Merriman Curhan Ford & Co.2nd Annual IP Video ConferenceMarch 3, 2008

2

Opnext

“ Opnext is a leading designer and manufacturer of transmit and receive optical modules and components which enables high-speed telecommunications and data communications networks globally”

3

Deployment of Broadband Access Capabilities (CATV/FTTC/FTTP)

+

Proliferation of applications

Demand for Bandwidth is Growing Exponentially

Peer-to-Peer

Storage

Multimedia

Online Gaming

HDVideo

IP-TV

VideoConferencing

Ban

dw

idth

De

man

d

Now Future

4

Total IP Traffic

Source: Cisco January 2008

-

10,000

20,000

30,000

2005 2006 2007 2008 2009 2010 2011

PB

/m

on

th

Mobility

Business Internet Traffic

Business IP WAN Traffic

Consumer Internet

Consumer Non-Internet IPVideo Traffic

5%

13%

6%

43%

33%

• IP Traffic will double every two years• Consumer IP traffic is growing at a 52% CAGR• One third of all Internet Traffic in 2011 will be non-Internet traditional video services

5

MetroSonet/SDH

Rings

ResidentialNetwork

Network Architecture

All Optical Backbone

National IP Network

PON

DSLAM

MSO

xDSL

CorporateNetwork

ONU

CableModem

OLT

HeadEnd

Multi-Servic

eEdge

Router

Video On Demand Servers

Voice ApplicationServers

• • • Internet

PSTN

IP / Optical Infrastructure

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10G Telecom 10G Datacom 40G Datacom 40G Telecom Other

$487$721

$261$377

$46

$84

$2,548

$2,442

2007 2009

$487$589

$721

$261

$328

$377

$46

$66

$84

$36

2007 2008 2009

Opnext Core Business Continues To Be High-Growth 10G and 40G Segments

Source: Ovum-RHK 2007, LightCounting 2008, and Opnext

Total Optical Component Spending ($mm)Total Optical Component Spending ($mm) 10G and 40G Module Spending ($mm)10G and 40G Module Spending ($mm)

$3,236

$3,766 10G and 40G comprise ~80% of our revenues

63% CAGR

22% CAGR

20% CAGR

24% CAGR

$36

$794$794

$1,218$1,218

$983$983

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Selected Opnext Customers

Major Telecom CustomersMajor Telecom CustomersMajor Telecom CustomersMajor Telecom Customers

Major Datacom CustomersMajor Datacom CustomersMajor Datacom CustomersMajor Datacom Customers

8

Annual Financial Data

* Excludes asset impairment charge during the year ended Mar-04

Sales(in millions)

$0.0

$50.0

$100.0

$150.0

$200.0

$250.0

Sales $79.4 $138.4 $151.7 $222.9 $210.8

Mar-04 Mar-05 Mar-06 Mar-07 YTD Dec-07

Gross Margin

0.0%

5.0%10.0%

15.0%

20.0%

25.0%30.0%

35.0%

40.0%

Mar-04 Mar-05 Mar-06 Mar-07 YTD Dec-07

Net Income (Loss) Per Share*Fully Diluted

($1.57)

($0.63)

($0.61)

$0.01

$0.29

Mar-04

Mar-05

Mar-06

Mar-07

YTD Dec-07

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Quarterly Financial Data

*Excludes Stock-based Compensation Expense

Sales(in millions)

$0.0

$20.0

$40.0

$60.0

$80.0

$100.0

Sales $40.4 $55.3 $61.7 $65.4 $67.8 $76.6 $66.4

Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07

Gross Margin *

29.0%

30.0%

31.0%

32.0%

33.0%

34.0%

35.0%

36.0%

Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07

Net Income (Loss) Per Share*Fully Diluted

($0.08)

$0.02

$0.05

$0.08

$0.09

$0.11

$0.09

Jun-06

Sep-06

Dec-06

Mar-07

Jun-07

Sep-07

Dec-07