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Sycamore Networks Signs Definitive Agreement To Sell Intelligent Bandwidth Management Business And Announces Intent To Wind Down Remaining Operations

On October 22, 2012, the Board of Directors of the Company also approved a special cash distribution of $2.00 per share of common stock, which will be paid on November 12, 2012 to stockholders of record as of November 2, 2012. In accordance with NASDAQ Rule 11140(b), the ex-dividend date will be November 13, 2012, the first business day following the payment date for the cash distribution.

“After careful consideration of the Company’s strategic alternatives, we believe these actions are in the best interests of Sycamore’s stockholders, as well as its customers and employees,” said Daniel E. Smith, president and chief executive officer, Sycamore Networks. “We are pleased with Marlin’s decision to acquire our Intelligent Bandwidth Management business operations, which will provide for continued support of our global customer base.”

Both the asset sale and dissolution are subject to stockholder approval. The Company intends to file a proxy statement with respect to a special meeting of the Company’s stockholders to seek stockholder approval for each of the sale of the assets of its Intelligent Bandwidth Management business and the dissolution of the Company pursuant to the Plan of Liquidation and Dissolution following the completion of the asset sale and a final determination regarding the Company’s IQstream business. The Company’s Board of Directors unanimously approved the sale of the assets of the Intelligent Bandwidth Management product and service business to Marlin and the dissolution of the Company and recommends that the Company’s stockholders vote in favor of the asset sale and the dissolution.

Blackstone Advisory Partners acted as financial advisor to the Company.

About Sycamore Networks

Sycamore Networks, Inc. (NASDAQ: SCMR) develops and markets intelligent bandwidth management solutions for fixed line and mobile network operators worldwide. We also develop and market a mobile broadband solution designed to help mobile operators reduce congestion in mobile access networks. Sycamore products enable network operators to efficiently and cost-effectively provision and manage network capacity to support a wide range of converged services such as voice, video and data. Our global customer base includes Tier 1 service providers, government agencies, and utility companies. For more information, please visit www.sycamorenet.com.

About Marlin Equity Partners

Marlin Equity Partners is a Los Angeles, California-based private investment firm with over $1 billion of capital under management. The firm is focused on providing corporate parents, shareholders and other stakeholders with tailored solutions that meet their business and liquidity needs. Marlin invests in businesses across multiple industries where its capital base, industry relationships and extensive network of operational resources significantly strengthens a company's outlook and enhances value. Since its inception, Marlin, through its group of funds and related companies, has successfully completed over 60 acquisitions. For more information, please visit www.marlinequity.com.

Safe Harbor for Forward-Looking Statements

Certain statements contained herein are "forward looking" statements as such term is defined in the Private Securities Litigation Reform Act of 1995, including the date that the Company expects the asset sale to be completed. Because forward-looking statements include risks and uncertainties, actual results may differ materially from those expressed or implied and include, but are not limited to, those discussed in filings by the Company with the SEC.

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