products. He also served as Director of Engineering at Adtran where he was responsible for the development of Multi-Service Access Platforms and VP of Engineering for Carrier Access Corporation. Pat has also held senior engineering and engineering management positions at Pulsecom, Seiscor Technologies and the Williams companies (parent company of Wiltel and Williams Communications).

About Capella Intelligent Subsystems
Capella is the industry leader of wavelength selective switch (WSS) technology for use in reconfigurable optical add/drop multiplexers (ROADM) and optical cross connect (OXC) applications. Capella's patented CRx® and WavePath® products provide the best performing WSS on the market offering dynamic, remote reconfigurability with fully integrated optical channel monitoring (OCM) for simplifying network operations and planning, while dramatically reducing costs. Capella's products are used in both metro and long haul applications. Founded in 2000, Capella is a privately-held company located in San Jose, California. For more information, go to www.capellainc.com.

Editorial Contact:

Rebecca B. Andersen
Pacific Bridge Marketing
(202) 596-2652
RAndersen@PacificBridgeMarketing.com