Lumera Corporation Announces NASDAQ Notice; Change in Exchange Ratio and Preliminary Approval of all Annual Meeting Measures

  
    
  
  
    
      Lumera Corporation (NASDAQ:LMRA) (the "Company") today announced that it 
      has received information from the staff at the Nasdaq Stock Market, 
      Inc., indicating that the NASDAQ Listing Qualifications Department has 
      determined that GigOptix, Inc. will be subject to the initial listing 
      requirements, rather than the continued listing requirements. GigOptix, 
      Inc. will not meet the requirement of at least $15 million of public 
      equity value for initial listing on the Nasdaq Capital Market. 
      Therefore, upon consummation of the merger, the common stock of 
      GigOptix, Inc. will be listed for quotation on the OTC Bulletin Board, 
      which is not a national securities exchange. It is a condition to the 
      closing of the merger under the Agreement and Plan of Merger, dated as 
      of March 27, 2008, by and among GigOptix, LLC, the Company, GigOptix, 
      Inc., Galileo Merger Sub G, Inc. and Galileo Merger Sub L, Inc (the 
      “Merger Agreement”) that GigOptix, Inc. common stock be approved for 
      listing on the Nasdaq Global Market or the Nasdaq Capital Market. 
      However, the Company and GigOptix LLC intend to waive this closing 
      condition.
    
    
      Additionally, the Company announced that the Board of Directors of the 
      Company and Management Board of GigOptix are expected to approve a 
      change in the exchange ratio for the Company’s common stock pursuant to 
      the Merger Agreement. The Merger Agreement currently provides that each 
      share of the Company’s common stock will be converted into the right to 
      receive 0.25 shares of GigOptix, Inc. common stock, which is a 4 to 1 
      reverse split. However, the parties have agreed that each share of the 
      Company’s common stock will instead be converted into the right to 
      receive 0.125 shares of GigOptix, Inc. common stock, which is a 8 to 1 
      reverse split. The exchange ratio applicable to GigOptix LLC membership 
      unit holders will be adjusted to take into account this change and to 
      maintain the same proportional ownership of the shares of GigOptix, Inc. 
      Following the issuance of GigOptix, Inc. stock options and common stock 
      warrants in the merger, former Company security holders will own 
      approximately 50%, and former GigOptix LLC security holders will own 
      approximately 50% of the GigOptix, Inc. common stock, assuming all 
      outstanding GigOptix, Inc. options and warrants are exercised. The total 
      number of shares outstanding following the merger will be 5,227,855, and 
      current Lumera shareholders will hold 3,011,044 shares.
    
    
      Finally, the Company is pleased to announce that, based on current votes 
      and assuming that no stockholders change or withdraw their votes prior 
      to the Annual Meeting, all of the proposals before the stockholders at 
      the Annual Meeting to be held December 4, 2008 have received sufficient 
      votes to pass. The Merger is currently anticipated to close on December 
      9, 2008, and the first trading day for GigOptix, Inc. will be December 
      10, 2008.
    
    
      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.
    
    
      About GigOptix
    
    
      GigOptix LLC is a leading fab-less semiconductor company specializing in 
      the specification, design, development and sale of integrated circuits 
      and electronic multi-chip module solutions. For more information, please 
      visit www.gigoptix.com.
    
    
      On October 27, 2008, the Securities and Exchange Commission declared 
      effective a registration statement on Form S-4 filed by GigOptix, Inc., 
      which contains a proxy statement/prospectus of Lumera regarding the 
      proposed merger transaction between GigOptix and Lumera, as well as 
      other relevant documents concerning the transaction. WE URGE INVESTORS 
      AND SECURITY HOLDERS OF LUMERA TO READ THE REGISTRATION STATEMENT AND 
      PROXY STATEMENT/PROSPECTUS AND THE OTHER RELEVANT DOCUMENTS BECAUSE THEY 
      CONTAIN IMPORTANT INFORMATION ABOUT GIGOPTIX, INC., LUMERA, GIGOPTIX LLC 
      AND THE PROPOSED TRANSACTION. A definitive proxy statement/prospectus 
      was mailed to Lumera’s stockholders on or about October 28, 2008 seeking 
      their approval of the merger agreement and related matters, and a 
      prospectus supplement was mailed on or about November 24, 2008 
      containing additional information. Investors and security holders may 
      obtain a free copy of the registration statement and proxy 
      statement/prospectus 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.
    
    
      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.
    
    
      Forward-Looking Statements
    
    
      Certain statements in this document may contain forward-looking 
      information regarding Lumera and the combined company after the 
      completion of the transactions that are intended to be covered by the 
      safe harbor for "forward-looking statements" provided by the Private 
      Securities Litigation Reform Act of 1995. These statements include, but 
      are not limited to, the benefits of the business combination transaction 
      involving Lumera and GigOptix, LLC including future financial and 
      operating results, the combined company's plans, objectives, 
      expectations and intentions and other statements that are not historical 
      facts. Such statements are based upon the current beliefs and 
      expectations of the management of Lumera and GigOptix, LLC and are 
      subject to significant risks and uncertainties. Actual results may 
      differ from those set forth in the forward-looking statements. You 
      should not place undue reliance on forward-looking statements, which 
      speak only as of the date of this document. Except for any obligation to 
      disclose material information under the Federal securities laws, Lumera 
      undertakes no obligation to release publicly any revisions to any 
      forward-looking statements to reflect events or circumstances after the 
      date of this document.