<SUBMISSION>
<ACCESSION-NUMBER>0000891618-03-006280
<TYPE>S-3/A
<PUBLIC-DOCUMENT-COUNT>5
<FILING-DATE>20031212
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>JDS UNIPHASE CORP /CA/
<CIK>0000912093
<ASSIGNED-SIC>3674
<IRS-NUMBER>942579683
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>0630
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>S-3/A
<ACT>33
<FILE-NUMBER>333-110527
<FILM-NUMBER>031051538
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>1768 AUTOMATION PARKWAY
<CITY>SAN JOSE
<STATE>CA
<ZIP>95131
<PHONE>4085465000
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>1768 AUTOMATION PARKWAY
<CITY>SAN JOSE
<STATE>CA
<ZIP>95131
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>S-3/A
<SEQUENCE>1
<FILENAME>f94556a1sv3za.htm
<DESCRIPTION>AMENDMENT NO. 1 TO FORM S-3
<TEXT>
<HTML>
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<TITLE>JDS Uniphase Corporation Amend. No. 1 to Form S-3</TITLE>
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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

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 <B><FONT size="2">As filed with the Securities and Exchange
Commission on December&nbsp;12, 2003</FONT></B>
</DIV>

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</FONT></DIV>

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<B><FONT size="2">Registration No.&nbsp;333-110527</FONT></B>
</DIV>

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<B><FONT size="4">UNITED STATES SECURITIES AND EXCHANGE
COMMISSION</FONT></B>

<DIV align="center">
<B>Washington, D.C. 20549</B>
</DIV>

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<P align="center">
<B><FONT size="4">Amendment No.&nbsp;1</FONT></B>

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<DIV align="center">
<B>to</B>
</DIV>

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</FONT></DIV>

<DIV align="center">
<B><FONT size="4">Form&nbsp;S-3</FONT></B>
</DIV>

<DIV align="center">
<B>REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933</B>
</DIV>

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<HR size="1" width="26%" align="center" noshade>

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<B><FONT size="6">JDS Uniphase Corporation</FONT></B>

<DIV align="center">
<I><FONT size="2">(Exact name of registrant as specified in its
charter)</FONT></I>
</DIV>

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    <TD width="40%"><FONT size="2">&nbsp;</FONT></TD>
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    <TD align="center" valign="top">
    <B><FONT size="2">Delaware</FONT></B></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <B><FONT size="2">94-2579683</FONT></B></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <I><FONT size="2">(State or other jurisdiction of<BR>
    incorporation or organization)</FONT></I></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <I><FONT size="2">(I.R.S. Employer<BR>
    Identification Number)</FONT></I></TD>
</TR>

</TABLE>
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<DIV align="center">
<B><FONT size="2">1768&nbsp;Automation Parkway</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">San Jose, California 95131</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(408)&nbsp;546-5000</FONT></B>
</DIV>

<DIV align="center">
<I><FONT size="2">(Address, including zip code, and telephone
number,</FONT></I>
</DIV>

<DIV align="center">
<I><FONT size="2">including area code, of registrant&#146;s
principal executive offices)</FONT></I>
</DIV>

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<B><FONT size="2">Ronald C. Foster</FONT></B>

<DIV align="left"><FONT size="1">

</FONT></DIV>

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</FONT></DIV>

<DIV align="center">
<B><FONT size="2">Chief Financial Officer</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center">
<B><FONT size="2">JDS Uniphase Corporation</FONT></B>
</DIV>

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</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center">
<B><FONT size="2">1768&nbsp;Automation Parkway</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center">
<B><FONT size="2">San Jose, California 95131</FONT></B>
</DIV>

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</FONT></DIV>

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</FONT></DIV>

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<B><FONT size="2">(408)&nbsp;546-5000</FONT></B>
</DIV>

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</FONT></DIV>

<DIV align="center">
<I><FONT size="2">(Name, address, including zip code, and
telephone number,</FONT></I>
</DIV>

<DIV align="center">
<I><FONT size="2">including area code, of agent for
service)</FONT></I>
</DIV>

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<HR size="1" width="26%" align="center" noshade>

<P align="center">
<B><I><FONT size="2">Copies to:</FONT></I></B>

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<TR>
    <TD width="55%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="42%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <B><FONT size="2">Christopher S. Dewees, Esq.<BR>
    Senior Vice President and General Counsel<BR>
    JDS Uniphase Corporation<BR>
    1768&nbsp;Automation Parkway<BR>
    San Jose, California 95131<BR>
    (408)&nbsp;546-5000</FONT></B></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <B><FONT size="2">Michael C. Phillips, Esq.<BR>
    P.&nbsp;Rupert Russell, Esq.<BR>
    Morrison&nbsp;&#38; Foerster LLP<BR>
    755&nbsp;Page Mill Road<BR>
    Palo Alto, California 94304<BR>
    (650)&nbsp;813-5620</FONT></B></TD>
</TR>

</TABLE>
</CENTER>

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<HR size="1" width="26%" align="center" noshade>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">Approximate date of commencement of proposed
sale to the
public:</FONT></B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;From
time to time after the effective date of this Registration
Statement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If the only securities on this Form are being
offered pursuant to dividend or reinvestment plans, please check
the following
box.&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;</FONT>
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If any of the securities being registered on this
Form are to be offered on a delayed or continuous basis pursuant
to Rule&nbsp;415 under the Securities Act of 1933 (the
&#147;Securities Act&#148;), other than securities offered only
in connection with dividend or interest reinvestment plans,
check the following
box.&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#254;</FONT>
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If this Form is filed to register additional
securities for an offering pursuant to Rule&nbsp;462(b) under
the Securities Act, please check the following box and list the
Securities Act registration statement number of the earlier
effective registration statement for the same
offering.&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;</FONT>&nbsp;<HR size="1" width="18%" align="left" noshade>
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If this Form is a post-effective amendment filed
pursuant to Rule&nbsp;462(c) under the Securities Act, check the
following box and list the Securities Act registration statement
number of the earlier effective registration statement for the
same
offering.&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;</FONT>&nbsp;<HR size="1" width="18%" align="left" noshade>
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If delivery of the prospectus is expected to be
made pursuant to Rule&nbsp;434, please check the following
box.&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;</FONT>
</FONT>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">The Registrant hereby amends this Registration
Statement on such date or dates as may be necessary to delay its
effective date until the registrant shall file an amendment
which specifically states that this Registration Statement shall
thereafter become effective in accordance with Section&nbsp;8(a)
of the Securities Act of 1933 or until the Registration
Statement shall become effective on such date as the Commission,
acting pursuant to Section&nbsp;8(a), may determine.</FONT></B>

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<HR size="1" width="100%" align="left" noshade>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<TABLE width="100%" border="1" cellpadding="5"><TR><TD>
<B><FONT size="2" color="#E8112D">The information in this
prospectus is not complete and may be changed. The selling
securityholders may not resell these securities until the
registration statement filed with the Securities and Exchange
Commission is effective. This prospectus is not an offer to sell
these securities and it is not soliciting an offer to buy these
securities in any state where the offer or sale is not
permitted.</FONT><FONT size="2"> <BR>
</FONT></B>
</TD></TR></TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center">
<B><FONT size="2" color="#E8112D">SUBJECT TO COMPLETION, DATED
DECEMBER&nbsp;12, 2003</FONT></B>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<B><FONT size="2">PROSPECTUS</FONT></B>

<P align="center">
<B><FONT size="4">$475,000,000</FONT></B>

<P align="center">
<IMG src="f94556a1f9455600.gif" alt="(JDS Uniphase Corporation Logo)">

<P align="center">
<B><FONT size="6">JDS Uniphase Corporation</FONT></B>

<P align="center">
<B><FONT size="4">Zero Coupon Senior Convertible Notes due
2010</FONT></B>

<DIV align="center">
<B><FONT size="4">96,153,846 Shares of Common Stock</FONT></B>
</DIV>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="left">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus
relates to $475,000,000 aggregate principal amount of our Zero
Coupon Senior Convertible Notes due 2010 (the &#147;Notes&#148;)
and 96,153,846 shares of our Common Stock, par value $0.001 per
share (the &#147;Common Stock&#148;), which are initially
issuable upon conversion of the Notes plus such additional
indeterminate number of shares of Common Stock as may become
issuable upon conversion of the Notes as the result of any
adjustment to the conversion price. We issued the Notes in a
private placement in October 2003. The initial purchasers resold
the Notes to qualified institutional buyers in accordance with
Rule&nbsp;144A under the Securities Act of 1933, as amended (the
&#147;Securities Act&#148;). This prospectus will be used by the
selling securityholders named in this prospectus to resell their
Notes and the Common Stock issuable upon conversion of their
Notes.
</FONT>

<P align="left">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holders of the
Notes may convert the Notes into shares of our Common Stock at a
conversion rate of 202.4291 shares per $1,000 principal amount
of notes, subject to adjustment, before close of business on
November&nbsp;15, 2010 only under the following circumstances:
(1)&nbsp;during any fiscal quarter commencing after
December&nbsp;31, 2003, if the closing sale price of our Common
Stock exceeds 110% of the conversion price for at least 20
trading days in the 30 consecutive trading days ending on the
last trading day of the preceding fiscal quarter; (2)&nbsp;if
the closing sale price of our Common Stock exceeds 110% of the
conversion price on any date after November&nbsp;15, 2008, and
at all times thereafter; (3)&nbsp;during the five business day
period after any five consecutive trading day period in which
the trading price per note for each day of that period was less
than 98% of the product of the closing sale price of the Common
Stock and the conversion rate, provided that noteholders will
receive an amount of cash or Common Stock, or any combination
thereof, equal to the principal amount of notes being converted
pursuant to this contingency if the closing sale price of our
Common Stock exceeds the conversion price; (4)&nbsp;if we call
the notes for redemption; or (5)&nbsp;upon the occurrence of
certain corporate events. Upon conversion, we have a right to
deliver cash (or a combination of cash and shares of Common
Stock) in lieu of shares of our Common Stock.
</FONT>

<P align="left">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beginning
November&nbsp;15, 2008, under certain circumstances we may
redeem any of the Notes. Holders of the Notes may require us to
repurchase the notes for cash on November&nbsp;15, 2008.
</FONT>

<P align="left">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon the occurrence
of certain corporate events, each holder of the Notes may
require us to purchase all or a portion of such holder&#146;s
Notes at a price equal to the principal amount, plus accrued and
unpaid additional interest, if any, on such notes to the date of
purchase. We may choose to pay the repurchase price in cash,
shares of our common stock, shares of the surviving corporation
or a combination thereof.
</FONT>

<P align="left">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The notes are our
senior unsecured debt and will rank on a parity with all of our
other existing and future unsecured debt and prior to all
subordinated debt.
</FONT>

<P align="left">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Notes will
mature on November&nbsp;15, 2010.
</FONT>

<P align="left">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are filing the
registration statement, of which this prospectus is a part,
pursuant to contractual obligations. We will not receive any
proceeds from the resale of the Notes and the shares of Common
Stock issuable upon conversion of the Notes by the selling
securityholders but we have agreed to pay certain registration
expenses.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Common Stock is
quoted on the Nasdaq National Market under the symbol
&#147;JDSU&#148;. The last reported price of our Common Stock on
December&nbsp;11, 2003 was $3.38 per share.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Investing in the Notes and the shares of Common Stock
issuable upon conversion of the Notes involves substantial
risks. See &#147;Risk Factors&#148; beginning on page&nbsp;6.</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">Neither the Securities and Exchange Commission
nor any state securities commission has approved or disapproved
of these securities or determined if this prospectus is truthful
or complete. Any representation to the contrary is a criminal
offense.</FONT></B>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center">
<FONT size="2">The date of this prospectus is
December&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2003.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>
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<P><HR noshade><P>

<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#000">FORWARD LOOKING STATEMENTS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#001">WHERE YOU CAN FIND MORE INFORMATION</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002">INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003">SUMMARY</A></TD></TR>
<TR><TD colspan="9"><A HREF="#004">RISK FACTORS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#005">RATIO OF EARNINGS TO FIXED CHARGES</A></TD></TR>
<TR><TD colspan="9"><A HREF="#006">USE OF PROCEEDS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#007">SELLING SECURITYHOLDERS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#008">PLAN OF DISTRIBUTION</A></TD></TR>
<TR><TD colspan="9"><A HREF="#009">DESCRIPTION OF NOTES</A></TD></TR>
<TR><TD colspan="9"><A HREF="#010">DESCRIPTION OF CAPITAL STOCK</A></TD></TR>
<TR><TD colspan="9"><A HREF="#011">MATERIAL UNITED STATES FEDERAL TAX CONSIDERATIONS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#012">LEGAL MATTERS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#013">EXPERTS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#014">SIGNATURES</A></TD></TR>
<TR><TD colspan="9"><A HREF="#015">EXHIBIT INDEX</A></TD></TR>
<TR><TD colspan="9"><A HREF="f94556a1exv5w1.txt">EXHIBIT 5.1</A></TD></TR>
<TR><TD colspan="9"><A HREF="f94556a1exv23w1.txt">EXHIBIT 23.1</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">TABLE OF CONTENTS</FONT></B>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="90%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Page</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Forward Looking Statements
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">i</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Where You Can Find More Information
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">ii</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Incorporation of Certain Documents by Reference
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">ii</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Summary
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Risk Factors
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Ratio of Earnings to Fixed Charges
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Use of Proceeds
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">26</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Selling Securityholders
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">26</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Plan of Distribution
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">30</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Description of Notes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Description of Capital Stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">48</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Material United States Federal Tax Considerations
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">52</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Legal Matters
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">59</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Experts
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">59</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Neither we nor the selling securityholders have
authorized any person to give any information or to make any
representation not contained or incorporated by reference in
this prospectus. You must not rely upon any information or
representation not contained or incorporated by reference in
this prospectus as if we had authorized it. This prospectus is
not an offer to sell or the solicitation of an offer to buy any
securities other than the registered securities to which it
relates and this prospectus is not an offer to sell or the
solicitation of an offer to buy securities in any jurisdiction
where, or to any person to whom, it is unlawful to make such
offer or solicitation. You should not assume that the
information contained in this prospectus is correct on any date
after the date of this prospectus, even though this prospectus
is delivered or shares are sold pursuant to this prospectus on a
later date.
</FONT>

<DIV>&nbsp;</DIV>

<!-- link1 "FORWARD LOOKING STATEMENTS" -->
<DIV align="left"><A NAME="000"></A></DIV>

<DIV align="center">
<B><FONT size="2">FORWARD LOOKING STATEMENTS</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This prospectus and the documents incorporated or
deemed to be incorporated by reference herein contain statements
concerning our future results and performance and other matters
that are &#147;forward-looking&#148; statements within the
meaning of Section&nbsp;27A of the Securities Act of 1933, as
amended (the &#147;Securities Act&#148;), and Section&nbsp;21E
of the Securities Exchange Act of 1934, as amended (the
&#147;Exchange Act&#148;). These statements involve known and
unknown risks, uncertainties, and other factors that may cause
our or our industry&#146;s results, levels of activity,
performance or achievements to be materially different from any
future results, levels of activity, performance or achievements
expressed or implied by such forward-looking statements. Such
factors include, among others, those listed under &#147;Risk
Factors&#148; and elsewhere in this prospectus. You can identify
forward-looking statements by terminology such as
&#147;may,&#148; &#147;will,&#148; &#147;should,&#148;
&#147;intend,&#148; &#147;expect,&#148; &#147;plan,&#148;
&#147;anticipate,&#148; &#147;believe,&#148;
&#147;estimate,&#148; &#147;predict,&#148;
&#147;potential,&#148; or &#147;continue&#148; or the negative
of such terms or other comparable terminology. Forward-looking
statements include, among other things, all italicized portions
included under the heading &#147;Risk Factors,&#148; the
information and expectations concerning our future financial
performance and potential or expected growth in our markets and
the markets in which we expect to compete, business strategy,
projected plans and objectives, anticipated cost savings from
restructurings and our estimates with respect to future
operating results, including, without limitation, earnings, cash
flow and revenue. Factors which could cause actual results to
differ materially include those set forth in the risks discussed
below under &#147;Risk Factors&#148; and elsewhere in this
prospectus and the documents incorporated by reference.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Although we believe that the expectations
reflected in the forward-looking statements are reasonable, we
cannot guarantee future results, events, levels of activity,
performance, or achievements. We undertake no obligation to
assume responsibility for the accuracy and completeness of the
forward-looking statements. We do not intend to update any of
the forward-looking statements after the date of this prospectus
to conform them to actual results.
</FONT>

<P align="center"><FONT size="2">i
</FONT>
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<DIV>&nbsp;</DIV>

<!-- link1 "WHERE YOU CAN FIND MORE INFORMATION" -->
<DIV align="left"><A NAME="001"></A></DIV>

<DIV align="center">
<B><FONT size="2">WHERE YOU CAN FIND MORE INFORMATION</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We file annual, quarterly and current reports,
proxy statements and other information with the Securities and
Exchange Commission (the &#147;SEC&#148;). You may read and copy
materials that we have filed with the Securities and Exchange
Commission at the Securities and Exchange Commission public
reference room located at 450&nbsp;Fifth Street, N.W.,
Room&nbsp;1024, Washington,&nbsp;D.C. 20549. Please call the
Securities and Exchange Commission at 1-800-SEC-0330 for further
information on the public reference room. Our Securities and
Exchange Commission filings are also available to the public on
the Securities and Exchange Commission&#146;s Internet website
at http://www.sec.gov. These reports, proxy and information
statements and other information may also be inspected at the
offices of Nasdaq Operations, National Association of Securities
Dealers, Inc., 1735&nbsp;K Street, N.W., Washington,&nbsp;D.C.
20006.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have filed a registration statement on
Form&nbsp;S-3 with the SEC under the Securities Act with respect
to the Notes and the Common Stock issuable upon conversion of
the Notes offered by this prospectus. This prospectus, which
constitutes part of the registration statement, does not contain
all of the information set forth in the registration statement
and its exhibits and schedules. For further information, please
refer to the registration statement and its exhibits and
schedules.
</FONT>

<DIV>&nbsp;</DIV>

<!-- link1 "INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE" -->
<DIV align="left"><A NAME="002"></A></DIV>

<DIV align="center">
<B><FONT size="2">INCORPORATION OF CERTAIN DOCUMENTS BY
REFERENCE</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We incorporate hereby by reference hereto in this
prospectus the following documents filed by us with the SEC:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our Annual Report on Form&nbsp;10-K for the
    fiscal year ended June&nbsp;30, 2003;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our Quarterly Report on Form&nbsp;10-Q for the
    fiscal quarter ended September&nbsp;30, 2003;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our Current Reports on Form&nbsp;8-K filed on
    October&nbsp;28, 2003 and October&nbsp;31, 2003;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the description of our Common Stock contained in
    our registration statement on Form&nbsp;8-A, dated
    November&nbsp;15, 1993, and any other amendment or report filed
    for the purpose of updating such description; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the description of our preferred share purchase
    rights contained in amendment no.&nbsp;5 to our registration
    statement on Form&nbsp;8-A, dated February&nbsp;15, 2003, and
    any other amendment or report filed for the purpose of updating
    such description.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We also incorporate hereby by reference hereto
all documents filed pursuant to Sections&nbsp;13(a), 13(c), 14
or 15(d) of the Exchange Act, after the date of this prospectus
and prior to the termination of this prospectus.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are &#147;incorporating by reference&#148;
certain documents that we file with the SEC, which means that
such documents are considered part of this prospectus and that
we can disclose important information to you by referring to
those documents. Information that we file in the future with the
SEC will automatically update and supersede earlier information
in or incorporated by reference in this prospectus. Any
statement made in a document incorporated or deemed incorporated
in this prospectus by reference is deemed to be modified or
superseded for purposes of this prospectus if a statement
contained in this prospectus or in any other subsequently filed
document, which also is incorporated or deemed incorporated in
this prospectus by reference, modifies or supersedes that
statement. Any such statement so modified or superseded shall
not be deemed, except as so modified or superseded, to
constitute a part of this prospectus.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Statements made in this prospectus, or in any
document incorporated by reference in this prospectus, as to the
contents of any contract or other document referred to in this
prospectus, or in such document incorporated herein, are not
necessarily complete, and in each instance reference is made to
the copy of such contract or other document filed as an exhibit
to the documents incorporated herein; each such statement being
qualified in all material respects by such reference. We will
provide a copy of these filings and any exhibits specifically
incorporated in these filings and a copy of the indenture and
registration rights agreement referred to in this prospectus at
no cost by request directed to us at the following address and
telephone number: JDS Uniphase Corporation, 1768 Automation
Parkway, San Jose, California 95131, Attention: Investor
Relations, or by telephone to Investor Relations at
(415)&nbsp;268-6590.
</FONT>

<P align="center"><FONT size="2">ii
</FONT>

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<!-- link1 "SUMMARY" -->
<DIV align="left"><A NAME="003"></A></DIV>

<P align="center">
<B><FONT size="2">SUMMARY</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">This summary highlights information contained
elsewhere or incorporated by reference in this prospectus. This
is not intended to be a complete description of the matters
covered in this prospectus and is subject to and qualified in
its entirety by reference to the more detailed information and
financial statements (including the notes thereto) included or
incorporated by reference in this prospectus. When we refer to
&#147;we,&#148; &#147;us,&#148; &#147;our,&#148; or &#147;the
Company,&#148; we mean JDS Uniphase Corporation and its
subsidiaries, unless the context indicates otherwise. Unless
otherwise indicated, references to &#147;2003&#148; mean our
fiscal year ending June&nbsp;30, 2003, references to
&#147;2002&#148; mean our fiscal year ended June&nbsp;30, 2002,
references to &#147;2001&#148; mean our fiscal year ended
June&nbsp;30, 2001, references to &#147;2000&#148; mean our
fiscal year ended June&nbsp;30, 2000 and references to
&#147;1999&#148; mean our fiscal year ended June&nbsp;30,
1999.</FONT></I>

<P align="center">
<B><FONT size="2">JDS Uniphase Corporation</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are a worldwide leader in optical technology.
We design and manufacture products for fiberoptic
communications, as well as for markets where our core optics
technologies provide innovative solutions for industrial,
commercial and consumer applications. Our fiberoptic components
and modules are deployed by system manufacturers for the
telecommunications, data communications and cable television
industries. We also offer products through original equipment
manufacturers for display, security, medical/ environmental
instrumentation, decorative, aerospace and defense applications.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Fiberoptic communications systems enable
transmission of video, audio and text data over high-capacity
fiberoptic cables. Although ultimately highly complex, a
fiberoptic communications system performs three basic functions
common to all communications systems: transmitting, routing
(switching)&nbsp;and receiving information, in this case
information encoded on light signals. Our fiberoptic components,
modules and subsystems, alone and in combinations, are the
building blocks for these systems. These products include
transmitters, receivers, amplifiers, dispersion compensators,
multiplexers and demultiplexers, add/ drop modules, switches,
optical performance monitors and couplers, splitters and
circulators. Complementing our components, modules and subsystem
products, our test and measurement equipment is used in
manufacturing, research and development, system development and
network maintenance environments for measuring performance of
optical components. We sell our communications products to the
world&#146;s leading and emerging telecommunications, data
communications and cable television systems providers worldwide.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition to fiberoptic communications, we
apply our optical technologies for use in the display, security,
medical/ environmental, instrumentation, and aerospace and
defense markets. Products of these businesses rely on optical
technologies to control, enhance and modify the behavior of
light utilizing its reflection, absorption and transmission
properties to achieve specific effects such as high
reflectivity, anti-glare and spectral filtering. Specific
product applications include computer monitors and flat panel
displays, projection systems, photocopiers, facsimile machines,
scanners, security products and decorative surface treatments.
We also supply laser products for biotechnology, graphic arts
and imaging, semiconductor processing, materials processing, and
a variety of other laser-based applications.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We group our communications and
non-communications products into two principal segments which we
call the communications products group and the thin film
products group.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Internet address is www.jdsu.com. On our
Investor Relations web site, which is accessible through
www.jdsu.com, we post all Securities and Exchange Commission
filings as soon as reasonably practicable after they are
electronically filed or furnished to the Securities and Exchange
Commission. All such filings on our Investor Relations web site
are available free of charge. The SEC maintains an Internet site
at www.sec.gov that contains reports, proxy and information
statements, and other information regarding issuers that file
electronically with the SEC.
</FONT>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We were incorporated in California in May 1979
and reincorporated in Delaware in October 1993. We are the
product of several significant mergers and acquisitions,
including, among others, the combination of Uniphase Corporation
and JDS FITEL Inc. to form JDS Uniphase Corporation on
June&nbsp;30, 1999, and the
</FONT>

<P align="center"><FONT size="2">1
</FONT>

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<DIV align="left">
<FONT size="2">subsequent acquisitions of Optical Coating
Laboratory, Inc., or OCLI, on February&nbsp;4, 2000, E-TEK
Dynamics, Inc., or E-TEK, on June&nbsp;30, 2000 and SDL, Inc.,
or SDL, on February&nbsp;13, 2001. Our principal executive
offices are located at 1768&nbsp;Automation Parkway, San Jose,
California. Our telephone number at this location is
(408)&nbsp;546-5000.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In fiscal year 2001, we changed our year-end from
a fiscal year ending on June&nbsp;30 to a 52 or 53&nbsp;week
fiscal year ending on the Saturday closest to June&nbsp;30. This
change had no impact on our results of operations, financial
position or cash flows in fiscal year 2001.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our fiscal year 2003 ended on June&nbsp;28, 2003,
whereas fiscal years 2002 and 2001 ended on June&nbsp;29, 2002
and June&nbsp;30, 2001, respectively. For comparative
presentation purposes, all accompanying consolidated financial
statements and notes thereto have been shown as ending on
June&nbsp;30. The first quarters of fiscal year 2004 and 2003
ended on September&nbsp;27, 2003 and September&nbsp;28, 2002,
respectively. For comparative presentation purposes, all
accompanying financial statements and footnotes thereto have
been shown as ending on the last day of the calendar month.
</FONT>

<P align="center"><FONT size="2">2
</FONT>
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<P align="center">
<B><FONT size="2">Terms of the Notes</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="28%"></TD>
    <TD width="1%"></TD>
    <TD width="71%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">Designation and Amount
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">$475,000,000 aggregate principal amount Zero
    Coupon Senior Convertible Notes due 2010.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">Maturity
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">November&nbsp;15, 2010.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">Interest
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">Interest on the Notes is zero unless the Company
    defaults on specified obligations under the registration rights
    agreement. See &#147;Description of Notes&nbsp;&#151;
    Registration Rights of the Noteholders.&#148;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">Conversion
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">A holder of Notes may convert the Notes into
    shares of our Common Stock at a conversion rate of 202.4291
    shares per $1,000 principal amount of Notes, subject to
    adjustment, prior to the close of business on the final maturity
    date under any of the following circumstances:
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">&#149;&nbsp;during any fiscal quarter commencing
    after December&nbsp;31, 2003, if the closing sale price of our
    Common Stock exceeds 110% of the conversion price for at least
    20 trading days in the 30 consecutive trading days ending on the
    last trading day of the preceding fiscal quarter;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">&#149;&nbsp;after November&nbsp;15, 2008 until
    maturity, on any date on which the closing sale price of our
    Common Stock exceeds 110% of the conversion price, and at all
    times thereafter;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">&#149;&nbsp;during the five business day period
    after any five consecutive trading day period in which the
    trading price per Note for each day of such period was less than
    98% of the product of the closing sale price of our Common Stock
    and the number of shares issuable upon conversion of $1,000
    principal amount of the Notes; provided that you will receive an
    amount of cash or Common Stock, or any combination thereof,
    equal to the principal amount of Notes being converted pursuant
    to this contingency if the closing sale price of our Common
    Stock exceeds the conversion price;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">&#149;&nbsp;if we call the Notes for redemption;
    or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">&#149;&nbsp;upon the occurrence of specified
    corporate events described under &#147;Description of
    Notes.&#148;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">Upon conversion, we have a right to deliver cash,
    or a combination of cash and shares of Common Stock, in lieu of
    shares of our Common Stock. See &#147;Description of
    Notes&nbsp;&#151; Payment Upon Conversion.&#148;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">Redemption
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">We may redeem any of the Notes beginning
    November&nbsp;15, 2008 by giving a holder of Notes at least
    30&nbsp;days&#146; notice. We may redeem the Notes either in
    whole or in part at a redemption price equal to 100% of the
    principal amount of the Notes, plus accrued and unpaid
    additional interest, if any, resulting from a default under the
    registration rights agreement.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">Designated Event
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">If a designated event, as described under
    &#147;Description of Notes&nbsp;&#151; Repurchase at Option of
    the Holder Upon a Designated Event,&#148; occurs prior to
    maturity, a holder of Notes may require us to repurchase all or
    part of such Notes at a repurchase price equal to
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">3
</FONT>

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<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="28%"></TD>
    <TD width="1%"></TD>
    <TD width="71%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">100% of the principal amount of the Notes plus
    accrued and unpaid additional interest, if any, resulting from a
    default under the registration rights agreement. We may choose
    to pay the repurchase price in cash, shares of our Common Stock
    or, if applicable, of the surviving corporation&#146;s common
    stock or a combination thereof. See &#147;Description of
    Notes&nbsp;&#151; Registration Rights of the Noteholders.&#148;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">Repurchase at the Option of the Holder
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">A holder of Notes may require us to repurchase
    the Notes, in whole or in part, on November&nbsp;15, 2008 for a
    repurchase price equal to 100% of the principal amount of the
    Notes plus additional interest, if any.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">Sinking Fund
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">None.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">Senior Notes
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">The Notes are our senior unsecured debt and will
    rank on a parity with all of our existing and future unsecured
    debt and prior to all subordinated debt. The indenture does not
    restrict our ability to incur additional indebtedness. See
    &#147;Description of Notes&nbsp;&#151; Subordination.&#148;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">Use of Proceeds
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">We will not receive any proceeds from the resale
    of the Notes and the shares of our Common Stock issuable upon
    conversion of the Notes by the selling securityholders.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">Registration Rights
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">We have agreed to file a shelf registration
    statement, of which this prospectus is a part, with the SEC
    covering the resale of the Notes and the underlying Common
    Stock. We also agree to use commercially reasonable efforts to
    keep the shelf registration statement effective until one of the
    following has occurred:
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">&#149;&nbsp;all securities covered by the
    registration statement have been sold pursuant to the shelf
    registration statement or Rule&nbsp;144;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">&#149;&nbsp;the expiration of the applicable
    holding period with respect to the Notes and the underlying
    Common Stock under Rule&nbsp;144(k) under the Securities Act or
    any successor provision; or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">&#149;&nbsp;the Notes and the underlying Common
    Stock have ceased to be outstanding (whether as result of
    repurchase and cancellation, conversion or otherwise).
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">Trading
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">We do not intend to list the Notes on any
    national securities exchange. As of October&nbsp;31, 2003, the
    Notes were eligible for trading on the PORTAL market. Our Common
    Stock is quoted on the Nasdaq National Market under the symbol
    &#147;JDSU.&#148;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">Absence of a Public Market
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">The Notes are securities for which there is
    currently no public market. An active or liquid market may not
    develop for the Notes. See &#147;Plan of Distribution.&#148;
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">4
</FONT>
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<DIV>&nbsp;</DIV>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="28%"></TD>
    <TD width="1%"></TD>
    <TD width="71%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">Ranking
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">The Notes are general unsecured obligations of
    the Company. The Notes are also effectively subordinated to the
    existing and future indebtedness and other liabilities,
    including trade payables, of our subsidiaries. As of
    September&nbsp;30, 2003, our subsidiaries had outstanding
    indebtedness of approximately $6.0&nbsp;million, other than
    intercompany indebtedness and trade payables. We and our
    subsidiaries are not prohibited from incurring senior
    indebtedness or other debt under the indenture.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">5
</FONT>
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<!-- link1 "RISK FACTORS" -->
<DIV align="left"><A NAME="004"></A></DIV>

<P align="center">
<B><FONT size="2">RISK FACTORS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">You should carefully consider the risks
described below before making an investment decision. The risks
described below are not the only ones facing our company.
Additional risks not presently known to us or that we currently
deem immaterial may also impair our business
operations.</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Our business, financial condition or results
of operations could be materially adversely affected by any of
these risks. The trading price of the Notes and our Common Stock
could decline due to any of these risks, and you may lose all or
part of your investment.</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">This prospectus also contains forward-looking
statements that involve risks and uncertainties. Our actual
results could differ materially from those anticipated in these
forward-looking statements as a result of certain factors,
including the risks faced by us described below and elsewhere in
this prospectus.</FONT></I>

<P align="left">
<B><FONT size="2">Risks Related to Our Business</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">The continuing unstable economic
    environment has significantly harmed and may continue to
    significantly harm our industries.</FONT></I></B></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Our revenue levels are unstable, we are not
    currently profitable, and we have difficulty predicting future
    operating results.</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As a result of continuing unfavorable economic
and market conditions, particularly in the communications sector
(but also in our non-communications business), our revenues have
declined significantly from historic levels, we are not
currently profitable, and we are unable to predict future sales
accurately or to provide long-term guidance for future financial
performance. Historically, our communications business was the
more affected business; however, recently, these unfavorable
conditions are increasingly impacting our non-communications
businesses. The conditions contributing to this difficulty
include:
</FONT>
<P>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">uncertainty regarding the capital spending plans
    of the major telecommunications carriers, upon which our
    telecommunications systems manufacturing customers, and
    ultimately we, depend for a substantial amount of our sales;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the weakened financial condition of many major
    telecommunications carriers and their current limited access to
    the capital required for expansion;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">continued reduction in inventory levels by our
    telecommunications systems manufacturing customers;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">limited visibility regarding the long-term demand
    for high content, high speed, broadband telecommunications
    networks;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">excess fiber and channel capacity, particularly
    in the long-haul market, which historically has been responsible
    for a major portion of our communications sales and profits;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">uncertainty regarding the growth and
    profitability of the security display and commercial laser
    markets, which are responsible for a substantial portion of our
    non-communications sales and profits; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">general market and economic uncertainty.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Based on these and other factors, many of our
major customers have reduced, modified, cancelled or rescheduled
orders for our products and have expressed uncertainty as to
their future requirements. In the communications business, this
uncertainty is reflected in the limited and highly variable
forecasts our customers are providing of their anticipated needs
for our communications products. <I>As a result, our revenues in
the future are likely to fluctuate and may, in fact, decline,
and we anticipate that we will continue to be unprofitable in
the near future. </I>In addition, due to our current limited
ability to provide long-term guidance for our operating results,
our ability to meet financial expectations for future periods
may be harmed.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Our customers&#146; businesses have been
    harmed by the economic downturn.</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our communications business is largely dependent
upon product sales to telecommunications systems manufacturers
who in turn are dependent for their business upon sales of
fiberoptic systems to telecommunica-
</FONT>

<P align="center"><FONT size="2">6
</FONT>

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<DIV align="left">
<FONT size="2">tions carriers. All of our systems manufacturing
customers and their carrier customers have experienced severe
business declines during the current downturn. Many of these
companies are currently operating at losses and are unable to
make meaningful long-term predictions for their recovery, and
hence their forecasted requirements for optical
telecommunications systems. This continuing uncertainty means
that, as a supplier of the components and modules for these
systems, our ability to predict our financial results or
business prospects for future periods is severely limited.
</FONT>
</DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Our Global Realignment Program may be
    unsuccessful in aligning our operations to current market
    conditions.</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In response to the economic slowdown and as part
of our continuing integration efforts, we commenced a Global
Realignment Program in April 2001, under which we are, among
other things:
</FONT>
<P>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">eliminating some product development programs and
    consolidating or curtailing others in order to focus our
    research and development investments on the most promising
    projects;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">consolidating our manufacturing facilities from
    multiple sites into single locations, as well as consolidating
    sales and administrative functions; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">aligning our sales organization to offer
    customers a single point of contact for all of their product
    requirements, and creating regional and technical centers to
    streamline customer interaction with product line managers.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Implementation of the Global Realignment Program
involves major reductions in our workforce and facilities and,
in certain instances, the relocation of products, technologies
and personnel. <I>We have incurred and will continue to incur
significant costs (including cash expenditures) to implement the
Global Realignment Program and we expect to realize significant
future cost reductions as a result. </I>The Global Realignment
Program may not be successful in achieving the expected cost
reductions or other benefits, may be insufficient to align our
operations with customer demand and the changes affecting our
industry, or may be more costly or extensive than currently
anticipated. Even if the Global Realignment Program is
successful and meets our current cost reduction goals, our sales
must increase substantially in the future for us to be
profitable.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Our cost reduction programs may be
    insufficient to achieve long-term profitability.</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are undertaking cost reduction measures, under
and in addition to the Global Realignment Program, intended to
reduce our expense structure at both the cost of goods sold and
the operating expense levels. We believe these measures are a
necessary response to, among other things, declining average
sales prices across our product lines. These measures may be
unsuccessful in creating profit margins sufficient to sustain
our current operating structure and business.
</FONT>

<DIV>&nbsp;</DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">We have incurred, and may in the future incur,
    inventory-related charges, the amounts of which are difficult to
    predict accurately.</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As a result of the business downturn and
declining demand for our products, we have written down a
substantial portion of our inventory as our revenue forecasts
continued to decline. We generally use a rolling six-month
forecast based on anticipated product orders, product order
history, forecasts and backlog to assess our inventory
requirements. However, as discussed above, our ability to
forecast our customers&#146; needs for our products in the
current economic environment is very limited. Consequently, we
have incurred, and may in the future incur, charges to write
down our inventory. We recorded charges of $56.1&nbsp;million
and $203.9&nbsp;million related to excess and obsolete inventory
during fiscal 2003 and 2002, respectively. We may incur such
inventory write-downs in future periods. Moreover, because of
our current difficulty in forecasting overall revenue, we may in
the future revise our previous forecasts, which could lead to
further inventory write-downs. While we believe, based on
current information, that the amount recorded for inventory is
properly reflected on our balance sheet at September&nbsp;30,
2003, if market conditions are less favorable than our
forecasts, our
</FONT>

<P align="center"><FONT size="2">7
</FONT>
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<DIV align="left">
<FONT size="2">future revenue mix differs from our forecasted
revenue mix, or actual demand from our customers is lower than
our estimates, we may be required to record additional inventory
write-downs.
</FONT>
</DIV>

<DIV>&nbsp;</DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Any failure of our major telecommunications
    systems manufacturing customers, or their telecommunications
    carrier customers, to service their debt would materially harm
    our business.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During the rapid growth in the telecommunications
sector in the mid-to-late 1990s, telecommunications systems
manufacturers and their telecommunications carrier customers
incurred large amounts of debt in order to finance the expansion
that was then forecasted. In the rapid downturn that followed,
both capital spending and revenue declined, but debt remained
and in some instances increased. As a result, several of the
telecommunications carriers and, in turn their suppliers, our
telecommunications systems manufacturing customers, continue to
have significant amounts of outstanding debt. The servicing of
this debt may, among other things, limit the carriers&#146;
ability to buy new capital equipment and, thus, the demand for
telecommunications systems. In fact, several carriers (WorldCom
and Global Crossing, among others) have declared bankruptcy over
the past two years, or are otherwise in financial distress.
<I>We anticipate that some or all of these companies will need
to repay or restructure significant portions of their debt in
the future. </I>Any failure in this task could materially harm
their businesses, and consequently ours. As long as these
companies are focused on debt concerns, they are less likely to
acquire telecommunications systems.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">If our customers fail to meet their financial
    obligations to us, our business will suffer.</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Although we perform ongoing credit evaluations of
our customers and manage and monitor balances owed us, we are
not able to predict changes in their financial condition,
particularly during the current economic environment. Based on
our estimates as to the quality of our accounts receivable, we
maintain allowances for doubtful accounts for estimated losses
resulting from the inability or unwillingness of our customers
to make required payments. However, if our customers are unable
to meet their financial obligations to us as a result of
bankruptcy or deterioration in their operating results or
financial condition, our trade receivables may not be
recoverable and, in addition to not receiving the amounts owed,
we may be required to record additional bad debt expenses, which
could materially affect our financial condition and operating
results.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Moreover, the continuing economic slowdown has
exacerbated our vulnerability to demand fluctuations for our
communications products. Specifically, we have experienced and
remain vulnerable to material order cancellations, modifications
and reschedulings, all of which, among other things, reduce our
sales and impair our ability to achieve financial targets and
predict financial results for future periods.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">We depend on recovery and long-term growth
    in our markets for our success.</FONT></I></B></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">If the Internet does not continue to grow as
    expected, our business will suffer.</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our future success as a manufacturer of optical
components, modules and subsystems ultimately depends on the
continued growth of the communications industry, and, in
particular, the growth of the Internet as a global
communications system. As part of that growth, we are relying on
increasing demand for high-content voice, text and other data
delivered over high-speed connections (i.e., high bandwidth
communications). As Internet usage and bandwidth demand
increase, so does the need for advanced optical networks to
provide the required bandwidth. Without Internet and bandwidth
growth, the need for our advanced communications products, and
hence our future growth as a manufacturer of these products, is
jeopardized. Currently, while generally increasing demand for
Internet access is apparent, less evident is when order capacity
will be absorbed. Moreover, multiple service providers compete
to supply the existing demand. Also, currently, fiberoptic
networks have significant excess capacity. The combination of a
large number of service providers and excess network capacity
has resulted in severely depressed prices for bandwidth. Until
pricing recovers, service providers have less incentive to
install equipment and, thus, little need for many of our
communications products. Ultimately, should long-term
expectations for Internet growth and bandwidth demand not be
realized, our business would be significantly harmed.
</FONT>

<P align="center"><FONT size="2">8
</FONT>

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<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">We depend on stability or growth in the
    markets for our products outside communications for growth in
    the revenue of this group of products.</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The growth of our display products, light
interference pigment and other businesses served out of our thin
film products group, depends significantly on the continued
stability or growth and success of these markets. Among other
things, advances in the technology used in computer monitors,
televisions, conference room projectors and other display
devices have led to increased demand for flat panel displays and
projection displays. We cannot be certain that growth in these
markets will continue. In recent periods, we have experienced
reduced demand for some of our non-communications products,
particularly our display components sold to Texas Instruments.
<I>We expect this reduced demand to continue for the near term.
</I>Among other things, we are working to develop additional
profitable applications for our interference pigments and
display components and modules. If we fail, these businesses
will suffer. Moreover, we cannot predict the impact of
technological or other changes in these industries on our
business. In addition, each of our non-communications products
is subject to pricing pressure, consolidation and realignment as
industry participants react to shifting customer requirements
and overall demand. There is a risk that any consolidation or
realignment could adversely affect our business, and pricing
pressure can adversely affect our operating results.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Our business and financial condition could
    be harmed by our long-term growth strategy.</FONT></I></B></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">If we fail to manage or anticipate our
    long-term growth, our business will suffer.</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Notwithstanding the recent decline, the optical
businesses as well as the businesses that we serve out of the
thin film products group have historically grown, at times
rapidly, and we have grown accordingly. <I>We have made and,
although we remain in an industry slowdown, expect in the future
to make significant investments to enable our future growth
through, among other things, internal expansion programs,
product development, acquisitions and other strategic
relationships. </I>If we fail to manage or anticipate our future
growth effectively, particularly during periods of industry
decline, our business will suffer. Through our Global
Realignment Program and other cost reductions measures we are
balancing the need to shrink our operations consistent with the
current economic conditions with the need to preserve our
ability to grow and scale our operations when our markets
recover. If we fail to achieve this balance, our business will
suffer to the extent our resources and operations are
insufficient to respond to a return to growth.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">If we fail to commercialize new product lines,
    our business will suffer.</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We intend to continue to develop new product
lines and improve existing ones to meet our customers&#146;
diverse and changing needs. New product development activities
are expensive, with no guarantee of success. Risks associated
with our development of new products and improvements to
existing products include the risk that:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">we may fail to complete the development of a new
    or improved product;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our customers may not purchase the new or
    improved product because, among other things, the product is too
    expensive, is defective in design, manufacture or performance,
    is uncompetitive, or because the product has been superceded by
    another product or technology; or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">we may fail to anticipate or respond to new
    technologies that could have a disruptive impact on our business.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Nonetheless, if we fail to successfully develop
and introduce new products and improve existing ones, our
business will suffer. We have considerably reduced our research
and development spending from historic levels and some of our
competitors now spend considerably higher percentages of their
revenues on research and development than do we.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Furthermore, new products require increased sales
and marketing, customer support and administrative effort to
support anticipated increased levels of operations. We may not
be successful in creating this infrastructure, or we may not
realize increased sales sufficient to offset the additional
expenses resulting from this increased infrastructure. In
connection with our many acquisitions, we have incurred expenses
in
</FONT>

<P align="center"><FONT size="2">9
</FONT>

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<DIV align="left">
<FONT size="2">anticipation of developing and selling new
products. Our operations may not achieve levels sufficient to
justify the increased expense levels associated with these new
businesses.
</FONT>
</DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Changes in accounting rules have had and
    may continue to have a material effect on our financial
    results.</FONT></I></B></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Our financial results could be affected by
    potential changes in the accounting rules governing the
    recognition of stock-based compensation expense.</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We measure compensation expense for our employee
stock compensation plans under the intrinsic value method of
accounting prescribed by APB&nbsp;Opinion No.&nbsp;25,
&#147;Accounting for Stock Issued to Employees.&#148; Under this
method, we recognized compensation charges related to stock
compensation plans of $1.2&nbsp;million, $50.9&nbsp;million,
$124.9&nbsp;million and $52.6&nbsp;million in the first quarter
of fiscal year 2004 and in fiscal 2003, 2002 and 2001,
respectively. In accordance with SFAS No.&nbsp;123,
&#147;Accounting for Stock-Based Compensation,&#148; we provide
disclosures of our operating results as if we had applied the
fair value method of accounting. Beginning in the third quarter
of fiscal 2003, we provide such disclosures in our Quarterly
Reports on Form&nbsp;10-Q in accordance with SFAS No.&nbsp;148,
&#147;Accounting for Stock-Based Compensation&nbsp;&#151;
Transition and Disclosure.&#148; Had we accounted for our
compensation expense under the fair value method of accounting
prescribed by SFAS No.&nbsp;123, the charges would have been
significantly higher than the intrinsic value method used by us,
totaling $72.1&nbsp;million, $685.2&nbsp;million,
$688.9&nbsp;million and $566.2&nbsp;million during the first
quarter of fiscal year 2004 and during fiscal 2003, 2002 and
2001, respectively. Currently, the FASB is considering changes
to accounting rules concerning the recognition of stock option
compensation expense. If these proposals are implemented, we and
other companies may be required to measure compensation expense
using the fair value method, which would adversely affect our
results of operations by increasing our losses by the additional
amount of such stock option charges.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Implementation of FIN 46 could affect our
    financial results</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In January 2003, the FASB issued Interpretation
No.&nbsp;46, &#147;Consolidation of Variable Interest Entities,
an Interpretation of ARB No.&nbsp;51,&#148; which was amended in
October 2003. FIN 46 requires an investor who receives the
majority of the expected losses, the expected residual returns,
or both, (primary beneficiary) of a variable interest entity
(&#147;VIE&#148;) to consolidate the assets, liabilities and
results of operations of the entity. A variable interest entity
is an entity in which the equity investors do not have a
controlling interest or the equity investment at risk is
insufficient to finance the entity&#146;s activities without
receiving additional subordinated financial support from other
parties. FIN 46, as amended, is applicable: (i)&nbsp;immediately
for all variable interest entities created after
January&nbsp;31, 2003; or (ii)&nbsp;in the first fiscal year or
interim period ending after December&nbsp;15, 2003 for those
created before February&nbsp;1, 2003, so long as we have not
issued financial statements reporting that VIE in accordance
with FIN&nbsp;46, other than the disclosures required by
paragraph&nbsp;26 of FIN&nbsp;46. During the first quarter of
fiscal 2004, we adopted the provisions of FIN&nbsp;46 with
respect to a synthetic lease agreement pertaining to two
separate properties and recognized a non-cash cumulative effect
of an accounting change adjustment of $2.9&nbsp;million and
deferred impairment charge of $5&nbsp;million.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company is currently reviewing its cost and
equity method investments and other variable interests acquired
prior to February&nbsp;1, 2003 to determine whether those
entities are variable interest entities and, if so, if the
Company is the primary beneficiary of any of its investee
companies. At September&nbsp;30, 2003, the Company had 24 cost
and equity method investments primarily in privately held
companies and venture funds that have the potential to provide
strategic technologies and relationships to the Company&#146;s
businesses. <I>The Company expects to complete the review during
the second quarter of fiscal 2004. </I>Provided the Company is
not the primary beneficiary, the Company&#146;s maximum exposure
to loss for these investments at September&nbsp;30, 2003 is
limited to the carrying amount of its investment of
$37.8&nbsp;million in such entities and its minimum funding
commitments of $20.6&nbsp;million. The consolidation of any
investee companies under Interpretation No.&nbsp;46 could
adversely affect the financial position and results of
operations of the Company.
</FONT>

<P align="center"><FONT size="2">10
</FONT>
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<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Our total net revenue is dependent upon a
    few key customers.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A few large customers account for most of our
total net revenue. During fiscal 2003, Texas Instruments
accounted for 12% of our total net revenue. During fiscal 2002,
no customer accounted for more than 10% of our total net
revenue. During fiscal 2001, Nortel, Alcatel and Lucent
accounted for 14%, 12% and 10% of our total net revenue,
respectively. <I>We expect that, for the foreseeable future,
sales to a limited number of customers will continue to account,
alone or in the aggregate, for a high percentage of our total
net revenue. </I>Dependence on a limited number of customers
exposes us to the risk that order reductions from any one
customer can have a material adverse effect on periodic revenue.
In fiscal 2003, we experienced a dramatic decline in our sales
to Texas Instruments, from $23.5&nbsp;million (15% of quarterly
revenue) in the second quarter of the year to $14.4&nbsp;million
(less than 10% of quarterly revenue) in the fourth quarter of
the year. Moreover, many of our customers are currently
experiencing significant revenue declines and, in recent
periods, have significantly reduced their orders from us. If
such reductions continue, our business will continue to be
harmed.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Any failure to remain competitive would
    harm our operating results.</FONT></I></B></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">If we are not competitive, our operating
    results could suffer.</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The markets in which we sell our products are
highly competitive and characterized by rapidly changing and
converging technologies. We face intense competition from
established competitors and the threat of future competition
from new and emerging companies in all aspects of our business.
Among our current competitors are some of our customers, who are
vertically integrated and either manufacture and/or are capable
of manufacturing some or all of the products we sell to them. In
addition to our current competitors, we expect that new
competitors providing niche, and potentially broad, product
solutions will increase in the future. While the current
economic downturn has reduced the overall level of business in
our industries, the competition remains fierce. To remain
competitive in both the current and future business climates, we
believe we must maintain a substantial commitment to research
and development, improve the efficiency of our manufacturing
operations, and streamline our marketing and sales efforts, as
well as customer service and support. Under our Global
Realignment Program, we have ongoing initiatives in each of
these areas. However, our efforts to remain competitive as we
continue to implement our Global Realignment Program may be
unsuccessful. Among other things, we may not have sufficient
resources to continue to make the investments necessary to
remain competitive, or we may not make the technological
advances necessary to remain competitive. In addition,
notwithstanding our efforts, technological changes,
manufacturing efficiencies or development efforts by our
competitors may render our products or technologies obsolete or
uncompetitive.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the telecommunications industry, our
telecommunications systems manufacturing customers evaluate our
products and competitive products for deployment in their
telecommunications systems. Similarly, telecommunications
carrier customers evaluate our customers&#146; system products
and competitive products for system installation. Any failure of
us to be selected by our customers, or our customers to be
selected by their customers, can significantly harm our business.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The businesses we serve through our thin film
products group (e.g., display, medical/environmental
instrumentation, document security, product security, aerospace
and defense, and lasers) are also susceptible to changing
technologies and competition. Growth in the demand for our
products within these markets will depend upon our ability to
compete with providers of lower cost, higher performance
products by developing more cost-effective processes and
improving our products. Currently, we are working to develop new
products for use in the commercial laser and flat panel display
markets, markets with significant existing and developing
competition. Our success or failure in these efforts will have a
material impact on our non-communications business. In the
security market, we face competition from alternative
anti-counterfeiting devices such as holograms, embedded threads
and watermarks.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">The telecommunications industry is
    consolidating.</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The telecommunications industry is consolidating
and we believe it will continue to consolidate in the future as
companies attempt to strengthen or hold their market positions
in an evolving industry. The recent
</FONT>

<P align="center"><FONT size="2">11
</FONT>

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<DIV align="left">
<FONT size="2">consolidations of Bookham and Nortel
Network&#146;s optical components business and of Avanex and
Corning&#146;s and Alcatel&#146;s respective optical components
businesses are recent examples of high profile consolidations.
We anticipate that consolidation will continue as a result of
the current industry downturn. In addition, industry
consolidation may result in stronger competitors who are able to
compete better as sole-source vendors for customers. This could
harm our business as we compete to be a single-vendor solution.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We also expect consolidation to occur among our
telecommunications systems manufacturing customers and their
telecommunications carrier customers. Consolidation at either
level could result in, among other things, greater negotiating
power for the consolidated companies with their suppliers in
response to reduced competition, and reduced overall demand for
telecommunications systems as the number of companies installing
systems or providing services declines. Any of these results
could reduce demand for our telecommunications products and
increase pressure to reduce our prices and provide other
incentives.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Average selling prices are
    declining.</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Prices for telecommunications fiberoptic products
generally decline over time as new and more efficient components
and modules with increased functionality are developed,
manufacturing processes improve and competition increases. The
current economic environment has exacerbated the general trend,
as declining revenues have forced telecommunications carriers
and their suppliers to reduce costs, leading to increasing
pricing pressure on our competitors and us. Weakened demand for
optical components and modules has created an oversupply of
these products, which has increased pressure on us to reduce our
prices. <I>To the extent this oversupply is not resolved in
future periods, we anticipate continuing pricing pressure</I>.
Moreover, currently, fiberoptic networks have significant excess
capacity. Industry participants disagree as to the amount of
this excess capacity. <I>However, to the extent that there is
significant overcapacity and this capacity is not profitably
utilized in future periods, we expect to face additional
pressure to reduce our prices</I>. Also, numerous
telecommunications carriers (WorldCom and Global Crossing, among
others) have declared bankruptcy over the past two years or are
otherwise in financial distress. As carriers are eliminated from
the marketplace, through bankruptcy or consolidation, system
vendors lose customers, while remaining carriers are able to
increase price pressures on system vendors since vendors have
fewer customer alternatives. System vendors in turn will apply
those pressures on us.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are also experiencing pricing pressure in the
businesses we serve through our thin film products group (e.g.,
display, medical/environmental instrumentation, document
security, product security, aerospace and defense, and lasers),
as a result of improved internal sourcing capabilities within
some of our customers, declining demand for some of our products
and increased competition.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In response to declining average sales prices, we
are undertaking cost reduction measures, under and in addition
to the Global Realignment Program, intended to reduce our
expense structure at both the cost of goods sold and the
operating expense levels. These measures may be unsuccessful in
creating profit margins sufficient to sustain our current
operating structure and business. In addition to direct cost
cutting, we must continue to: (i)&nbsp;timely develop and
introduce new products that incorporate features that enable
such products to be less price sensitive, and (ii)&nbsp;increase
the efficiency of our manufacturing operations. Failure to do so
could cause our revenues and profit margins to further decline,
which would harm our business.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">If we fail to attract and retain key
    personnel, our business could suffer.</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our future depends, in part, on our ability to
attract and retain key personnel. Competition for highly skilled
technical people is extremely intense, and, the current economic
environment notwithstanding, we continue to face difficulty
identifying and hiring qualified engineers in many areas of our
business. We may not be able to hire and retain such personnel
at compensation levels consistent with our existing compensation
and salary structure. Our future also depends on the continued
contributions of our executive management team and other key
management and technical personnel, each of whom would be
difficult to replace. The loss of services of these or other
executive officers or key personnel or the inability to continue
to attract qualified personnel could have a material adverse
effect on our business.
</FONT>

<P align="center"><FONT size="2">12
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As a consequence of the current economic
environment and as part of our Global Realignment Program, we
have reduced our global workforce to 5,194 employees as of
September&nbsp;30, 2003. We cannot predict the impact our recent
workforce reductions and any other reductions we are compelled
to make in the future will have on our ability to attract and
retain key personnel.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Similar to other technology companies,
particularly those located in Silicon Valley, we rely upon our
ability to use stock options and other forms of equity-based
compensation as key components of our executive and employee
compensation structure. Historically, these components have been
critical to our ability to retain important personnel and offer
competitive compensation packages. Without these components, we
would be required to significantly increase cash compensation
levels (or develop alternative compensation structures) in order
to retain our key employees, particularly as and when an
industry recovery returns. Recent proposals to modify accounting
rules relating to the expensing of equity compensation may cause
us to substantially reduce, or even eliminate, all or portions
of our equity compensation programs.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">We have concerns regarding the
    manufacturing, quality and distribution of our
    products.</FONT></I></B></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">If we do not achieve acceptable manufacturing
    volumes, yields and costs, our business will suffer.</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our success depends upon our ability to timely
deliver products to our customers at acceptable volume and cost
levels. The manufacture of our products involves highly complex
and precise processes, requiring production in highly controlled
and clean environments. Changes to our manufacturing processes
or those of our suppliers, or the inadvertent use of defective
or contaminated materials by our suppliers or us, could
significantly hurt our ability to meet our customers&#146;
product volume and quality needs. Moreover, in some cases,
existing manufacturing techniques, which involve substantial
manual labor, may not achieve the volume or cost targets
necessary to be competitive. In these cases, we will need to
develop new manufacturing processes and techniques, which are
anticipated to involve higher levels of automation, to achieve
these targets, and we will need to undertake other efforts to
reduce manufacturing costs. Currently, we are devoting
significant funds and other resources to: (i)&nbsp;develop
advanced manufacturing techniques to improve product volumes and
yields and reduce costs, and (ii)&nbsp;realign some of our
product manufacturing facilities to locations offering optimal
labor costs. These efforts may not be successful. If we fail to
achieve acceptable manufacturing yields, volumes and costs, our
business will be harmed.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">If our customers do not qualify our
    manufacturing lines for volume shipments, our operating results
    could suffer.</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Customers will not purchase any of our products,
other than limited numbers of evaluation units, prior to
qualification of the manufacturing lines for the products. Each
new manufacturing line must go through rigorous qualification
with our customers. The qualification process can be lengthy and
is expensive, with no guarantee that any particular product
qualification process will lead to profitable product sales.
Moreover, we are currently consolidating our worldwide
manufacturing operations into centralized locations, such as our
facilities in Shenzhen, China. Among other things, we are moving
the manufacturing of some of our products to other facilities.
We expect that consolidation and product relocations may
continue for the foreseeable future. The manufacturing lines for
relocated products must undergo qualification before commercial
shipment of these products can recommence. The qualification
process, whether for new products or in connection with the
relocation of manufacturing of current products, determines
whether the manufacturing line achieves the customers&#146;
quality, performance and reliability standards. Our expectations
as to the time periods required to qualify (or requalify) a
product line and ship products in volumes to customers may be
erroneous. Delays in qualification can cause a product to be
dropped from a long-term supply program. These delays will also
impair the expected timing, and may impair the expected amount,
of sales of the affected products. Nevertheless, we may, in
fact, experience delays in obtaining qualification of our
manufacturing lines and, as a consequence, our operating results
and customer relationships would be harmed.
</FONT>

<P align="center"><FONT size="2">13
</FONT>

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<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">If our products fail to perform, our business
    will suffer.</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our business depends on manufacturing excellent
products of consistently high quality. Our products are highly
complex and, as such susceptible to design and manufacturing
defects. To guard against this, our products are rigorously
tested for quality both by our customers and us. Nevertheless,
our customers&#146; testing procedures are limited to evaluating
our products under likely and foreseeable failure scenarios. For
various reasons (including, among others, the occurrence of
performance problems that are unforeseeable in testing or that
are detected only when products are fully deployed and operated
under peak stress conditions), our products may fail to perform
as expected. Failures could result from faulty design or
problems in manufacturing. In either case, we could incur
significant costs to repair and/or replace defective products
under warranty, particularly when such failures occur in
installed systems. We have experienced such failures in the past
and remain exposed to such failures, as our products are widely
deployed throughout the world in multiple demanding environments
and applications. In some cases, product redesigns or additional
capital equipment may be required to correct a defect. We have
in the past increased our warranty reserves and have incurred
significant expenses relating to certain communications
products. Any significant product failure could result in lost
future sales of the affected product and other products, as well
as customer relations&#146; problems, litigation and damage to
our reputation.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Certain of our non-telecommunications products
    are subject to governmental and industry regulations,
    certifications and approvals.</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The commercialization of certain of the products
we design, manufacture and distribute through our thin film
products group may be delayed or made more costly due to
required government and industry approval processes. Development
of applications for our light interference pigment products may
require significant testing that could delay our sales. For
example, certain uses in cosmetics may be regulated by the Food
and Drug Administration, which has extensive and lengthy
approval processes. Durability testing by the automobile
industry of our pigments used with automotive paints can take up
to three years. If we change a product for any reason including
technological changes or changes in the manufacturing process,
prior approvals or certifications may be invalid and we may need
to go through the approval process again. If we are unable to
obtain these or other government or industry certifications in a
timely manner, or at all, our operating results could be
adversely affected.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">We may not be able to enter into necessary
    strategic alliances to effectively commercialize our
    products.</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We often rely on strategic alliances with other
companies to commercialize some of our products in a timely or
effective manner, primarily in our non-telecommunication
businesses. Our current strategic alliance partners provide us
with assistance in the marketing, sales and distribution of a
diverse line of products. We may be unable to find appropriate
strategic alliances in markets in which we have little
experience, which could prevent us from bringing our products to
market in a timely manner, or at all. For instance, we have a
strategic alliance with SICPA, one of our major customers in the
thin film products group, for the marketing and sale of our
light interference pigments used to provide security features in
currency. Under a license and supply agreement, we rely
exclusively on SICPA to market and sell to this market
worldwide. SICPA has the right to terminate the agreement if we
breach it. If SICPA terminates our agreement or if it is unable
to market and sell our light interference pigments successfully
for the applications covered by the agreement, our business may
be harmed and we may be unable to find a substitute marketing
and sales partner or develop these capabilities ourselves. Also,
if SICPA fails to meet its minimum purchase requirements under
the agreement for any reason, our operating results would be
adversely affected.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">If our contract manufacturers fail to deliver
    quality products at reasonable prices and on a timely basis, our
    results of operations and financial conditions could be
    harmed.</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are increasing our use of contract
manufacturers as an alternative to our own manufacturing of
products. If these contract manufacturers do not fulfill their
obligations to us, or if we do not properly manage these
relationships and the transition of production to these contract
manufacturers, our existing customer relationships may suffer.
In addition, by undertaking these activities, we run the risk
that the reputation and
</FONT>

<P align="center"><FONT size="2">14
</FONT>

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<DIV align="left">
<FONT size="2">competitiveness of our products and services may
deteriorate as a result of the reduction of our control over
quality and delivery schedules. We also may experience supply
interruptions, cost escalations and competitive disadvantages if
our contract manufacturers fail to develop, implement or
maintain manufacturing methods appropriate for our products and
customers.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our supply chain and manufacturing process relies
on accurate forecasting to provide us with optimal margins and
profitability. Because of market uncertainties, forecasting is
becoming much more difficult. In addition, as we come to rely
more heavily on contract manufacturers, we may have fewer
personnel resources with expertise to manage these third-party
arrangements.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Interruptions affecting our key suppliers
    could disrupt production, compromise our product quality and
    adversely affect our revenue.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We obtain various components included in the
manufacture of our products from single or limited source
suppliers. A disruption or loss of supplies from these companies
or price increases for these components would materially harm
our results of operations, product quality and customer
relationships. For example, we currently utilize a sole source
for the crystal semiconductor chip sets incorporated in our
solid-state microlaser products. We obtain lithium niobate
wafers, gallium arsenide wafers, specialized fiber components
and some lasers used in our telecommunications products
primarily from limited source suppliers. These materials are
important components of certain of our products and we currently
do not have alternative sources for such materials. Also, we do
not currently have long-term or volume purchase agreements with
any of these suppliers, and these components may not in the
future be available at reasonable prices in the quantities
required by us, if at all, in which case our business could be
materially harmed.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">We face risks related to our international
    operations and revenue.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our customers are located throughout the world.
In addition, we have significant offshore operations, including
manufacturing, sales and customer support operations. Our
operations outside North America include facilities in Europe
and Asia-Pacific.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our international presence exposes us to certain
risks, including the following:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our ability to comply with the customs,
    import/export and other trade compliance regulations of the
    countries in which we do business, together with any unexpected
    changes in such regulations;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">tariffs and other trade barriers;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">political, legal and economic instability in
    foreign markets, particularly in those markets in which we
    maintain manufacturing and research facilities;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">difficulties in staffing and management;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">language and cultural barriers;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">seasonal reductions in business activities in the
    countries where our international customers are located;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">integration of foreign operations;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">longer payment cycles;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">greater difficulty in accounts receivable
    collection;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">currency fluctuations; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">potential adverse tax consequences.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Net revenue from customers outside North America
accounted for 30%, 26% and 32% of our total net revenue in
fiscal 2003, 2002 and 2001, respectively. <I>We expect that
revenue from customers outside North America will continue to
account for a significant portion of our total net revenue.
</I>Lower sales levels that typically occur during the summer
months in Europe and some other overseas markets may materially
and
</FONT>

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<DIV align="left">
<FONT size="2">adversely affect our business. In addition, sales
of many of our customers depend on international sales and
consequently further expose us to the risks associated with such
international sales.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The international dimensions of our operations
and sales subject us to a myriad of domestic and foreign trade
regulatory requirements. As part of our ongoing integration
program, we are evaluating our current trade compliance
practices and implementing improvements, where necessary. Among
other things, we are auditing our product export classification
and customs procedures and are installing trade information and
compliance systems using our global enterprise software
platforms. <I>We do not currently expect the costs of such
evaluation or the implementation of any resulting improvements
to have a material adverse effect on our operating results or
business. </I>However, our evaluation and related implementation
are not yet complete and, accordingly, the costs could be
greater than expected and such costs and the legal consequences
of any failure to comply with applicable regulations could
affect our business and operating results.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">We are increasing manufacturing operations
    in China, which expose us to risks inherent in doing business in
    China.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As a result of our Global Realignment Program and
in an effort to reduce costs, we have increased our
manufacturing operations in China and those operations are
subject to greater political, legal and economic risks than
those faced by our other operations. In particular, the
political, legal and economic climate in China (both at national
and regional levels) is extremely fluid and unpredictable. Among
other things, the legal system in China (both at the national
and regional levels) remains highly underdeveloped and subject
to change, with little or no prior notice, for political or
other reasons. Our ability to operate in China may be adversely
affected by changes in Chinese laws and regulations, such as
those relating to taxation, import and export tariffs,
environmental regulations, land use rights, intellectual
property and other matters. Moreover, the enforceability of
applicable existing Chinese laws and regulations is uncertain.
These concerns are exacerbated for foreign businesses, such as
ours, operating in China. Our business could be materially
harmed by any changes to the political, legal or economic
climate in China or the inability to enforce applicable Chinese
laws and regulations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Currently, we operate manufacturing facilities
located in Shenzhen, Fuzhou and Beijing, China. As part of our
Global Realignment Program and in an effort to reduce costs, we
continue to increase the scope and extent of our manufacturing
operations in our Shenzhen facilities. <I>Accordingly, we expect
that our ability to operate successfully in China will become
increasingly important to our overall success. </I>As we
continue to consolidate our manufacturing operations, we will
incur additional costs to transfer product lines to the
facilities located in China, which could have a material adverse
impact on our operating results and financial condition.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We expect to
export the majority of the products manufactured at our
facilities in China.</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Upon application to and approval by the relevant
government authorities, we will not be subject to certain of
China&#146;s taxes and are exempt from customs duties on
imported components or materials and exported products. We are
required to pay income taxes in China, subject to certain tax
relief. We may become subject to other taxes in China or may be
required to pay customs duties and export license fees in the
future. In the event that we are required to pay other taxes,
customs duties and export license fees in China, our results of
operations could be materially and adversely affected.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">We may incur unanticipated costs and
    liabilities, including costs under environmental laws and
    regulations.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our operations use certain substances and
generate certain wastes that are regulated or may be deemed
hazardous under environmental laws. Some of these laws impose
liability for cleanup costs and damages relating to releases of
hazardous substances into the environment. Such laws may become
more stringent in the future. In the past, costs and liabilities
arising under such laws have not been material; however, we
cannot assure you that such matters will not be material to us
in the future.
</FONT>

<P align="center"><FONT size="2">16
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<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our business
could be adversely affected by certain unexpected catastrophic
events.</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We may encounter natural disasters, which could
harm our financial condition and results of operations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our headquarters, including some of our research
and development and manufacturing facilities, are located in
California near major earthquake faults. Any damage to our
facilities in California or other locations as a result of an
earthquake, fire or any other natural disasters could disrupt
our operations and have a material adverse impact on our
business, operating results and financial condition.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our business is
subject to the risks of terrorist acts and acts of
war.</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Terrorist acts or acts of war may disrupt our
operations, as well as our customers&#146; operations. The
terrorist attacks on September&nbsp;11, 2001 created many
economic and political uncertainties, and intensified the global
economic downturn. Any future terrorist activities could further
weaken the global economy and create additional uncertainties,
forcing our customers to further reduce their capital spending
or cancel orders from us, which could have a material adverse
impact on our business, operating results and financial
condition.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Our business and operations would suffer in
    the event of a failure of our information technology
    infrastructure.</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We rely upon the capacity, reliability and
security of our information technology hardware and software
infrastructure and our ability to expand and update this
infrastructure in response to our changing needs. We are
constantly updating our information technology infrastructure.
Among other things, we recently unified most of our
manufacturing, accounting, sales and human resource data systems
using an Oracle platform, and we have entered into an agreement
with Oracle to provide and maintain our global ERP
infrastructure on an outsourced basis. Any failure to manage,
expand and update our information technology infrastructure or
any failure in the operation of this infrastructure could harm
our business.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Despite our implementation of security measures,
our systems are vulnerable to damages from computer viruses,
natural disasters, unauthorized access and other similar
disruptions. Any system failure, accident or security breach
could result in disruptions to our operations. To the extent
that any disruptions or security breach results in a loss or
damage to our data, or inappropriate disclosure of confidential
information, it could harm our business. In addition, we may be
required to spend additional costs and other resources to
protect us against damages caused by these disruptions or
security breaches in the future.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">If we have insufficient proprietary rights
    or if we fail to protect those we have, our business would be
    materially harmed.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may not
obtain the intellectual property rights we require.</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Others, including academic institutions, our
competitors and other large technology-based companies, hold
numerous patents in the industries in which we operate. Some of
these patents may purport to cover our products. In response, we
may seek to acquire license rights to these or other patents or
other intellectual property to the extent necessary to ensure we
possess sufficient intellectual property rights for the conduct
of our business. Unless we are able to obtain such licenses on
commercially reasonable terms, patents or other intellectual
property held by others could inhibit our development of new
products, impede the sale of some of our current products, or
substantially increase the cost to provide these products to our
customers. While in the past licenses generally have been
available to us where third-party technology was necessary or
useful for the development, production or sale of our products,
in the future licenses to third-party technology may not be
available on commercially reasonable terms, if at all.
Generally, a license, if granted, includes payments by us of
up-front fees, ongoing royalties or a combination of both. Such
royalty or other terms could have a significant adverse impact
on our operating results. We are a licensee of a number of
third-party technologies and intellectual property rights and
are required to pay royalties to these third-party licensors on
some of our telecommunications products and laser subsystems.
</FONT>

<P align="center"><FONT size="2">17
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<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our products may
be subject to claims that they infringe the intellectual
property rights of others.</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The industry in which we operate experiences
periodic claims of patent infringement or other intellectual
property rights. We have received in the past and, from time to
time, may in the future receive notices from third parties
claiming that our products infringe upon third-party proprietary
rights. As the downturn in the communications industries
deepened and continued over the past two years, many companies
have turned to their intellectual property portfolios as an
alternative revenue source. This is particularly true of
companies which no longer compete with us. Many of these
companies have larger, more established intellectual property
portfolios than ours. Typical for a growth-oriented technology
company, at any one time we generally have various pending
claims from third parties that one or more of our products or
operations infringe or misappropriate their intellectual
property rights or that one or more of our patents are invalid.
However, as economic uncertainty continues, the level of patent
infringement disputes in which we are engaged and expect to be
engaged for the foreseeable future has increased. For example,
we have pending litigation with Litton Systems, Inc. and the
Board of Trustees of the Leland Stanford, Jr. University
involving claims for damages in connection with the alleged past
infringement by our optical amplifiers of a now expired U.S.
patent. We have also received claims and notice letters from
British Telecommunications and other companies regarding the
alleged infringement of their patents by certain of our
products. We will continue to respond to other claims in the
course of our business operations. <I>We do not believe that any
of these claims will materially harm our business or financial
condition</I>. In the past the settlement and disposition of
these disputes has not had a material adverse impact on our
business or financial condition, however this may not be the
case in the future. Further, the litigation or settlement of
these matters, regardless of the merit of the claims, could
result in significant expense to us and divert the efforts of
our technical and management personnel, whether or not we are
successful. If we are unsuccessful, we could be required to
expend significant resources to develop non-infringing
technology or to obtain licenses to the technology that is the
subject of the litigation. We may not be successful in such
development or such licenses may not be available on terms
acceptable to us, if at all. Without such a license, we could be
enjoined from future sales of the infringing product or products.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our intellectual
property rights may not be adequately protected.</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our future depends in part upon our intellectual
property, including trade secrets, know-how and continuing
technological innovation. We currently hold numerous U.S.
patents on products or processes and corresponding foreign
patents and have applications for some patents currently
pending. The steps taken by us to protect our intellectual
property may not adequately prevent misappropriation or ensure
that others will not develop competitive technologies or
products. Other companies may be investigating or developing
other technologies that are similar to our own. It is possible
that patents may not be issued from any application pending or
filed by us and, if patents do issue, the claims allowed may not
be sufficiently broad to deter or prohibit others from marketing
similar products. Any patents issued to us may be challenged,
invalidated or circumvented. Further, the rights under our
patents may not provide a competitive advantage to us. In
addition, the laws of some territories in which our products are
or may be developed, manufactured or sold, including Europe,
Asia-Pacific or Latin America, may not protect our products and
intellectual property rights to the same extent as the laws of
the United States.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We face
certain litigation risks that could harm our
business.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have had numerous lawsuits filed against us
asserting various claims, including securities and ERISA class
actions and stockholder derivative actions. The results of
complex legal proceedings are difficult to predict. Moreover,
many of the complaints filed against us do not specify the
amount of damages that plaintiffs seek and we therefore are
unable to estimate the possible range of damages that might be
incurred should these lawsuits be resolved against us. While we
are unable to estimate the potential damages arising from such
lawsuits, certain of them assert types of claims that, if
resolved against us, could give rise to substantial damages.
Thus, an unfavorable outcome or settlement of one or more of
these lawsuits could have a material adverse effect on our
financial position, liquidity and results of operations. Even if
these lawsuits are not resolved against us, the uncertainty and
expense associated with unresolved lawsuits could seriously harm
our business, financial condition and reputation. Litigation can
be costly, time-consuming and disruptive to normal
</FONT>

<P align="center"><FONT size="2">18
</FONT>

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<DIV align="left">
<FONT size="2">business operations. The costs of defending these
lawsuits, particularly the securities class actions and
stockholder derivative actions, have been significant, will
continue to be costly and may not be covered by our insurance
policies. The defense of these lawsuits could also result in
continued diversion of our management&#146;s time and attention
away from business operations, which could harm our business.
</FONT>
</DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">We may have difficulty obtaining director
    and officer liability insurance in acceptable amounts for
    acceptable rates.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Like most other public companies, we carry
insurance protecting our officers and directors against claims
relating to the conduct of our business. Historically, this
insurance covered, among other things, the costs incurred by
companies and their management to defend against and resolve
claims relating to management conduct and results of operations,
such as securities class action claims. These claims typically
are extremely expensive to defend against and resolve. Hence, as
is customary, we purchase and maintain insurance to cover some
of these costs. We pay significant premiums to acquire and
maintain this insurance, which is provided by third-party
insurers, and we agree to underwrite a portion of such exposures
under the terms of the insurance coverage. Over the last several
years, the premiums we have paid for this insurance have
increased substantially. One consequence of the current economic
environment and decline in stock prices has been a substantial
increase in the number of securities class actions and similar
claims brought against public corporations and their management,
including our company and certain of our current and former
officers and directors. Many, if not all, of these actions and
claims are, and will likely continue to be, at least partially
insured by third-party insurers. Consequently, insurers
providing director and officer liability insurance have in
recent periods sharply increased the premiums they charge for
this insurance, raised retentions (that is, the amount of
liability that a company is required to pay to defend and
resolve a claim before any applicable insurance is provided),
and limited the amount of insurance they will provide. Moreover,
insurers typically provide only one-year policies.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The insurance policies that may cover the current
securities lawsuits against us have a $10&nbsp;million
retention. As a result, the costs we incur in defending the
current securities lawsuits against us may not be reimbursed
until they exceed $10&nbsp;million. The policies that would
cover any future lawsuits may not provide any coverage to us and
may cover the directors and officers only in the event we are
unable to cover their costs in defending against and resolving
any future claims. In fact our current policy only covers our
directors and officers and is only applicable under
circumstances in which the Company is unable to pay or is
prohibited from paying claims accrued during the policy period.
As a result, our costs in defending or settling any future
lawsuits or paying any judgments arising therefrom could
increase significantly and could materially impair the
Company&#146;s financial condition.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each year we negotiate with insurers to renew our
director and officer insurance. Particularly in the current
economic environment, we cannot assure you that in the future we
will be able to obtain sufficient director and officer liability
insurance coverage at acceptable rates and with acceptable
deductibles and other limitations. Failure to obtain such
insurance could materially harm our financial condition in the
event that we are required to defend against and resolve any
future or existing securities class actions or other claims made
against us or our management arising from the conduct of our
operations. Further, the inability to obtain such insurance in
adequate amounts may impair our future ability to retain and
recruit qualified officers and directors.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Recently enacted and proposed regulatory
    changes may cause us to incur increased costs.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Recently enacted and proposed changes in the laws
and regulations affecting public companies, including the
provisions of the Sarbanes-Oxley Act of 2002, will increase our
expenses as we evaluate the implications of new rules and devote
resources to respond to the new requirements. <I>In particular,
we expect to incur additional SG&#38;A expense as we implement
Section&nbsp;404 of the Sarbanes-Oxley Act, which requires
management to report on, and our independent auditors to attest
to, our internal controls. </I>The compliance of these new rules
could also result in continued diversion of management&#146;s
time and attention, which could prove to be disruptive to normal
business operations. Further, the impact of these events could
also make it more
</FONT>

<P align="center"><FONT size="2">19
</FONT>

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<DIV align="left">
<FONT size="2">difficult for us to attract and retain qualified
persons to serve on our board of directors or as executive
officers, which could harm our business.
</FONT>
</DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">If we fail to manage our exposure to
    worldwide financial and securities markets successfully, our
    operating results could suffer.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are exposed to financial market risks,
including changes in interest rates, foreign currency exchange
rates and marketable equity security prices. We often utilize
derivative financial instruments to mitigate these risks. We do
not use derivative financial instruments for speculative or
trading purposes. The primary objective of most of our
investment activities is to preserve principal while at the same
time maximizing yields without significantly increasing risk. To
achieve this objective, a majority of our marketable investments
are floating rate and municipal bonds, auction instruments and
money market instruments denominated in U.S. dollars. When we
acquire assets denominated in foreign currencies, we usually
mitigate currency risks associated with these exposures with
forward currency contracts. A substantial portion of our sales,
expense and capital purchasing activities are transacted in U.S.
dollars. However, some of these activities are conducted in
other currencies, primarily Canadian and European currencies. To
protect against reductions in value and the volatility of future
cash flows caused by changes in foreign exchange rates, we may
enter into foreign currency forward contracts. The contracts
reduce, but do not always entirely eliminate, the impact of
foreign currency exchange rate movements. Actual results on our
financial position may differ materially.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We also hold investments in other public and
private companies, including, among others, Nortel Networks,
Adept and ADVA, and have limited funds invested in private
venture funds. All three companies have experienced severe stock
price declines during the economic downturn, which have greatly
reduced the value of our investments, and we have written down
the value of these investments as the decline in fair value was
deemed to be other-than-temporary. During fiscal 2003, we have
written down the value of our Adept investment to $0 and
recorded impairment charges of $25.0&nbsp;million. During fiscal
2002, we recorded impairment charges of $187.3&nbsp;million
related to Nortel and $13.9 million related to ADVA. During
fiscal 2001, we recorded impairment charges of
$511.8&nbsp;million related to Nortel and $744.7&nbsp;million
related to ADVA. <I>In addition to our investments in public
companies, we have in the past and expect to continue to make
investments in privately held companies for strategic and
commercial purposes. </I>For example, we had a commitment to
provide additional funding of up to $20.6&nbsp;million to
certain venture capital investment partnerships as of
September&nbsp;30, 2003. In recent months several of the private
companies in which we held investments have ceased doing
business and have either liquidated or are in bankruptcy
proceedings. If the carrying value of our investments exceeds
the fair value and the decline in fair value is deemed to be
other-than-temporary, we will be required to write down the
value of the investments, which could materially harm our
results of operations or financial condition.
</FONT>

<P align="left">
<B><FONT size="2">Risks Related to the Notes and our
Securities</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">We significantly increased our leverage as
    a result of the sale of the Notes.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In connection with our initial issuance of the
Notes, we incurred $475 million of indebtedness, which
substantially increased our principal payment obligations and we
may not have enough cash to repay the notes when due. Our
ability to satisfy our obligations to repay amounts outstanding
under the Notes will depend on our ability to generate cash. Our
ability to generate sufficient cash flow will depend on our
ability to successfully manage our business and other factors,
including general economic, financial, competitive, legislative
and regulatory conditions, some of which are beyond our control.
By incurring new indebtedness, the related risks that we now
face could intensify. Our ability to satisfy our payment
obligations under the Notes and to satisfy any other future debt
obligations will depend upon our future operating performance
and possibly our ability to obtain additional financing. The
degree to which we are leveraged could materially and adversely
affect our ability successfully to obtain financing for working
capital, acquisitions or other purposes and could make us more
vulnerable to industry downturns and competitive pressures.
</FONT>

<P align="center"><FONT size="2">20
</FONT>

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<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">The Notes are effectively subordinated to
    all liabilities of our subsidiaries and to our secured
    debt.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">None of our subsidiaries have guaranteed our
obligations under, or have any obligation to pay any amounts due
on, the Notes. As a result, the Notes are effectively
subordinated to all liabilities of our subsidiaries. Our rights
and the rights of our creditors, including holders of the Notes,
to participate in the assets of any of our subsidiaries upon
their liquidation or recapitalization will generally be subject
to the prior claims of those subsidiaries&#146; creditors. At
September&nbsp;30, 2003, our subsidiaries had outstanding
indebtedness of approximately $6.0&nbsp;million, other than
intercompany indebtedness and trade payables.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, the Notes are not secured by any of
our assets or those of our subsidiaries. As a result, the Notes
will be effectively subordinated to any secured debt we may
incur. In any liquidation, dissolution, bankruptcy or other
similar proceeding, holders of our secured debt may assert
rights against any assets securing such debt in order to receive
full payment of their debt before those assets may be used to
pay the holders of the Notes. At September 30, 2003, we had no
secured debt outstanding.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">The Notes do not restrict our ability to
    incur additional debt or to take other actions that could
    negatively impact holders of the Notes.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are not restricted under the terms of the
Notes from incurring additional indebtedness, including secured
debt. In addition, the limited covenants applicable to the Notes
do not require us to achieve or maintain any minimum financial
results relating to our financial position or results of
operations. Our ability to recapitalize, incur additional debt
and take a number of other actions that are not limited by the
terms of the Notes could have the effect of diminishing our
ability to make payments on the Notes when due. In addition, we
are not restricted from repurchasing subordinated indebtedness
or shares of our Common Stock by the terms of the Notes.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">We may not have the ability to repurchase
    the Notes in cash if noteholders exercise their repurchase right
    on the date specified herein, upon the occurrence of a
    designated event or upon an event of default. If this were to
    occur, these noteholders could lose all or part of their
    investment.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Holders of the Notes have the right to require us
to repurchase their Notes on November&nbsp;15, 2008 or upon the
occurrence of a designated event prior to maturity, as described
under the heading &#147;Description of Notes &#151; Repurchase
at Option of the Holder.&#148; Moreover, in the event of a
default under the indenture, such as the failure to satisfy our
payment obligations or the acceleration of any of our
then-outstanding indebtedness in excess of $50 million, the
trustee or the holders of the Notes may accelerate our
obligation to repay the principal amount of the Notes and
accrued and unpaid additional interest, if any. We may not have
sufficient funds to repurchase the Notes in cash or make the
required repayment at such time or the ability to arrange
necessary financing on acceptable terms. In addition, our
ability to repurchase the Notes in cash or make the required
repayment may be limited by law or the terms of other agreements
relating to our indebtedness outstanding at the time. As a
result, we may not be able to fulfill our obligations under the
Notes, and holders of the Notes could lose all or part of their
investment.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">The contingent conversion features of the
    Notes could result in holders of the Notes receiving less than
    the value of the Common Stock into which their Notes would
    otherwise be convertible.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Notes are convertible into shares of our
Common Stock only if specified conditions are met. If the
specific conditions for conversion are not met, holders of the
Notes will not be able to convert their Notes, and they may not
be able to receive the value of the Common Stock into which the
Notes would otherwise be convertible.
</FONT>

<P align="center"><FONT size="2">21
</FONT>
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<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Because we may chose to deliver either cash
    in lieu of shares of our Common Stock, shares of our Common
    Stock or a combination thereof to noteholders electing to
    convert their Notes, upon a conversion election these
    noteholders will bear the risk of fluctuations in the value of
    our Common Stock and may receive less than the market value of
    our Common Stock as of the date of the conversion
    election.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">With respect to conversion elections that occur
on or before the fifth day prior to maturity (the final notice
date), we may elect to satisfy our obligation upon conversion by
cash settlement or combined cash and stock settlement. We will
notify the converting noteholders if we chose to satisfy our
obligation upon conversion by cash or combined settlement, and
these noteholders may retract their conversion notice. If the
conversion notice has not been retracted, then cash settlement
or combined settlement will occur on the business day following
the final trading day of the five trading-day period beginning
on the first trading day after the final day of the conversion
retraction period. Because the market price of our Common Stock
will be determined prior to the date of settlement, if we elect
a combined settlement or settlement in shares of our Common
Stock, note holders bear the market risk that our Common Stock
will decline in value between the date the market price is
calculated and the settlement date.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">If the shares of our Common Stock are
    delisted, the indenture requires us, but we may be unable, to
    repurchase, at the option of the noteholder, the outstanding
    Notes at face value.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If a termination of trading event occurs at any
time prior to the maturity of the Notes, noteholders may require
us to repurchase their Notes, in whole or in part, on a
repurchase date that is 30&nbsp;days after the date of our
notice of the designated event. A &#147;termination of
trading&#148; will be deemed to have occurred if our Common
Stock (or other Common Stock into which the Notes are then
convertible) is neither listed for trading on a United States
national securities exchange nor approved for trading on The
Nasdaq National Market. If our Common Stock is delisted from
Nasdaq, we may be obligated to repay to the noteholders
$475,000,000 in principal, plus amounts for accrued and unpaid
additional interest, if any. We may not have sufficient funds to
make the required repurchase in cash at such time or the ability
to arrange necessary financing on acceptable terms. If we elect
to pay the repurchase price in stock, it would be highly
dilutive to our earnings per share and consequently harm our
stock price. If such a termination of trading occurs during a
period of unexpectedly weak financial condition for the Company,
such a repurchase obligation could further weaken our financial
condition and disrupt our normal business operations and our
ability to meet our other financial obligations.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Our reported earnings per share may be more
    volatile because of the conversion contingency features of the
    Notes.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Holders of the Notes are entitled to convert the
Notes into shares of our Common Stock, among other
circumstances, if the Common Stock price for the periods
described in this prospectus is more than 110% of the conversion
price. Unless and until this contingency or another conversion
contingency is met, the shares of our Common Stock underlying
the Notes are not included in the calculation of our basic or
diluted earnings per share. When this contingency is met,
diluted earnings per share may, depending on the relationship
between the interest on the Notes and the earnings per share of
our Common Stock, be expected to decrease as a result of the
inclusion of the underlying shares in the diluted earnings per
share calculation. Moreover, volatility in our stock price could
cause this condition to be met in one quarter and not in a
subsequent quarter, increasing the volatility of diluted
earnings per share.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">A trading market may not develop for the
    Notes.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">At the time of issuance, there was no trading
market for the Notes, and there can be no assurance as to:
(1)&nbsp;the liquidity of any market for the Notes that develop
following the issuance of the Notes; (2)&nbsp;the ability of the
holders to sell their Notes; or (3)&nbsp;the prices at which
holders of the Notes would be able to sell their Notes. If an
active trading market for the Notes develops, the Notes could
trade at prices higher or lower than their initial purchase
prices depending on many factors. If an active trading market
for the Notes does not develop, or if one develops but is not
maintained, noteholders may experience difficulty in reselling
or in their
</FONT>

<P align="center"><FONT size="2">22
</FONT>

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<DIV align="left">
<FONT size="2">ability to sell, the Notes and the trading price
of the Notes could fall. We do not intend to apply for listing
of the Notes on any securities exchange or for quotation on the
Nasdaq National Market.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have been informed by the initial purchasers
that they intend to make a market in the Notes, but they may
cease doing so at any time without notice. Such market-making
activities will be subject to limits imposed by the Securities
Act and the Exchange Act.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">The Notes may not be rated or may receive a
    lower rating than anticipated.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We do not intend to seek a rating on the Notes.
However, if one or more rating agencies rates the Notes and
assigns the Notes a rating lower than the rating expected by
investors, or reduces their rating in the future, the market
price of the Notes and our Common Stock would be harmed.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Our stock price has been volatile
    historically and may continue to be volatile. The price of our
    Common Stock, and therefore the price of the Notes, may
    fluctuate significantly, which may make it difficult for holders
    to resell the Notes or the shares of our Common Stock issuable
    upon conversion of the Notes when desired or at attractive
    prices.</FONT></I></B></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The trading price of our Common Stock has been
and may continue to be subject to wide fluctuations. During
fiscal 2003, the closing sale prices of our Common Stock on the
Nasdaq National Market ranged from $1.62 to $4.28 per share, and
the closing sale price on December&nbsp;11, 2003 was $3.38 per
share. Our stock price may fluctuate in response to a number of
events and factors, such as quarterly variations in operating
results, announcements of technological innovations or new
products by us or our competitors, changes in financial
estimates and recommendations by securities analysts, the
operating and stock price performance of other companies that
investors may deem comparable to us, and new reports relating to
trends in our markets or general economic conditions.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, the stock market in general, and the
market price for companies in the telecommunications industry,
have experienced extreme volatility that often has been
unrelated to the operating performance of such companies. These
broad market and industry fluctuations may adversely affect the
price of our stock, regardless of our operating performance.
Because the Notes are convertible into shares of our Common
Stock, volatility or depressed prices of our Common Stock could
have a similar effect on the trading price of our Notes. Holders
who receive Common Stock upon conversion also will be subject to
the risk of volatility and depressed prices of our Common Stock.
In addition, the existence of the Notes may encourage short
selling in our Common Stock by market participants because the
conversion of the Notes could depress the price of our Common
Stock.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Additionally, volatility or a lack of positive
performance in our stock price may adversely affect our ability
to retain key employees, all of whom have been granted stock
options.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Resales of the Notes and the shares of our
    Common Stock under this prospectus may be limited by us under
    certain circumstances.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Although we are required to register resales of
the Notes and the shares of our Common Stock issuable upon
conversion of the Notes, the registration statement of which
this prospectus is a part may not be available to holders at all
times. We may suspend the use of this prospectus under certain
circumstances relating to pending corporate developments, public
filings with the SEC and similar events. While our ability to
suspend the use of this prospectus is limited, we will be
permitted to suspend the use of the prospectus for up to
60&nbsp;days in any 3-month period under certain circumstances,
relating to possible acquisitions, financings or other similar
transactions.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>The
ability of holders of the Notes to cause us to repurchase the
Notes upon a designated event could discourage a potential
acquirer.</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Upon the occurrence of certain acquisitions,
mergers, combinations and similar transactions, as more fully
described in &#147;Description of the Notes&nbsp;&#151;
Repurchase at Option of the Holder Upon a Designated
</FONT>

<P align="center"><FONT size="2">23
</FONT>
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<DIV align="left">
<FONT size="2">Event,&#148; the holders of the Notes have the
right to cause us to repurchase the Notes. Potential acquirers
who otherwise would consider these types of acquisitions,
mergers, combinations, or similar transactions, may be reluctant
in doing so if they were concerned with the size of the
repurchase payments that we may have to make to the holders of
the Notes upon consummation of such a transaction. If we were to
make repurchase payments to the holders of the Notes upon the
consummation of such a transaction, our cash balances could
decrease significantly, or we, or our potential acquirer, may
have to assume additional debt to satisfy those repurchase
obligations. If either of these scenarios would be viewed
negatively by potential acquirers, these repurchase obligations
would have the effect of deterring such acquisition transactions
with such potential acquirers.
</FONT>
</DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Sales of a significant number of shares of
    our Common Stock in the public market, or the perception of such
    sales, could reduce our share price and impair our ability to
    raise funds in new securities offerings.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Sales of substantial amounts of shares of our
Common Stock in the public market after our initial issuance of
the Notes, or the perception that those sales may occur, could
cause the market price of our Common Stock to decline. Because
the Notes are convertible into Common Stock only at a conversion
price in excess of the recent trading price, such a decline in
our Common Stock price may cause the value of the Notes to
decline.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">The large number of shares of our Common
    Stock eligible for future sale upon conversion of the Notes
    could depress our stock price.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If all of the Notes are converted at the
conversion rate of 202.4291 shares of Common Stock per $1,000 in
principal amount of Notes, approximately 96,153,846 shares of
our Common Stock would be issuable. Our stock price could be
depressed significantly if the holders of the Notes decide to
convert their Notes and sell the Common Stock issued upon
conversion of the Notes or are perceived by the market as
intending to sell them, notwithstanding our ability to elect to
settle any conversion notices in cash. These sales also might
make it more difficult for us to sell equity securities in the
future at a time and at a price that we deem appropriate.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Our rights plans and our ability to issue
    additional preferred stock could harm the rights of our
    stockholders.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In February 2003, we amended and restated our
Stockholder Rights Agreement and currently each share of our
outstanding Common Stock is associated with one right. Each
right entitles stockholders to purchase 1/100,000 share of our
Series&nbsp;B Preferred Stock at an exercise price of $21.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The rights only become exercisable in certain
limited circumstances following the tenth day after a person or
group announces acquisition of or tender offers for 15% or more
of our Common Stock. For a limited period of time following the
announcement of any such acquisition or offer, the rights are
redeemable by us at a price of $0.01 per right. If the rights
are not redeemed, each right will then entitle the holder to
purchase Common Stock having the value of twice the then-current
exercise price. For a limited period of time after the
exercisability of the rights, each right, at the discretion of
our Board of Directors, may be exchanged for either 1/100,000
share of Series&nbsp;B Preferred Stock or one share of Common
Stock per right. The rights expire on June&nbsp;22, 2013.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Board of Directors has the authority to issue
up to 499,999 shares of undesignated preferred stock and to
determine the powers, preferences and rights and the
qualifications, limitations or restrictions granted to or
imposed upon any wholly unissued shares of undesignated
preferred stock and to fix the number of shares constituting any
series and the designation of such series, without the consent
of our stockholders. The preferred stock could be issued with
voting, liquidation, dividend and other rights superior to those
of the holders of Common Stock.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The issuance of Series&nbsp;B Preferred Stock or
any preferred stock subsequently issued by our Board of
Directors, under some circumstances, could have the effect of
delaying, deferring or preventing a change in control.
</FONT>

<P align="center"><FONT size="2">24
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Some provisions contained in the rights plan, and
in the equivalent rights plan that our subsidiary JDS Uniphase
Canada Ltd. has adopted with respect to our exchangeable shares,
may have the effect of discouraging a third party from making an
acquisition proposal for us and may thereby inhibit a change in
control. For example, such provisions may deter tender offers
for shares of Common Stock or exchangeable shares, which offers
may be attractive to stockholders, or deter purchases of large
blocks of Common Stock or exchangeable shares, thereby limiting
the opportunity for stockholders to receive a premium for their
shares of Common Stock or exchangeable shares over the
then-prevailing market prices.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Some anti-takeover provisions contained in
    our charter and under Delaware laws could hinder a takeover
    attempt.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are subject to the provisions of
Section&nbsp;203 of the Delaware General Corporation Law
prohibiting, under some circumstances, publicly-held Delaware
corporations from engaging in business combinations with some
stockholders for a specified period of time without the approval
of the holders of substantially all of our outstanding voting
stock. Such provisions could delay or impede the removal of
incumbent directors and could make more difficult a merger,
tender offer or proxy contest involving us, even if such events
could be beneficial, in the short-term, to the interests of the
stockholders. In addition, such provisions could limit the price
that some investors might be willing to pay in the future for
shares of our Common Stock. Our certificate of incorporation and
bylaws contain provisions relating to the limitations of
liability and indemnification of our directors and officers,
dividing our board of directors into three classes of directors
serving three-year terms and providing that our stockholders can
take action only at a duly called annual or special meeting of
stockholders. These provisions also may have the effect of
deterring hostile takeovers or delaying changes in control or
management of us.
</FONT>

<!-- link1 "RATIO OF EARNINGS TO FIXED CHARGES" -->
<DIV align="left"><A NAME="005"></A></DIV>

<P align="center">
<B><FONT size="2">RATIO OF EARNINGS TO FIXED CHARGES</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The ratio of earnings to fixed charges is
computed by dividing fixed charges into net earnings
(loss)&nbsp;before income tax provision (benefit), minority
interest (benefit)&nbsp;and cumulative effect of change in
accounting principle plus fixed charges. Fixed charges consist
of interest expense and that portion of rent expense deemed to
represent interest. The deficiencies of net earnings to cover
fixed charges for the years ended June&nbsp;30, 2003, 2002,
2001, 2000, 1999 and the three month period ended
September&nbsp;30, 2003 were $(920,293), $(8,501,090),
$(56,493,762), $(829,811), $(149,589) and $(38,032),
respectively (in thousands).
</FONT>

<P align="center"><FONT size="2">25
</FONT>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "USE OF PROCEEDS" -->
<DIV align="left"><A NAME="006"></A></DIV>

<P align="center">
<B><FONT size="2">USE OF PROCEEDS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We will not receive any proceeds from the resale
of the Notes or the shares of Common Stock issuable upon
conversion of the Notes by the selling securityholders but we
have agreed to pay certain registration expenses.
</FONT>

<!-- link1 "SELLING SECURITYHOLDERS" -->
<DIV align="left"><A NAME="007"></A></DIV>

<P align="center">
<B><FONT size="2">SELLING SECURITYHOLDERS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We originally issued the Notes on
October&nbsp;31, 2003 to the initial purchasers in a transaction
exempt from the registration requirements of the Securities Act.
The initial purchasers resold the Notes to persons believed by
the initial purchaser to be &#147;qualified institutional
buyers&#148; under Rule&nbsp;144A under the Securities Act in
transactions exempt from the registration requirements of the
Securities Act. The selling securityholders (which term includes
their transferees, pledges, donees or successors) may from time
to time offer and sell pursuant to this prospectus any and all
of the Notes and the shares of Common Stock issuable upon
conversion of the Notes.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Any or all of the Notes or Common Stock issuable
upon conversion of the Notes may be offered for sale pursuant to
this prospectus by the selling securityholders from time to
time. Accordingly, no estimate can be given as to the amount of
Notes or Common Stock that will be held by the selling
securityholders upon consummation of any such sales. The table
below assumes that all selling securityholders will sell all of
their Notes or Common Stock, unless otherwise indicated. The
selling securityholders identified below may have sold,
transferred or otherwise disposed of all or a portion of their
Notes or Common Stock since the date on which they provided the
information regarding their Notes and Common Stock in
transactions exempt from the registration requirements of the
Securities Act. No selling securityholder may make any offer or
sale under this prospectus unless that selling securityholder is
listed in the table below. The names of each selling
securityholder, the principal amount of Notes that may be
offered by such selling securityholder pursuant to this
prospectus and the number of shares of Common Stock into which
such Notes are convertible will be set forth in a prospectus
supplement, if required. Unless described in the prospectus
supplement, none of the selling securityholders has had a
material relationship with us or any of our predecessors or
affiliates within the past three years.
</FONT>

<P align="center"><FONT size="2">26
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth information as of
December&nbsp;11, 2003 regarding the offer and sale of the Notes
and the shares of our Common Stock issuable upon conversion of
the Notes and is based on information provided to us by the
selling securityholders. Beneficial ownership is determined in
accordance with Rule&nbsp;13d-3 of the Securities Exchange Act.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="44%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Aggregate</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Principal</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Amount of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Percentage</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Common</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Common Stock</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Notes at</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">of Notes</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Stock</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Registered</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Maturity that</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Outstanding</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Beneficially</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Hereby that</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">May be</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Prior to</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Owned Prior</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">May be</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Name of Selling Securityholder</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Sold(1)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Resale</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">to Conversion</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Sold(2)</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Allstate Insurance Company(3)(5)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">104,300</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">202,429</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Argent Classic Convertible Arbitrage Fund
    (Bermuda) Ltd.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,200,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.31</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,255,060</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Argent Classic Convertible Arbitrage
    Fund&nbsp;II, L.P.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">200,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">40,485</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Argent Classic Convertible Arbitrage Fund, L.P.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,200,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">242,914</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bear, Stearns &#38; Co. Inc.(4)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,500,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">506,072</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Calamos Market Neutral Fund&nbsp;&#151; Calamos
    Investment Trust
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">809,716</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Clinton Riverside Convertible Portfolio Limited
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22,290,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.69</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,512,145</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Clinton Multistrategy Master Fund, Ltd.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,710,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.68</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,572,874</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Context Convertible Arbitrage Fund, LP(4)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">900,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">182,186</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Context Convertible Arbitrage Offshore,
    Ltd.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,100,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">425,101</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">DBAG London(5)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">91,050,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19.71</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18,431,174</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">DKR Saturn Event Driven Holding Fund
    Ltd.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,500,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.79</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,720,647</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">DKR Saturn Special Situations Holding Fund
    Ltd.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,500,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.79</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,720,647</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">FrontPoint Convertible Arbitrage Fund,
    L.P.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">404,858</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Global Bermuda Limited Partnership
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">404,858</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">HFR RV Performance Master Trust
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">75,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,182</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">JMG Capital Partners, L.P.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,500,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.16</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,113,360</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Kayne Anderson Capital Income Partners (QP) L.P(5)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">850,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">172,064</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Kayne Anderson Income Partners, L.P.(5)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">75,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,182</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">KBC Convertible Arbitrage Fund(5)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18,690,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.93</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,783,400</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">KBC Convertible Mac 28 Fund Ltd.(5)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,750,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">759,109</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">KBC Multi Strategy Arbitrage Fund(5)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,220,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.36</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,271,255</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Lakeshore International Limited
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.68</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,619,433</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Melody IAM Ltd.(5)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,340,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">271,255</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Morgan Stanley &#38; Co(4)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,250,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.32</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,265,182</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">National Bank of Canada
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">500,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">101,214</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Nisswa Master Fund Ltd.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">809,716</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Pacific Life Insurance Company
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">202,429</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PRS Convertible Arbitrage Master Fund
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,550,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">313,765</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">S.A.C. Capital Associates, LLC
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.11</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,024,291</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">TCW Group, Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.26</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,214,574</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center"><FONT size="2">27
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="44%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Aggregate</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Principal</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Amount of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Percentage</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Common</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Common Stock</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Notes at</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">of Notes</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Stock</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Registered</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Maturity that</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Outstanding</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Beneficially</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Hereby that</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">May be</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Prior to</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Owned Prior</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">May be</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Name of Selling Securityholder</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Sold(1)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Resale</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">to Conversion</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Sold(2)</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">UBS O&#146;Connor LLC F/ B/ O O&#146;Connor
    Global Convertible Arbitrage Master Ltd.(5)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.05</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,012,145</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Wachovia Capital Markets LLC(4)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,600,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">323,886</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">White River Securities L.L.C.(4)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">975,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">506,072</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Xavex-Convertible Arbitrage 8 Fund
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">450,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">91,093</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Xavex-Convertible Arbitrage 10 Fund
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">400,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">80,971</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">All other holders of Notes or future transferees,
    pledges, donees or successors of any such holders(6)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">222,625,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">46.87</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">45,065,806</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">475,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100.00</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">104,300</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">96,153,846</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="4%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">*&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Less than 1%
    </FONT></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Assumes none of the holder&#146;s Notes are
    converted into shares of Common Stock and a cash payment in lieu
    of any fractional share interests. Assumes offer and sale of all
    Notes held by the selling securityholder, although the selling
    securityholder is not obligated to sell any Notes.
    </FONT></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD><FONT size="2">(2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Assumes conversion of all of the holder&#146;s
    Notes at a conversion price of $4.94. However, this conversion
    price will be subject to satisfaction of certain conditions and
    adjustment as described under &#147;Description of the
    Notes&nbsp;&#151; Conversion Rights.&#148; As a result, the
    amount of Common Stock issuable upon conversion of the Notes may
    increase or decrease in the future. Assumes offer and sale of
    all shares of Common Stock issuable upon conversion of the Notes
    held by the securityholder, although the selling securityholder
    is not obligated to sell any shares of Common Stock. Also
    assumes that after the sale of all shares of Common Stock
    issuable upon conversion of the Notes held by a selling
    securityholder, no selling securityholder will own 1% or more of
    our outstanding Common Stock.
    </FONT></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD><FONT size="2">(3)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Includes (1)&nbsp;73,600 shares of common stock
    held by Allstate Insurance Company; and (2)&nbsp;6,500 shares of
    common stock and 24,200 shares of common stock held by Agents
    Pension Plan and Allstate Retirement Plan, respectively, each of
    which are employer sponsored plans maintained for Allstate
    employees and agents.
    </FONT></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD><FONT size="2">(4)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">This selling securityholder has identified itself
    as a registered broker-dealer and, accordingly, an underwriter.
    Please see &#147;Plan of Distribution&#148; for disclosure
    regarding these selling securityholders.
    </FONT></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD><FONT size="2">(5)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">This selling securityholder has identified itself
    as an affiliate of a broker-dealer. Please see &#147;Plan of
    Distribution&#148; for disclosure regarding these selling
    securityholders.
    </FONT></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD><FONT size="2">(6)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Information about other selling securityholders
    will be set forth in prospectus supplements, if required.
    Assumes that any other holders of Notes, or any future
    transferees, pledgees, donees or successors of or from any such
    other holders of Notes, do not beneficially own any Common Stock
    other than the Common Stock issuable upon conversion of the
    Notes at the initial conversion rate.
    </FONT></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The selling securityholders listed above may have
sold or transferred, in transactions exempt from the
registration requirements of the Securities Act, some or all of
their Notes since the date on which the information is presented
in the above table. Information concerning other selling
securityholders will be set forth in prospectus supplements from
time to time, if required. Information about the selling
securityholders may change over time. Any changed information
will be set forth in prospectus supplements if and when
necessary.
</FONT>

<P align="center"><FONT size="2">28
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center">
<B><FONT size="2">VOTING/ INVESTMENT CONTROL TABLE</FONT></B>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="43%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="54%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Selling Securityholder</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Natural person or persons with voting or dispositive power</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Allstate Insurance Company
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">*
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Argent Classic Convertible Arbitrage Fund
    (Bermuda) Ltd.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Henry Cox and Thomas Marshall
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Argent Classic Convertible Arbitrage
    Fund&nbsp;II, L.P.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Bruce McMahan, Saul Schwartzman, John Gordon
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Argent Classic Convertible Arbitrage Fund,
    L.P.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Bruce McMahan, Saul Schwartzman, John Gordon
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bear, Stearns&nbsp;&#38; Co. Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">David Liebowitz and Yan Erlikh
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Calamos Market Neutral Fund&nbsp;&#151; Calamos
    Investment Trust
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Nick Calamos
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Clinton Riverside Convertible Portfolio Limited
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">*
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Clinton Multistrategy Master Fund,
    Ltd.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">*
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Context Convertible Arbitrage Fund, LP
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">William Fertig and Michael Rosen
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Context Convertible Arbitrage Offshore,
    Ltd.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">William Fertig and Michael Rosen
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">DBAG London
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">*
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">DKR Saturn Event Driven Holding Fund Ltd
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">*
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">DKR Saturn Special Situations Holding Fund Ltd
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">*
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">FrontPoint Convertible Arbitrage Fund,
    L.P.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">*
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Global Bermuda Limited Partnership
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">*
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">HFR RV Performance Master Trust
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">*
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">JMG Capital Partners, L.P.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Jonathan M. Glasser
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Kayne Anderson Capital Income Partners
    (QP)&nbsp;L.P.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Richard A. Kayne
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Kayne Anderson Income Partners, L.P.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Richard A. Kayne
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">KBC Convertible Arbitrage Fund
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">*
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">KBC Convertible Mac 28 Fund Ltd.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">*
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">KBC Multi Strategy Arbitrage Fund
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">*
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Lakeshore International Limited
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">*
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Melody IAM Ltd.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">*
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Morgan Stanley&nbsp;&#38; Co.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">*
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">National Bank of Canada
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">William Fertig and Michael Rosen
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Nisswa Master Fund Ltd.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Brian Taylor, Aaron Yary, Chris Lyche, Nikhil
    Mankodi, Michael O&#146;Connell, Scott Reinhart, Pat
    Parthasarathy
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Pacific Life Insurance Company
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Larry Card, Elaine Havens, Rex Olson and Simon Lee
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PRS Convertible Arbitrage Master Fund
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">*
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">S.A.C. Capital Associates, LLC
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">*
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">TCW Group, Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">*
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">UBS O&#146;Connor LLC F/ B/ O O&#146;Connor
    Global Convertible Arbitrage Master Ltd.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">*
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Wachovia Capital Markets LLC
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Eric Grant
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">White River Securities L.L.C.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">David Liebowitz and Yan Erlikh
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Xavex&nbsp;&#151; Convertible Arbitrage 8 Fund
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">*
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center"><FONT size="2">29
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="43%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="54%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Selling Securityholder</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Natural person or persons with voting or dispositive power</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Xavex&nbsp;&#151; Convertible Arbitrage 10 Fund
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Bruce McMahan, Saul Schwartzman, John Gordon
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">*&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The securityholder has informed us that there is
    no natural person with voting or investment power over the
    respective Notes.
    </FONT></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Generally, only selling securityholders
identified in the foregoing Selling Securityholders Table who
beneficially own the securities set forth opposite their
respective names may sell offered securities under the
registration statement of which this prospectus is a part. We
may from time to time include additional selling securityholders
in an amendment to the registration statement of which this
prospectus is a part, or a supplement to this prospectus.
</FONT>

<!-- link1 "PLAN OF DISTRIBUTION" -->
<DIV align="left"><A NAME="008"></A></DIV>

<P align="center">
<B><FONT size="2">PLAN OF DISTRIBUTION</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This prospectus relates to the resale from time
to time by the selling securityholders of Notes of an aggregate
amount of $475,000,000 and Common Stock issuable upon conversion
of the Notes. The Notes were issued and sold on October&nbsp;31,
2003 in transactions exempt from the registration requirements
of the Securities Act. The Notes and the Common Stock issuable
upon conversion of the Notes are being registered to permit
public secondary trading of these securities by the holders
thereof from time to time after the date of this prospectus. We
have agreed, among other things, to bear all expenses (other
than underwriting discounts and selling commissions) in
connection with the registration and sale of the Notes and the
Common Stock issuable upon conversion of the Notes covered by
this prospectus. We have registered the Notes and the Common
Stock issuable upon conversion of the Notes pursuant to the
terms of a registration rights agreement, but registration of
these securities does not necessarily mean that any of the
securities will be offered and sold by the selling
securityholders.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We will not receive any of the proceeds from
resales of the Notes or the Common Stock issuable upon
conversion of the Notes by the selling securityholders. The
selling securityholders may sell all or a portion of the Notes
and Common Stock issuable upon conversion of the Notes
beneficially owned by them and offered hereby from time to time
on any exchange on which the securities are listed or quotation
service upon which such securities are quoted on terms to be
determined at the times of such sales. The selling
securityholders may also make private sales directly or through
a broker or brokers, in the over-the-counter market, otherwise
than on such exchanges or services in the over-the-counter
market; through the writing of options, whether the options are
listed on an options exchange or otherwise, or through the
settlement of short sales. Alternatively, any of the selling
securityholders may from time to time offer the Notes or the
Common Stock beneficially owned by them through underwriters,
dealers or agents, who may receive compensation in the form of
underwriting discounts, commissions or concessions from the
selling securityholders and the purchasers of the Notes and the
Common Stock for whom they may act as agent. The aggregate
proceeds to the selling securityholders from the sale of the
Notes or Common Stock offering by them hereby will be the
purchase price of such Notes or Common Stock less discounts and
commissions, if any.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Notes and Common Stock may be sold from time
to time in one or more transactions at fixed offering prices,
which may be changed, at prevailing market prices at the time of
sale, at prices related to the prevailing market prices, or at
varying prices determined at the time of sale or at negotiated
prices. These prices will be determined by the holders of such
securities or by agreement between these holders and
underwriters or dealers who may receive fees or commissions in
connection therewith. These transactions may include block
transactions or crosses. Crosses are transactions in which the
same broker acts as an agent on both sides of the trade.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In connection with sales of the Notes and the
underlying Common Stock or otherwise, the selling
securityholders may enter into hedging transactions with
broker-dealers. These broker-dealers may in turn engage in short
sales of the Notes and the underlying Common Stock in the course
of hedging their positions. The selling securityholders may also
sell the Notes and underlying Common Stock short and deliver
Notes and the underlying Common Stock to close out short
positions, or loan or pledge Notes and the underlying Common
Stock to broker-dealers that in turn may sell the Notes and the
underlying Common Stock.
</FONT>

<P align="center"><FONT size="2">30
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">However, if the Notes or shares of Common Stock
are to be delivered by the selling securityholder&#146;s
successors in interest, unless permitted by law, we must
distribute a prospectus supplement and/or file an amendment to
the registration statement, of which this prospectus is a part,
under Rule&nbsp;424(b)(3) or other applicable provision of the
Securities Act amending the list of selling securityholders to
include the successors in interest as selling securityholders
under this prospectus. Each selling securityholder may not
satisfy its obligations in connection with short sale or hedging
transactions entered into before the effective date of the
registration statement, of which this prospectus is a part, by
delivering securities registered under such registration
statement.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The selling securityholders or their successors
in interest may from time to time pledge or grant a security
interest in some or all of the Notes or shares of Common Stock
and, if the selling securityholders default in the performance
of their secured obligation, the pledgees or secured parties may
offer and sell the Notes or shares of Common Stock from time to
time under this prospectus; however, in the event of a pledge or
the default on the performance of a secured obligation by the
selling securityholders, in order for the Notes or shares of
Common Stock to be sold under cover of the registration
statement, of which this prospectus is a part, unless permitted
by law, we must distribute a prospectus supplement and/or an
amendment to the registration statement, of which this
prospectus is a part, under Rule&nbsp;424(b)(3) or other
applicable provision of the Securities Act amending the list of
selling securityholders to include the pledge, transferee,
secured party or other successors in interest as selling
securityholders under this prospectus.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each of the selling securityholders that is an
affiliate of a registered broker-dealer has represented to us
that it purchased the Notes and/ or the shares of our Common
Stock issuable upon conversion of the Notes in the ordinary
course of business and at the time of such purchase, the selling
securityholder had no agreements or understandings, directly or
indirectly, with any person to distribute such Notes and/ or the
shares of our Common Stock issuable upon conversion of the Notes.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">To our knowledge, there are currently no plans,
arrangements or understandings between any selling
securityholders and any underwriter, broker-dealer or agent
regarding the sale of the Notes and the underlying Common Stock
by the selling securityholders. Selling securityholders may not
sell any or all of the Notes and the underlying Common Stock
offered by them pursuant to this prospectus. In addition, we
cannot assure you that any such selling securityholder will not
transfer, devise or gift the Notes and the underlying Common
Stock by other means not described in this prospectus. In
addition, any securities covered by this prospectus which
qualify for sale pursuant to Rule&nbsp;144 or Rule&nbsp;144A of
the Securities Act may be sold under Rule&nbsp;144 or
Rule&nbsp;144A rather than pursuant to this prospectus.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our outstanding Common Stock is listed for
trading on the Nasdaq National Market. We do not intend to list
the Notes for trading on any national securities exchange or on
the Nasdaq National Market. The Notes are eligible for trading
in the PORTAL Market. The initial purchasers have advised us
that they intend to make a market in the Notes as permitted by
applicable laws and regulations but are not obligated, however,
to make a market in the notes and any such market making may be
discontinued at any time at the sole discretion of the initial
purchasers. Accordingly, we cannot assure you that any trading
market for the Notes will develop.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The selling securityholders and any broker and
any broker-dealers, agents or underwriters that participate with
the selling securityholders in the distribution of the Notes or
the Common Stock may be deemed to be &#147;underwriters&#148;
within the meaning of the Securities Act, in which event any
commission received by such broker-dealers, agents or
underwriters, and any profit on the resale of the Notes or the
Common Stock purchased by them, may be deemed to be underwriting
commissions or discounts under the Securities Act. Selling
securityholders who are deemed to be &#147;underwriters&#148;
within the meaning of Section&nbsp;2(11) of the Securities Act
will be subject to the prospectus delivery requirements of the
Securities Act. To the extent the selling securityholders may be
deemed to be &#147;underwriters,&#148; they may be subject to
statutory liabilities, including, but not limited to,
Sections&nbsp;11, 12 and 17 of the Securities Act.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, in connection with any resales of
Notes, any broker-dealer who acquired the Notes for its own
account as a result of market-making activities or other trading
activities must deliver a prospectus meeting the requirements of
the Securities Act. Broker-dealers may fulfill their prospectus
delivery require-
</FONT>

<P align="center"><FONT size="2">31
</FONT>

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<DIV align="left">
<FONT size="2">ments with respect to the Notes (other than a
resale of an unsold allotment from the original sale of the
outstanding Notes) with this prospectus. In addition, all
securityholders effecting transactions in the Notes may be
required to deliver a prospectus and any and all supplements or
amendments thereto.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to the registration rights agreement
that has been filed as an exhibit to the registration statement
of which this prospectus is a part, we have agreed to indemnify
each selling securityholder, and each selling securityholder has
agreed to indemnify us and each other selling securityholder
against certain liabilities arising under the Securities Act.
The selling securityholders may indemnify any broker-dealer that
participates in transactions involving the sale of the Notes or
shares of Common Stock against certain liabilities, including
liabilities arising under the Securities Act, as amended.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In order to comply with the securities laws of
some states, if applicable, the Notes and the Common Stock
issuable upon conversion of the Notes may be sold in these
jurisdictions only through registered or licensed brokers or
dealers. In addition, in some states the Notes and Common Stock
issuable upon conversion of the Notes may not be sold unless
they have been registered or qualified for sale or an exemption
from registration or qualification requirements is available and
is complied with.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The selling securityholders and any other persons
participating in such distribution will be subject to the
Exchange Act. The Exchange Act rules include, without
limitation, Regulation&nbsp;M, which may limit the timing of
purchases and sales of the Notes and the underlying Common Stock
by the selling securityholders and any other such person. In
addition, Regulation&nbsp;M of the Exchange Act may restrict the
ability of any person engaged in the distribution of the Notes
and the underlying Common Stock to engage in market-making
activities with respect to the particular Notes and the
underlying Common Stock being distributed for a period of up to
five business days prior to the commencement of such
distribution. This may affect the marketability of the Notes and
the underlying Common Stock and the ability of any person or
entity to engage in market-making activities with respect to the
Notes and the underlying Common Stock.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We will use commercially reasonable efforts to
maintain the effectiveness of the shelf registration statement
until the earliest of:
</FONT>
<P>

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    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

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    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">all securities covered by the shelf registration
    statement have been sold pursuant to the shelf registration
    statement or Rule&nbsp;144;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the expiration of the applicable holding period
    with respect to the Notes and the underlying Common Stock under
    Rule&nbsp;144(k) under the Securities Act or any successor
    provision; or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the Notes and the underlying Common Stock have
    ceased to be outstanding (whether as result of repurchase and
    cancellation, conversion or otherwise).
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">32
</FONT>

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<!-- link1 "DESCRIPTION OF NOTES" -->
<DIV align="left"><A NAME="009"></A></DIV>

<P align="center">
<B><FONT size="2">DESCRIPTION OF NOTES</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We issued the Notes under an indenture, dated as
of October&nbsp;31, 2003, between us and The Bank of New York,
as trustee.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following description is a summary of the
material provisions of the Notes, the indenture and the
registration rights agreement. It does not purport to be
complete. We urge you to read the indenture because the
indenture, and not this description, defines your rights as a
holder of the Notes. You should refer to all the provisions of
the indenture and the registration rights agreement, including
the definitions of certain terms used in the those agreements.
The terms of the Notes include those stated in the indenture and
those made part of the indenture by reference to the Trust
Indenture Act of 1939, as amended. The indenture including the
form of Note contained therein, and the registration rights
agreement referred to below, are specifically incorporated
herein by reference. Copies of these documents are available to
you as set forth under &#147;Where You Can Find More
Information.&#148;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As used in this &#147;Description of Notes&#148;
section, references to &#147;we,&#148; &#147;our&#148; or
&#147;us&#148; refer solely to JDS Uniphase Corporation and not
to our subsidiaries.
</FONT>

<P align="left">
<B><FONT size="2">General</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Notes are our senior unsecured debt and rank
on parity with all of our other existing and future senior
unsecured debt and prior to all of our subordinated debt. The
Notes are convertible into Common Stock, as described more fully
under &#147;Conversion of Notes&#148; below.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Notes are limited to $475,000,000 aggregate
principal amount. The Notes are issued only in denominations of
$1,000 and multiples of $1,000. The Notes mature on
November&nbsp;15, 2010, unless earlier converted or repurchased.
We will not pay interest on the Notes unless specified defaults
under the registration rights agreement occur, nor does the
principal amount of the Notes accrete. We may, without the
consent of the holders, issue additional Notes under the
indenture with the same terms and with the same CUSIP numbers as
the Notes offered hereby in an unlimited aggregate principal
amount, provided that such additional Notes must be part of the
same issue as the Notes offered hereby for U.S. federal income
tax purposes. We may also from time to time repurchase Notes in
open market purchases or negotiated transactions without prior
notice to holders.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Neither we nor any of our subsidiaries are
subject to any financial covenants under the indenture. In
addition, neither we nor any of our subsidiaries are restricted
under the indenture from paying dividends, incurring debt, or
issuing or repurchasing our securities.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The holders of the Notes are not afforded
protection under the indenture in the event of a highly
leveraged transaction or a change in control of us except to the
extent described under &#147;Repurchase at Option of the Holder
Upon a Designated Event&#148; below.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We maintain an office in the City of New York
where the Notes may be presented for registration, transfer,
exchange, repurchase or conversion. This office is initially an
office or agency of the trustee.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Except under limited circumstances described
below, the Notes are issued only in fully registered book-entry
form and are represented by one or more global Notes. There is
no service charge for registration of transfer or exchange
Notes. We may, however, require holders to pay a sum to cover
any tax or other governmental charge payable in connection with
certain transfers or exchanges.
</FONT>

<P align="left">
<B><FONT size="2">Conversion of Notes</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Holders of the Notes may convert any Notes or
portions of the Notes, in whole or in part, into Common Stock
prior to the close of business on the final maturity date of the
Notes, subject to prior repurchase of the Notes, only under the
following circumstances:
</FONT>
<P>

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    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">upon satisfaction of a market price condition;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">upon satisfaction of a trading price condition;
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">33
</FONT>

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    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

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    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">upon notice of redemption; or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">upon specified corporate transactions.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The number of shares of Common Stock holders of
Notes will receive upon conversion of their Notes will be
determined by multiplying the number of $1,000 principal amount
of Notes that are converted by the conversion rate on the date
of conversion. A holder of a Note may convert the Notes in part
so long as such part is $1,000 principal amount or an integral
multiple of $1,000.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If we call Notes for redemption, a holder of
Notes may convert the Notes only until the close of business on
the business day immediately preceding the redemption date
unless we fail to pay the redemption price. If a holder of Notes
has submitted the Notes for repurchase upon a designated event,
a holder of Notes may convert the Notes only if that holder
withdraws the repurchase election made by that holder.
Similarly, if a holder of Notes exercises the option to require
us to repurchase those Notes other than upon a designated event,
those Notes may be converted only if that holder withdraws its
election to exercise the option in accordance with the terms of
the indenture.
</FONT>

<DIV>&nbsp;</DIV>

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    <TD></TD>
    <TD>
    <B><I><FONT size="2">Conversion Upon Satisfaction of Market
    Price Condition</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A holder of Notes may surrender its Notes for
conversion into our Common Stock prior to close of business on
the maturity date during any fiscal quarter commencing after
December&nbsp;31, 2003 if the closing sale price of our Common
Stock exceeds 110% of the conversion price for at least 20
trading days in the 30 consecutive trading days ending on the
last trading day of the preceding fiscal quarter. A holder of
Notes may also surrender its Notes for conversion into our
Common Stock if the closing sale price of our Common Stock
exceeds 110% of the conversion price on any date after
November&nbsp;15, 2008 and at all times thereafter.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The closing sale price of our Common Stock on any
date means the closing per share sale price (or if no closing
sale price is reported, the average of the bid and ask prices
or, if more than one in either case, the average of the average
bid and the average ask prices) on such date as reported in
composite transactions for the principal United States
securities exchange on which our Common Stock is traded or, if
our Common Stock is not listed on a United States national or
regional securities exchange, as reported by the Nasdaq System
or by the National Quotation Bureau Incorporated.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The conversion price as of any day will equal
$1,000 divided by the number of shares of Common Stock issuable
upon a conversion of a Note.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Conversion Upon Satisfaction of Trading
    Price Condition</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A holder of Notes may surrender its Notes for
conversion into our Common Stock prior to maturity during the
five business day period after any five consecutive trading day
period in which the &#147;trading price&#148; per $1,000
principal amount of Notes, as determined following a request by
a holder of Notes in accordance with the procedures described
below, for each day of that period was less than 98% of the
product of the closing sale price of our Common Stock and the
conversion rate (the &#147;98% Trading Exception&#148;);
provided that, if on the date of any conversion pursuant to the
98% Trading Exception the closing sale price of our Common Stock
is greater than the conversion price, then a holder of Notes
will receive, in lieu of Common Stock based on the conversion
rate, cash or Common Stock or a combination of cash and Common
Stock, at our option, with a value equal to the principal amount
of such Notes (a &#147;Principal Value Conversion&#148;). If a
holder of Notes surrenders its Notes for conversion and it is a
Principal Value Conversion, we will notify that holder by the
second trading day following the date of conversion whether we
will pay that holder all or a portion of the principal amount in
cash, Common Stock or a combination of cash and Common Stock,
and in what percentage. Any Common Stock delivered upon a
Principal Value Conversion will be valued at the greater of the
conversion price on the conversion date and the applicable stock
price (as defined below) as of the conversion date. We will pay
the holder of Notes any portion of the principal amount to be
paid in cash and deliver Common Stock with respect to any
portion of the principal amount to be paid in Common Stock, no
later than the third business day following the determination of
the applicable stock price. The &#147;applicable stock
price&#148; means, in respect of a date of determination, the
average of the closing sales price per share of
</FONT>

<P align="center"><FONT size="2">34
</FONT>

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<DIV align="left">
<FONT size="2">Common Stock over the five-trading day period
starting the third trading day following such date of
determination.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The &#147;trading price&#148; of the Notes on any
date of determination means the average of the secondary market
bid quotations obtained by the trustee for $10,000,000 principal
amount of the Notes at approximately 3:30&nbsp;p.m., New York
City time, on such determination date from three independent
nationally recognized securities dealers we select; <I>provided
</I>that, if three such bids cannot reasonably be obtained by
the trustee but two such bids are obtained, then the average of
the two bids shall be used, and if only one such bid can
reasonably be obtained by the trustee, that one bid shall be
used. If the trustee cannot reasonably obtain at least one bid
for $10,000,000 principal amount of the Notes from a nationally
recognized securities dealer, then the trading price per $1,000
principal amount of Notes will be deemed to be less than 98% of
the product of the closing sale price of our Common Stock and
the number of shares issuable upon conversion of $1,000
principal amount of the Notes.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In connection with any conversion upon
satisfaction of the above trading price condition, the trustee
shall have no obligation to determine the trading price of the
Notes unless we have requested such determination; and we shall
have no obligation to make such request unless the holder of the
Notes provides us with reasonable evidence that the trading
price per $1,000 principal amount of Notes would be less than
98% of the product of the closing sale price of our Common Stock
and the number of shares of Common Stock issuable upon
conversion of $1,000 principal amount of the Notes. At such
time, we shall instruct the trustee to determine the trading
price of the Notes beginning on the next trading day and on each
successive trading day until the trading price per $1,000
principal amount of Notes is greater than or equal to 98% of the
product of the closing sale price of our Common Stock and the
number of shares issuable upon conversion of $1,000 principal
amount of the Notes.
</FONT>

<DIV>&nbsp;</DIV>

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    <TD width="3%"></TD>
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</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Conversion Upon Notice of
    Redemption</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If we call the Notes for redemption, a holder of
Notes may convert the Notes until the close of business on the
business day immediately preceding the redemption date, after
which time that holder&#146;s right to convert will expire
unless we default in the payment of the redemption price.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Conversion Upon Specified Corporate
    Transactions</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If we elect to:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">distribute to all holders of our Common Stock
    certain rights entitling them to purchase, for a period expiring
    within 45&nbsp;days, our Common Stock at less than the current
    market price (measured by averaging the closing prices for the
    10 preceding trading days); or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">distribute to all holders of our Common Stock,
    assets, debt securities or certain rights to purchase our
    securities, which distribution has a per share value exceeding
    5% of the closing sale price of our Common Stock on the day
    preceding the declaration date for such distribution;
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">we must notify each holder of Notes at least
20&nbsp;days prior to the ex-dividend date for such
distribution. Once we have given such notice, a holder of Notes
may surrender its Notes for conversion at any time until the
earlier of close of business on the business day prior to the
ex-dividend date or any announcement by us that such
distribution will not take place. No adjustment to a holder of
Notes&#146; ability to convert will be made if that holder will
otherwise participate in the distribution without conversion.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, if we are a party to a
consolidation, merger, binding share exchange or sale of all or
substantially all of our assets, in each case pursuant to which
our Common Stock would be converted into cash, securities or
other property, a holder of Notes may surrender its Notes for
conversion at any time from and after the date which is
15&nbsp;days prior to the anticipated effective date of the
transaction until and including the date which is 15&nbsp;days
after the actual date of such transaction. If we are a party to
a consolidation, merger, binding share exchange or sale of all
or substantially all of our assets, in each case pursuant to
which our Common Stock is converted into cash, securities, or
other property, then at the effective time of the transaction, a
holder of Notes&#146; right to convert a Note into our Common
Stock will be changed into a right to
</FONT>

<P align="center"><FONT size="2">35
</FONT>

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<DIV align="left">
<FONT size="2">convert it into the kind and amount of cash,
securities and other property which holders of the Notes would
have received if those holders had converted their Notes
immediately prior to the transaction. If the transaction also
constitutes a designated event, a holder of Notes can require us
to repurchase all or a portion of their Notes as described under
&#147;Repurchase At Option of the Holder Upon a Designated
Event.&#148;
</FONT>
</DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Conversion Procedures</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The initial conversion rate for the Notes is
202.4291&nbsp;shares of Common Stock per $1,000 principal amount
of Notes, subject to adjustment as described below. We will not
issue fractional shares of Common Stock upon conversion of
Notes. Instead, we will pay cash, in lieu of fractional shares,
equal to the closing price of the Common Stock on the trading
day prior to the conversion date. Consequently, our delivery to
a holder of Notes of the fixed number of shares of our Common
Stock into which the Notes are convertible, together with the
cash payment, if any, in lieu of a fractional share of our
Common Stock, will be deemed to satisfy our obligation to pay
the principal amount of the Notes.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">To convert the Notes into Common Stock a holder
of Notes must:
</FONT>
<P>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">complete and manually sign the conversion notice
    on the back of the Note or facsimile of the conversion notice
    and deliver this notice to the conversion agent;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">surrender the Note to the conversion agent;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">if required, furnish appropriate endorsements and
    transfer documents; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">if required, pay all transfer or similar taxes.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The date a holder of Notes complies with these
requirements is the conversion date under the indenture.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We will adjust the conversion rate if any of the
following events occurs:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(1)&nbsp;we issue Common Stock as a dividend or
    distribution on our Common Stock;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(2)&nbsp;we issue to all holders of Common Stock
    certain rights or warrants to purchase our Common Stock at less
    than the sale price of our Common Stock on the business day
    immediately preceding the time of announcement of such issuance,
    which rights or warrants are exercisable for not more than
    60&nbsp;days;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(3)&nbsp;we subdivide or combine our Common Stock;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(4)&nbsp;we distribute to all holders of our
    Common Stock, shares of our capital stock, evidences of
    indebtedness or assets, including cash or securities but
    excluding:
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="1%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">rights or warrants specified above; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">dividends or distributions specified above.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">If we distribute capital stock of, or similar
    equity interests in, a subsidiary or other business unit of
    ours, the conversion rate will be adjusted based on the market
    value of the securities so distributed relative to the market
    value of our Common Stock, in each case based on the average
    closing sales prices of those securities for the 10 trading days
    commencing on and including the fifth trading day after the date
    on which &#147;ex-dividend trading&#148; commences for such
    distribution on The Nasdaq National Market or such other
    national or regional exchange or market on which the securities
    are then listed or quoted.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">If we distribute cash, then the conversion rate
    shall be increased so that it equals the rate determined by
    multiplying the conversion rate in effect on the record date
    with respect to the cash distribution by a fraction, the
    numerator of which shall be the current market price of a share
    of our Common Stock on the record date, and the denominator of
    which shall be the current market price of a share on the record
    date less the amount of the distribution per share.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">&#147;Current market price&#148; means the
    average of the daily closing sale prices per share of Common
    Stock for the ten consecutive trading days ending on the earlier
    of the date of determination and the day
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">36
</FONT>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">before the &#147;ex&#148; date with respect to
    the distribution requiring such computation. As used in the
    definition of current market price, the term &#147;ex&#148;
    date, when used with respect to any distribution, means the
    first date on which the Common Stock trades, regular way, on the
    relevant exchange or in the relevant market from which the
    closing sale price was obtained without the right to receive
    such distribution; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(5)&nbsp;we or one of our subsidiaries makes a
    payment in respect of a tender offer or exchange offer for our
    Common Stock to the extent that the cash and value of any other
    consideration included in the payment per share of our Common
    Stock exceeds the current market price per share of our Common
    Stock on the trading day next succeeding the last date on which
    tenders or exchanges may be made pursuant to such tender or
    exchange offer.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We will not make any adjustment if holders of
Notes may participate in the transactions described above.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">To the extent that we have a rights plan in
effect upon conversion of the Notes into Common Stock, a holder
of Notes will receive, in addition to the Common Stock, the
rights under the rights plan unless the rights have separated
from the Common Stock at the time of conversion, in which case
the conversion rate will be adjusted as if we distributed to all
holders of our Common Stock, shares of our capital stock,
evidences of indebtedness or assets as described above, subject
to readjustment in the event of the expiration, termination or
redemption of such rights.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the event of:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">any reclassification of our Common Stock;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">a consolidation, merger or combination involving
    us; or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">a sale or conveyance to another person or entity
    of all or substantially all of our property and assets;
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">in which holders of our Common Stock would be
entitled to receive stock, other securities, other property,
assets or cash for their Common Stock, upon conversion of the
Notes a holder thereof will be entitled to receive the same type
of consideration which it would have been entitled to receive if
it had converted the Notes into our Common Stock immediately
prior to any of these events.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A holder of Notes may in certain situations be
deemed to have received a distribution subject to United States
federal income tax as a dividend in the event of any taxable
distribution to holders of Common Stock or in certain other
situations requiring a conversion rate adjustment. See
&#147;Material United States Federal Tax Considerations.&#148;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We may, from time to time, increase the
conversion rate for a period of at least 20&nbsp;days if our
board of directors has made a determination that this increase
would be in our best interests. Any such determination by our
board will be conclusive. In addition, we may increase the
conversion rate if our board of directors deems it advisable to
avoid or diminish any income tax to holders of Common Stock
resulting from any stock or rights distribution. See
&#147;Material United States Federal Tax Considerations.&#148;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We will not be required to make an adjustment in
the conversion rate unless the adjustment would require a change
of at least 1% in the conversion rate. However, we will carry
forward any adjustments that are less than 1% of the conversion
rate. Except as described above in this section, we will not
adjust the conversion rate for any issuance of our Common Stock
or convertible or exchangeable securities or rights to purchase
our Common Stock or convertible or exchangeable securities.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Any such increases in the conversion rate by our
board of directors shall not, without the approval of our
stockholders, as required by Rule&nbsp;4310 of the Marketplace
Rules of The Nasdaq Stock Market, result in the sale or issuance
of 20% or more of the shares of our Common Stock, or 20% or more
of the voting power, outstanding on October&nbsp;31, 2003.
</FONT>

<P align="center"><FONT size="2">37
</FONT>

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<P align="left">
<B><FONT size="2">Payment Upon Conversion</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Upon conversion, we may choose to deliver either
cash in lieu of shares of our Common Stock, shares of our Common
Stock or a combination of cash and shares of our Common Stock,
as described below.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Conversion On or Prior to the Final Notice
    Date</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the event that we receive from a holder of
Notes a notice of conversion on or prior to the day that is five
days prior to maturity (the final notice date), and we choose to
satisfy our obligation upon conversion (the conversion
obligation) by cash settlement or combined settlement, we will
notify the holder electing to convert through the trustee of the
dollar amount to be satisfied in cash at any time on or before
the date that is two business days following receipt of the
holder&#146;s notice of conversion (cash settlement notice
period). Share settlement will automatically apply if we do not
notify a holder of Notes that we have chosen another settlement
method.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If we timely elect cash settlement or combined
settlement, the holder may retract the conversion notice at any
time during the two business days after notice that we intend to
satisfy all or part of the conversion price in cash (the
conversion retraction period). No such retraction can be made
(and a conversion notice shall be irrevocable) if we do not
elect to deliver cash in lieu of shares of our Common Stock
(other than cash in lieu of fractional shares). If the
conversion notice has not been retracted, then cash settlement
or combined settlement will occur on the business day following
the final trading day of the five trading-day period beginning
on the first trading day after the final day of the conversion
retraction period (the cash settlement averaging period),
provided however, that the conversion shall be deemed to have
occurred as described above under Conversion Procedures. Because
the market price of our Common Stock will be determined prior to
the date of settlement, if we elect a combined settlement or
settlement in shares of our Common Stock, Note holders bear the
market risk that our Common Stock will decline in value between
the date the market price is calculated and the settlement date.
Settlement amounts will be computed as follows:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">If we elect to satisfy the conversion obligation
    in shares of Common Stock, we will deliver to the electing
    holder a number of shares of Common Stock equal to (1)&nbsp;the
    aggregate principal amount of Notes to be converted divided by
    1,000, multiplied by (2)&nbsp;the conversion rate.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">If we elect to satisfy the conversion obligation
    in cash, we will deliver to the electing holder cash in an
    amount equal to the product of:
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">a number equal to (1)&nbsp;the aggregate
    principal amount of Notes to be converted divided by 1,000,
    multiplied by (2)&nbsp;the conversion rate, and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the average sale price of our shares of Common
    Stock during the cash settlement averaging period.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">If we elect to satisfy a portion of the
    conversion obligation in cash (the partial cash amount) and a
    portion in share of our Common Stock, we will deliver to the
    electing holder such partial cash amount plus a number of shares
    equal to:
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the cash settlement amount as set forth above
    minus such partial cash amount divided by
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the average sale price of our shares of Common
    Stock during the cash settlement averaging period.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If a holder exercises its right to require us to
repurchase its Notes as described under &#147;Repurchase at
Option of the Holder Upon a Designated Event,&#148; such holder
may convert its Notes as provided above only if it withdraws its
repurchase notice and converts its Notes prior to the close of
business on the business day immediately preceding the
applicable repurchase date.
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    <B><I><FONT size="2">Conversion After the Final Notice
    Date</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the event that we receive a notice of
conversion from a holder of Notes after the final notice date,
and we choose to satisfy the conversion obligation by cash
settlement or combined settlement, we will notify that holder
through the trustee and will tell that holder what percentage of
such settlement will be in the form of cash and what percentage,
if any, will be in the form of shares of our Common Stock. Share
settlement will
</FONT>

<P align="center"><FONT size="2">38
</FONT>

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<DIV align="left">
<FONT size="2">apply automatically if we do not notify a holder
of Notes that we have chosen another settlement method.
Settlement amounts will be computed and settlement dates will be
determined in the same manner as set forth above under
&#147;Conversion On or Prior to the Final Notice Date&#148;
except that the cash settlement averaging period shall be the
five trading-day period beginning on the first trading day after
the final day of the conversion retraction period. If we timely
elect cash settlement or combined settlement, the holder may
retract the conversion notice at any time during the conversion
retraction period. No such retraction can be made (and a
conversion notice shall be irrevocable) if we do not elect cash
settlement or combined settlement (other than cash in lieu of
fractional shares). If the conversion notice has not been
retracted, settlement will occur on the business day following
the final day of such cash settlement averaging period.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">Optional Redemption by Us</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Beginning November&nbsp;15, 2008, we may redeem
the Notes in whole or in part for an amount in cash equal to
100% of the principal amount of the Notes, plus accrued and
unpaid additional interest, if any.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are required to give notice of redemption by
mail to holders not more than 60 but not less than 30&nbsp;days
prior to the redemption date.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If less than all of the outstanding Notes are to
be redeemed, the trustee will select the Notes to be redeemed in
principal amounts of $1,000 or multiples of $1,000 by lot, pro
rata or by another method the trustee considers fair and
appropriate. If a portion of the Notes is selected by a holder
for partial redemption and a holder of Notes converts a portion
of its Notes, the converted portion will be deemed to be of the
portion selected for redemption.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We will notify the noteholders if we redeem the
Notes.
</FONT>

<P align="left">
<B><FONT size="2">Repurchase at Option of the Holder</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A holder of Notes has the right to require us to
repurchase the Notes on November&nbsp;15, 2008. We will be
required to repurchase for cash any outstanding Note for which a
holder of Notes delivers a written repurchase notice to the
paying agent. This notice must be delivered during the period
beginning at any time from the opening of business on the date
that is 20 business days prior to the repurchase date until the
close of business on the repurchase date. If a repurchase notice
is given and withdrawn during that period, we will not be
obligated to repurchase the Notes. Our repurchase obligation
will be subject to certain additional conditions.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The repurchase price payable for a Note will be
equal to 100% of the principal amount of the Notes. The paying
agent initially will be the trustee.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The repurchase notice must state:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(1)&nbsp;if certificated Notes have been issued,
    the Note certificate numbers (or, if the Notes are not
    certificated, a repurchase notice made by a holder of Notes must
    comply with appropriate DTC procedures);
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(2)&nbsp;the portion of the principal amount of
    Notes to be repurchased, which must be in $1,000 multiples; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(3)&nbsp;that the Notes are to be repurchased by
    us pursuant to the applicable provisions of the Notes and the
    indenture
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A holder of Notes may withdraw any written
repurchase notice by delivering a written notice of withdrawal
to the paying agent prior to the close of business of the
repurchase date. The withdrawal notice must state:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the principal amount of the withdrawn Notes;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">if certificated Notes have been issued, the
    certificate numbers of the withdrawn Notes (or, if the Notes are
    not certificated, the withdrawal notice must comply with
    appropriate DTC procedures); and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the principal amount, if any, which remains
    subject to the repurchase notice.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">39
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We must give notice of an upcoming repurchase
date to all Note holders not less than 20 business days prior to
the repurchase date at their addresses shown in the register of
the registrar. We will also give notice to beneficial owners as
required by applicable law. This notice will state, among other
things, the procedures that holders must follow to require us to
repurchase their Notes.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Payment of the repurchase price for a Note for
which a repurchase notice has been delivered and not withdrawn
is conditioned upon book-entry transfer or delivery of the Note,
together with necessary endorsements, to the paying agent at its
office in the Borough of Manhattan, The City of New York, or any
other office of the paying agent, at any time after delivery of
the repurchase notice. Payment of the repurchase price for the
Note will be made promptly following the later of the repurchase
date and the time of book-entry transfer or delivery of the
Note. If the paying agent holds money sufficient to pay the
repurchase price of the Note on the business day following the
repurchase date, then, on and after the date:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the Note will cease to be outstanding; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">all other rights of the holder will terminate,
    other than the right to receive the repurchase price upon
    delivery of the Note.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This will be the case whether or not book-entry
transfer of the Note has been made or the Note has been
delivered to the paying agent.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our ability to repurchase Notes with cash may be
limited by the terms of our then-existing borrowing agreements.
Even though we become obligated to repurchase any outstanding
Note on a repurchase date, we may not have sufficient funds to
pay the repurchase price on that repurchase date.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We will comply with the provisions of
Rule&nbsp;13e-4 and any other rules under the Exchange Act that
may be applicable. We will file a Schedule&nbsp;TO or any other
schedule required in connection with any offer by us to
repurchase the Notes.
</FONT>

<P align="left">
<B><FONT size="2">Repurchase at Option of the Holder Upon a
Designated Event</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If a designated event occurs at any time prior to
the maturity of the Notes, a holder of Notes may require us to
repurchase its Notes, in whole or in part, on a repurchase date
that is 30&nbsp;days after the date of our notice of the
designated event. The Notes will be repurchased in integral
multiples of $1,000 principal amount.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We will repurchase the Notes at a price equal to
the principal amount plus accrued but unpaid additional
interest, as described below, if any, through the repurchase
date.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We may, at our option, elect to pay the
repurchase price in cash, in shares of our Common Stock or, if
applicable, the surviving corporation&#146;s Common Stock or in
any combination of cash and such Common Stock.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If we elect to pay the repurchase price, in whole
or in part, in shares of our Common Stock or, if applicable, the
surviving corporation&#146;s Common Stock, the number of shares
to be delivered in exchange for the portion of the repurchase
price to be paid in our Common Stock will be equal to that
portion of the repurchase price divided by the closing sale
price of such Common Stock for the five trading days ending on
the third business day prior to the applicable repurchase date
(appropriately adjusted to take into account the occurrence of
certain events that would result in an adjustment of the
conversion rate with respect to such Common Stock). We will not,
however, deliver fractional shares in repurchases using shares
of such Common Stock as consideration. Note holders who would
otherwise be entitled to receive fractional shares will instead
receive cash in an amount equal to the market price of a share
of such Common Stock multiplied by such fraction.
</FONT>

<P align="center"><FONT size="2">40
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We will mail to all record holders a notice of a
designated event within 30&nbsp;days after it has occurred. We
are also required to deliver to the trustee a copy of the
designated event notice. This notice will state, among other
things:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">whether we will pay the repurchase price of the
    Notes in cash, shares of our Common Stock or, if applicable, the
    surviving corporation&#146;s Common Stock, or both cash and such
    Common Stock (in which case the relative percentages will be
    specified);
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">if we elect to pay all or a portion of the
    repurchase price in shares of our Common Stock or, if
    applicable, the surviving corporation&#146;s Common Stock, the
    method by which we are required to calculate market price of the
    Common Stock; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the procedures that holders must follow to
    require us to repurchase their Notes.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If a holder of Notes elects to require us to
repurchase its Notes, that holder must deliver to us or our
designated agent, on or before the 30th&nbsp;day after the date
of our designated event notice, a repurchase notice and any
Notes to be repurchased, duly endorsed for transfer. The
repurchase notice must state:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(1)&nbsp;if certificated Notes have been issued,
    the Note certificate numbers (or, if the Notes are not
    certificated, the repurchase notice must comply with appropriate
    DTC procedures);
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(2)&nbsp;the portion of the principal amount of
    Notes to be repurchased, which must be in $1,000 multiples; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(3)&nbsp;that the Notes are to be repurchased by
    us pursuant to the applicable provisions of the Notes and the
    indenture.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A holder of Notes may withdraw any written
repurchase notice by delivering a written notice of withdrawal
to the paying agent prior to the close of business on the
repurchase date. The withdrawal notice must state:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the principal amount of the withdrawn Notes;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">if certificated Notes have been issued, the
    certificate numbers of the withdrawn Notes (or, if the Notes are
    not certificated, the withdrawal notice must comply with
    appropriate DTC procedures); and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the principal amount, if any, which remains
    subject to the repurchase notice.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We will promptly pay the repurchase price for
Notes surrendered for repurchase following the repurchase date.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Because the market price of our Common Stock will
be determined prior to the applicable repurchase date, Note
holders bear the market risk that our Common Stock will decline
in value between the date the market price is calculated and the
repurchase date.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A &#147;designated event&#148; will be deemed to
have occurred upon a fundamental change or a termination of
trading.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A &#147;fundamental change&#148; is any
transaction or event (whether by means of an exchange offer,
liquidation, tender offer, consolidation, merger, combination,
reclassification, recapitalization or otherwise) in connection
with which all or substantially all of our Common Stock is
exchanged for, converted into, acquired for or constitutes
solely the right to receive, consideration which is not all or
substantially all Common Stock or American Depositary Shares
that:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">is listed on, or immediately after the
    transaction or event will be listed on, a United States national
    securities exchange, or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">is approved, or immediately after the transaction
    or event will be approved, for quotation on The Nasdaq National
    Market or any similar United States system of automated
    dissemination of quotations of securities prices.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">41
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A &#147;termination of trading&#148; will be
deemed to have occurred if our Common Stock (or other Common
Stock into which the Notes are then convertible) is neither
listed for trading on a United States national securities
exchange nor approved for trading on The Nasdaq National Market.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We will comply with any applicable provisions of
Rule&nbsp;13e-4 and any other tender offer rules under the
Exchange Act in the event of a designated event.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">These designated event repurchase rights could
discourage a potential acquirer. However, this designated event
repurchase feature is not the result of management&#146;s
knowledge of any specific effort to obtain control of us by
means of a merger, tender offer or solicitation, or part of a
plan by management to adopt a series of anti-takeover
provisions. The term &#147;designated event&#148; is limited to
specified transactions and may not include other events that
might adversely affect our financial condition or business
operations. Our obligation to offer to repurchase the Notes upon
a designated event would not necessarily afford a holder of
Notes protection in the event of a highly leveraged transaction,
reorganization, merger or similar transaction involving us.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We may be unable to repurchase the Notes for cash
if a designated event occurs. If a designated event were to
occur, we may not have enough funds to pay the repurchase price
for all tendered Notes. Any future credit agreements or other
agreements relating to our indebtedness may contain provisions
prohibiting repurchase of the Notes under certain circumstances,
or expressly prohibit our repurchase of the Notes upon a
designated event or may provide that a designated event
constitutes an event of default under that agreement. If a
designated event occurs at a time when we are prohibited from
repurchasing Notes, we could seek the consent of our lenders to
repurchase the Notes or attempt to refinance this debt. If we do
not obtain consent, we would not be permitted to repurchase the
Notes. Our failure to repurchase tendered Notes would constitute
an event of default under the indenture, which might constitute
a default under the terms of our other indebtedness.
</FONT>

<P align="left">
<B><FONT size="2">Merger and Sale of Assets by Us</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The indenture provides that we may not
consolidate with or merge with or into any other person or
convey, transfer or lease its properties and assets
substantially as an entirety to another person, unless among
other items:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">we are the surviving person, or the resulting,
    surviving or transferee person, if other than us is organized
    and existing under the laws of the United States, any state
    thereof or the District of Columbia;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the successor person assumes all of our
    obligations under the Notes and the indenture; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">we or such successor person will not be in
    default under the indenture immediately after the transaction.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">When such a person assumes our obligations in
such circumstances, subject to certain exceptions, we shall be
discharged from all obligations under the Notes and the
indenture.
</FONT>

<P align="left">
<B><FONT size="2">Ranking</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Notes are our senior unsecured obligations
and rank equally in right of payment with all of our other
senior unsecured and unsubordinated indebtedness. The Notes rank
senior to any of our subordinated indebtedness. At
September&nbsp;30, 2003, we had no material amount of
outstanding debt for borrowed money.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Because the creditors of our subsidiaries
generally would have a right to receive payment superior to our
right to receive payment from the assets of our subsidiaries,
the holders of the Notes are effectively subordinated to the
creditors of our subsidiaries. If we were to liquidate or
reorganize, a holder of Notes&#146; right to participate in any
distribution of our subsidiaries&#146; assets is necessarily
subject to the claims of the subsidiaries&#146; creditors. As of
September&nbsp;30, 2003, our subsidiaries had outstanding
indebtedness of approximately $6.0&nbsp;million, excluding
intercompany indebtedness and trade payables.
</FONT>

<P align="center"><FONT size="2">42
</FONT>

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<P align="left">
<B><FONT size="2">Events of Default; Notice and Waiver</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following are events of default under the
indenture:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">we fail to pay the principal amount of the Notes
    when due upon redemption, repurchase or otherwise on the Notes;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">we fail to pay additional interest, if any, on
    the Notes, when due and such failure continues for a period of
    30&nbsp;days;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">we fail to perform or observe any of the
    covenants in the indenture for 60&nbsp;days after notice;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">any indebtedness for money borrowed by us or one
    of our significant subsidiaries (all or substantially all of the
    outstanding voting securities of which are owned, directly or
    indirectly, by us) in an outstanding principal amount in excess
    of $50&nbsp;million is not paid at final maturity or upon
    acceleration and such indebtedness is not discharged, or such
    default in payment or acceleration is not cured or rescinded
    within the period specified in such instrument; or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">certain events involving our bankruptcy,
    insolvency or reorganization.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The trustee may withhold notice to the holders of
the Notes of any default, except defaults in payment of
principal, premium or additional interest, if any, on the Notes.
However, the trustee must consider it to be in the interest of
the holders of the Notes to withhold this notice.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If an event of default occurs and is continuing,
the trustee or the holders of at least 25% in principal amount
of the outstanding Notes may declare the principal amount of the
Notes and additional interest, if any, on the outstanding Notes
to be immediately due and payable. In case of certain events of
bankruptcy or insolvency involving us, principal amount plus
additional interest, if any, on the Notes will automatically
become due and payable. However, if we cure all defaults, except
the nonpayment of the principal amount of the Notes plus
additional interest, if any, that became due as a result of the
acceleration, and meet certain other conditions, with certain
exceptions, this declaration may be cancelled and the holders of
a majority of the principal amount of outstanding Notes may
waive these past defaults.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Payments of redemption price, principal, premium,
if any, and additional interest on the Notes, if any, that are
not made when due will accrue interest at the annual rate of 1%
above the then-applicable interest rate from the required
payment date.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Subject to the trustee&#146;s duties in the case
of an event of default, the trustee will not be obligated to
exercise any of its rights or powers at the request of the
holders, unless the holders have offered to the trustee
reasonable indemnity. Subject to the indenture, applicable law
and the trustee&#146;s indemnification, the holders of a
majority in aggregate principal amount of the outstanding Notes
will have the right to direct the time, method and place of any
proceedings for any remedy available to the trustee.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">No holder of the Notes may pursue any remedy
under the indenture, except in the case of a default in the
payment of principal or additional interest (in respect of any
default in payment under a Note on or after the due date) on the
Notes, unless:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the holder has given the trustee written notice
    of an event of default;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the holders of at least 25% in principal amount
    of outstanding Notes make a written request, and offer
    reasonable indemnity, to the trustee to pursue the remedy;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the trustee does not receive an inconsistent
    direction from the holders of a majority in principal amount of
    the Notes; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the trustee fails to comply with the request
    within 60&nbsp;days after receipt.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">43
</FONT>

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<P align="left">
<B><FONT size="2">Modification and Waiver</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The consent of the holders of a majority in
principal amount of the outstanding Notes is required to modify
or amend the indenture. However, a modification or amendment
requires the consent of the holder of each outstanding Note if
it would:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">extend the fixed maturity of any Note;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">reduce the principal amount of, or additional
    interest, if any, payable on, any Note;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">reduce any amount payable upon redemption or
    repurchase of any Note;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">after the occurrence of a designated event,
    modify the provisions with respect to the purchase right of the
    holders upon a designated event in a manner adverse to holders;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">impair the right of a holder to institute suit
    for payment on any Note;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">change the currency in which any Note is payable;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">impair the right of a holder to convert any Note;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">reduce the quorum or voting requirements under
    the indenture;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">change any obligation of ours to maintain an
    office or agency in the places and for the purposes specified in
    the indenture;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">change the ranking of the Notes in a manner
    adverse to the holder of the Notes;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">subject to specified exceptions, modify certain
    of the provisions of the indenture relating to modification or
    waiver of provisions of the indenture; or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">reduce the percentage of Notes required for
    consent to any modification of the indenture.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are permitted to modify certain provisions of
the indenture without the consent of the holders of the Notes.
</FONT>

<P align="left">
<B><FONT size="2">Form, Denomination and Registration</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Notes are issued:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">in fully registered form; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">in denominations of $1,000 principal amount and
    integral multiples of $1,000.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Global Note, Book-Entry Form</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Notes are evidenced by one or more global
Notes, deposited and registered in the name of Cede&nbsp;&#38;
Co., as DTC&#146;s nominee. Except as set forth below, a global
Note may be transferred, in whole or in part, only to another
nominee of DTC or to a successor of DTC or its nominee.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Beneficial interests in a global Note may be held
through organizations that are participants in DTC, or
participants. Transfers between participants will be effected in
the ordinary way in accordance with DTC rules and will be
settled in clearing house funds. The laws of some states require
that certain persons take physical delivery of securities in
definitive form. As a result, the ability to transfer beneficial
interests in the global Note to such persons may be limited.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Beneficial interests in a global Note held by DTC
may be held only through participants, or certain banks,
brokers, dealers, trust companies and other parties that clear
through or maintain a custodial relationship with a participant,
either directly or indirectly, and when indirectly they are
called &#147;indirect participants&#148;. So long as
Cede&nbsp;&#38; Co., DTC&#146;s nominee, is the registered owner
of a global Note, Cede&nbsp;&#38; Co. for all purposes will be
</FONT>

<P align="center"><FONT size="2">44
</FONT>

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<DIV align="left">
<FONT size="2">considered the sole holder of such global Note.
Except as provided below, owners of beneficial interests in a
global Note will:
</FONT>
</DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">not be entitled to have certificates registered
    in their names;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">not receive physical delivery of certificates in
    definitive registered form; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">not be considered holders of the global Note.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We will pay interest, if any, and the repurchase
price of a global Note to Cede&nbsp;&#38; Co., as the registered
owner of the global Note, by wire transfer of immediately
available funds on the repurchase date, as the case may be.
Neither we, the trustee nor any paying agent will be responsible
or liable:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">for the records relating to, or payments made on
    account of, beneficial ownership interests in a global Note; or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">for maintaining, supervising or reviewing any
    records relating to the beneficial ownership interests.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Neither we, the trustee, registrar, paying agent
nor conversion agent will have any responsibility for the
performance by DTC or its participants or indirect participants
of their respective obligations under the rules and procedures
governing their operations. DTC has advised us that it will take
any action permitted to be taken by a holder of Notes, including
the presentation of Notes for conversion, only at the direction
of one or more participants to whose account with DTC interests
in the global Note are credited, and only in respect of the
principal amount of the Notes represented by the global Note as
to which the participant or participants has or have given such
direction.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">DTC has advised us that it is:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">a limited purpose trust company organized under
    the laws of the State of New York, and a member of the Federal
    Reserve System;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">a &#147;clearing corporation&#148; within the
    meaning of the Uniform Commercial Code; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">a &#147;clearing agency&#148; registered pursuant
    to the provisions of Section&nbsp;17A of the Exchange Act.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">DTC was created to hold securities for its
participants and to facilitate the clearance and settlement of
securities transactions between participants through electronic
book-entry changes to the accounts of its participants.
Participants include securities brokers, dealers, banks, trust
companies and clearing corporations and other organizations.
Some of the participants or their representatives, together with
other entities, own DTC. Indirect access to the DTC system is
available to others such as banks, brokers, dealers and trust
companies that clear through or maintain a custodial
relationship with a participant, either directly or indirectly.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">DTC has agreed to the foregoing procedures to
facilitate transfers of interests in a global Note among
participants. However, DTC is under no obligation to perform or
continue to perform these procedures, and may discontinue these
procedures at any time.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We will issue Notes in definitive certificate
form only if:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">DTC notifies us that it is unwilling or unable to
    continue as depositary or DTC ceases to be a clearing agency
    registered under the Securities and Exchange Act of 1934, as
    amended, and a successor depositary is not appointed by us
    within 90&nbsp;days;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">an event of default shall have occurred and the
    maturity of the Notes shall have been accelerated in accordance
    with the terms of the Notes and any holder shall have requested
    in writing the issuance of definitive certificated Notes; or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">we have determined in our sole discretion that
    Notes shall no longer be represented by global Notes.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">45
</FONT>

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<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Restrictions on Transfer,
    Legends</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Notes will be subject to transfer
restrictions as described below under &#147;Transfer
Restrictions&#148; and certificates for the Notes will bear a
legend to this effect.
</FONT>

<P align="left">
<B><FONT size="2">Registration Rights of the
Noteholders</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On October&nbsp;31, 2003, we entered into a
registration rights agreement with the initial purchasers.
Pursuant to the registration rights agreement, we have filed
with the SEC a shelf registration statement, of which this
prospectus is a part.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We will use commercially reasonable efforts to
keep that shelf registration statement effective until the
earliest of:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the date when all of the registrable securities
    have been sold pursuant to the shelf registration statement or
    Rule&nbsp;144;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the expiration of the holding period under
    Rule&nbsp;144(k) under the Securities Act, or any successor
    provision; or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the date when the Notes and the shares of Common
    Stock issuable upon conversion of the Notes have ceased to be
    outstanding (whether as result of repurchase and cancellation,
    conversion or otherwise).
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">When we use the term &#147;registrable
securities&#148; in this section, we are referring to the Notes
and the Common Stock issuable upon conversion of the Notes until
the earliest of:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the effective registration under the Securities
    Act and the resale of the securities in accordance with the
    registration statement;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the expiration of the holding period under
    Rule&nbsp;144(k) under the Securities Act; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the sale to the public pursuant to Rule&nbsp;144
    under the Securities Act, or any similar provision then in
    force, but not Rule&nbsp;144A.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We may suspend the use of this prospectus under
certain circumstances relating to pending corporate
developments, public filings with the SEC and similar events.
Any suspension period shall not:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">exceed 30&nbsp;days in any three-month period; or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">an aggregate of 90&nbsp;days for all periods in
    any 12-month period.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Notwithstanding the foregoing, we will be
permitted to suspend the use of the prospectus for up to
60&nbsp;days in any 3-month period under certain circumstances,
relating to possible acquisitions, financings or other similar
transactions.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We will be required to begin paying predetermined
&#147;additional interest&#148; if the shelf registration
statement is not filed within 90&nbsp;days after the closing
date or made effective within 180&nbsp;days after the closing
date, or if there is another registration default as described
in the registration rights agreement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Such interest, if any, will be paid semiannually
in arrears, with the first semiannual payment due on the first
May&nbsp;15 or November&nbsp;15 to occur after the date on which
such additional amounts begin to accrue, and will accrue at a
rate per year equal to:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">0.25% of the principal amount of a Note to and
    including the 90th&nbsp;day following such registration default;
    and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">0.50% of the principal amount of a Note from and
    after the 91st&nbsp;day following such registration default.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In no event will interest accrue at a rate per
year exceeding 0.50%. If a holder has converted some or all of
its Notes into shares of our Common Stock, and if those shares
of Common Stock continue to be registrable securities, the
holder will be entitled to receive equivalent amounts of
additional interest based on the
</FONT>

<P align="center"><FONT size="2">46
</FONT>

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<DIV align="left">
<FONT size="2">conversion price in effect during the period of
default. We will have no other liabilities for monetary damages
with respect to our registration obligations.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A holder who elects to sell registrable
securities pursuant to the registration statement of which this
prospectus is a part will be required to:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">be named as a selling stockholder herein or in a
    related prospectus supplement;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">deliver a prospectus to purchasers; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">be subject to the provisions of the registration
    rights agreement, including indemnification provisions.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under the registration rights agreement we have
agreed to:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">pay all expenses of the shelf registration
    statement;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">provide each registered holder copies of the
    prospectus;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">notify holders when the shelf registration
    statement has become effective; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">take other reasonable actions as are required to
    permit unrestricted resales of the registrable securities in
    accordance with the terms and conditions of the registration
    rights agreement.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We may file amendments to the shelf registration
statement, of which this prospectus is a part, as necessary to
permit holders of Notes to deliver prospectus to purchasers of
registrable securities, subject to our right to suspend the use
of the prospectus. This summary of the registration rights
agreement is not complete. This summary is subject to, and is
qualified in its entirety by reference to, all the provisions of
the registration rights agreement.
</FONT>

<P align="left">
<B><FONT size="2">Rule&nbsp;144A Information Request</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We will furnish to the holders or beneficial
holders of the Notes or the underlying Common Stock and
prospective purchasers, upon their request, the information, if
any, required under Rule&nbsp;144A(d) under the Securities Act
until such time as such securities are no longer
&#147;restricted securities&#148; within the meaning of
Rule&nbsp;144 under the Securities Act, assuming these
securities have not been owned by an affiliate of ours.
</FONT>

<P align="left">
<B><FONT size="2">Information Concerning the Trustee</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have appointed The Bank of New York, the
trustee under the indenture, as paying agent, conversion agent,
Note registrar and custodian for the Notes. The trustee or its
affiliates may provide banking and other services to us in the
ordinary course of their business.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The indenture contains certain limitations on the
rights of the trustee, if it or any of its affiliates is then
our creditor, to obtain payment of claims in certain cases or to
realize on certain property received on any claim as security or
otherwise. The trustee and its affiliates will be permitted to
engage in other transactions with us. However, if the trustee or
any affiliate continues to have any conflicting interest and a
default occurs with respect to the Notes, the trustee must
eliminate such conflict or resign.
</FONT>

<P align="center"><FONT size="2">47
</FONT>

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<!-- link1 "DESCRIPTION OF CAPITAL STOCK" -->
<DIV align="left"><A NAME="010"></A></DIV>

<P align="center">
<B><FONT size="2">DESCRIPTION OF CAPITAL STOCK</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our total authorized shares of capital stock
consists of (1)&nbsp;6,000,000,000&nbsp;shares of Common Stock
$0.001 par value per share, and (2)&nbsp;1,000,000&nbsp;shares
of preferred stock, $0.001 par value per share, 500,000 of which
are designated as series B preferred stock, one of which is
designated as special voting stock and the remainder of which is
undesignated.
</FONT>

<P align="left">
<B><FONT size="2">Common Stock</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The holders of Common Stock are entitled to one
vote for each share held of record on all matters submitted to a
vote of the stockholders. Holders of Common Stock do not have
cumulative voting rights in the election of directors. Subject
to preferences that may be granted to any then outstanding
preferred stock, holders of Common Stock are entitled to receive
ratably such dividends as may be declared by the Board of
Directors out of funds legally available therefor as well as any
distributions to the stockholders. In the event of our
liquidation or dissolution, holders of Common Stock are entitled
to share ratably in all our assets remaining after payment of
liabilities and the liquidation preference of any then
outstanding preferred stock. Holders of our Common Stock have no
preemptive or other subscription or conversion rights. There are
no redemption or sinking fund provisions applicable to our
Common Stock.
</FONT>

<P align="left">
<B><FONT size="2">Preferred Stock</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Board of Directors has the authority, without
further action by the stockholders, to issue up to
1,000,000&nbsp;shares of preferred stock in one or more series
and to fix the rights, preferences, privileges and restrictions
thereof, including dividend rights, conversion rights, voting
rights, terms of redemption, liquidation preferences, sinking
fund terms and the number of shares constituting any series or
the designation of such series, without any further vote or
action by the stockholders. The issuance of preferred stock
could adversely affect the voting power of holders of Common
Stock and the likelihood that such holders will receive dividend
payments and payments upon liquidation and could have the effect
of delaying, deterring or preventing a change in control of us.
We have no present plan to issue any additional shares of
preferred stock.
</FONT>

<P align="left">
<B><FONT size="2">Exchangeable Shares of JDS Uniphase Canada
Ltd.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our subsidiary, JDS Uniphase Canada Ltd., has
issued and outstanding 66,092,619 exchangeable shares. Each
exchangeable share is exchangeable at any time into our Common
Stock on a one-for-one basis, entitles a holder to dividend and
other rights economically equivalent to those of the Common
Stock, and through a voting trust, votes at meetings of our
stockholders.
</FONT>

<P align="left">
<B><FONT size="2">Delaware Anti-Takeover Law and Certain Charter
Provisions</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Anti-Takeover Law</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the last several years, a number of states
have adopted special laws designed to make some kinds of
&#147;unfriendly&#148; corporate takeovers, or other
transactions involving a corporation and one or more of its
significant stockholders, more difficult. Under Section&nbsp;203
of the Delaware General Corporation Law, some business
combinations by Delaware corporations with interested
stockholders are subject to a three-year moratorium unless
specified conditions are met. Section&nbsp;203 prohibits a
Delaware corporation from engaging in a business combination
with an interested stockholder for three years following the
date that such person becomes an interested stockholder. With
some exceptions, an interested stockholder is generally a person
or group who or which owns 15% or more of the corporation&#146;s
outstanding voting stock, including any rights to acquire stock
pursuant to an option, warrant, agreement, arrangement or
understanding, or upon the exercise of conversion or exchange
rights, and stock with respect to which the person has voting
rights only, or is an affiliate or associate of the corporation
and was the owner of 15% or more of such voting stock at any
time within the previous three years.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Because our certificate of incorporation and
bylaws do not contain a provision expressly electing not to be
governed by Section&nbsp;203 of the Delaware General Corporation
Law, they are subject to Section&nbsp;203.
</FONT>

<P align="center"><FONT size="2">48
</FONT>

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<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Limitation of Director and Officer
    Liability</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our certificate of incorporation indemnifies our
directors and officers to the fullest extent permissible under
Delaware law, as such law exists currently or as it may be
amended in the future. Under Delaware law, a corporation may not
indemnify directors&#146; or officers&#146; liability for the
following:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">breaches of a director&#146;s or officer&#146;s
    duty of loyalty to the corporation or its stockholders;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">acts or omissions not in good faith or involving
    intentional misconduct or knowing violations of law;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the payment of unlawful dividends or unlawful
    stock repurchases or redemptions; or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">transactions in which the director or officer
    received an improper personal benefit.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our bylaws authorize it to provide insurance for
its directors, officers or agents against any expense, liability
or loss, whether or not we would have the power to indemnify
such a person against such expense, liability or loss under
Delaware law.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Number of Directors</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our bylaws fix the authorized number of directors
at eight, and our Board of Directors or stockholders may change
such number by amending the bylaws.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Classified Board of Directors</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A classified board is one to which some, but not
all, of the directors are elected on a rotating basis each year.
Delaware law permits, but does not require, a classified board
of directors with staggered terms under which one-half or
one-third of the directors are elected for terms of two or three
years, respectively. Currently, we have a classified Board of
Directors under which one-third of our directors are elected
each year for a term of three years.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Director Voting</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our bylaws provide that the number of directors
constituting a quorum shall be a majority of the number of
authorized directors.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Removal of Directors</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Delaware law, unless otherwise restricted
by the certificate of incorporation or by the corporation&#146;s
bylaws, any director or the entire board of directors may be
removed with or without cause by the holders of a majority of
the shares then entitled to vote at an election of directors;
provided, however, that so long as stockholders of the
corporation are entitled to cumulative voting, no individual
director may be removed without cause, unless the entire board
is removed, if the number of votes cast against such removal
would be sufficient to elect the director if then cumulatively
voted at an election of the class of directors of which the
director is a part. Whenever the holders of any class or series
are entitled to elect one or more directors by the certificate
of incorporation, the director or directors may be removed
without cause only if there are sufficient votes by the holders
of the outstanding shares of that class or series. A vacancy
created by the removal of a director may be filled only by the
approval of the stockholders.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our bylaws provide that the Board of Directors or
any director may be removed with or without cause at a special
meeting of stockholders by a vote of stockholders holding a
majority of the outstanding shares entitled to vote at an
election of directors. Under Delaware law, no reduction of the
authorized number of directors shall have the effect of removing
any director prior to the expiration of the director&#146;s term
of office.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Filling Vacancies on the Board of
    Directors</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Delaware law, vacancies and newly created
directorships may be filled by a majority of the directors then
in office, even though less than a quorum, unless otherwise
provided in the certificate of incorporation or bylaws and
unless the certificate of incorporation directs that a
particular class is to elect the
</FONT>

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</FONT>

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<DIV align="left">
<FONT size="2">director, in which case any other directors
elected by such class, or a sole remaining director, shall fill
such vacancy. Our bylaws allow a majority of the directors then
in office to fill any vacancy on the Board of Directors even if
they make up less than a quorum.
</FONT>
</DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Advance Notice of Stockholder
    Proposals</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our bylaws provide that no matter proposed by our
respective stockholders will be considered at an annual meeting
or special stockholder meeting unless:
</FONT>
<P>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">it is specified in the notice of meeting;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">it is brought by or at the direction of the Board
    of Directors; or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">it is brought by a stockholder of the corporation
    who was a stockholder of record on the record date and has
    provided written notice of the matter to us in compliance with
    the time and content requirements in our bylaws, as applicable.
    </FONT></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">No Stockholder Action by Written Consent;
    Special Meeting</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our certificate of incorporation provides that
stockholders can take action only at a duly called annual or
special meeting of stockholders. Our stockholders are not
permitted to take action by written consent in lieu of a
meeting. In addition, our certificate of incorporation provides
that, subject to the rights of the holders of any stock having a
preference over the Common Stock as to dividends or liquidation,
special meetings of the stockholders can be called only by our
Board of Directors, our Chairman of the Board or our Chief
Executive Officer. Stockholders are not permitted to call a
special meeting or to require the Board of Directors to call a
special meeting of stockholders.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Amendment of Charter
    Documents</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Generally, under Delaware law, an amendment to a
corporation&#146;s certificate of incorporation requires the
approval of the board of directors and the approval of holders
of a majority of the outstanding stock entitled to vote on the
amendment. The holders of the outstanding shares of a class are
entitled to vote as a separate class on a proposed amendment
that would increase or decrease the aggregate number of
authorized shares of their class, increase or decrease the par
value of the shares of their class, or alter or change the
powers, preferences or special rights of the shares of their
class in a way that affects them adversely. Our certificate of
incorporation can be amended, altered or repealed or rescinded
in any manner now or hereafter prescribed by Delaware law. Our
bylaws may be altered, amended, repealed or rescinded by
unanimous written consent of our Board of Directors or by the
affirmative vote of a majority of the stockholders.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Rights Plan</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Currently each share of our outstanding Common
Stock is associated with one right. Each right entitles
stockholders to purchase 1/100,000&nbsp;share of our
Series&nbsp;B Preferred Stock at an exercise price of $21. The
rights only become exercisable in certain limited circumstances
following the tenth day after a person or group announces
acquisition of or tender offers for 15% or more of our Common
Stock. For a limited period of time following the announcement
of any such acquisition or offer, the rights are redeemable by
us at a price of $0.01 per right. If the rights are not
redeemed, each right will then entitle the holder to purchase
Common Stock having the value of twice the then-current exercise
price. For a limited period of time after the exercisability of
the rights, each right, at the discretion of our Board of
Directors, may be exchanged for either 1/100,000&nbsp;share of
Series&nbsp;B Preferred Stock or one share of Common Stock per
right. The rights expire on June&nbsp;22, 2013.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Board of Directors has the authority to issue
up to 499,999&nbsp;shares of undesignated preferred stock and to
determine the powers, preferences and rights and the
qualifications, limitations or restrictions granted to or
imposed upon any wholly unissued shares of undesignated
preferred stock and to fix the number of shares constituting any
series and the designation of such series, without the consent
of our stockholders. The
</FONT>

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<DIV align="left">
<FONT size="2">preferred stock could be issued with voting,
liquidation, dividend and other rights superior to those of the
holders of Common Stock.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The issuance of Series&nbsp;B Preferred Stock or
any preferred stock subsequently issued by our Board of
Directors, under some circumstances, could have the effect of
delaying, deferring or preventing a change in control.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Some provisions contained in the rights plan, and
in the equivalent rights plan that our subsidiary,
JDS&nbsp;Uniphase Canada Ltd., has adopted with respect to our
exchangeable shares, may have the effect of discouraging a third
party from making an acquisition proposal for us and may thereby
inhibit a change in control. For example, such provisions may
deter tender offers for shares of Common Stock or exchangeable
shares, which offers may be attractive to stockholders, or deter
purchases of large blocks of Common Stock or exchangeable
shares, thereby limiting the opportunity for stockholders to
receive a premium for their shares of Common Stock or
exchangeable shares over the then-prevailing market prices.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Transfer Agent and Registrar</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The transfer agent and registrar for our Common
Stock is American Stock Transfer and Trust Company, New York,
New York.
</FONT>

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<!-- link1 "MATERIAL UNITED STATES FEDERAL TAX CONSIDERATIONS" -->
<DIV align="left"><A NAME="011"></A></DIV>

<P align="center">
<B><FONT size="2">MATERIAL UNITED STATES FEDERAL TAX
CONSIDERATIONS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This section describes the material U.S. federal
tax consequences relating to the purchase, ownership, and
disposition of the Notes and of Common Stock into which the
Notes may be converted. This description does not provide a
complete analysis of all potential tax consequences. The
information provided below is based on the Internal Revenue Code
of 1986, as amended (the &#147;Code&#148;), Treasury
Regulations, Internal Revenue Service (&#147;IRS&#148;)
published rulings and court decisions, all as currently in
effect. These authorities may change, possibly on a retroactive
basis, or the IRS might interpret the existing authorities
differently. In either case, the tax consequences of purchasing,
owning or disposing of Notes or Common Stock could differ from
those described below. We do not intend to obtain a ruling from
the IRS with respect to the tax consequences of acquiring or
holding the Notes or Common Stock.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This description is general in nature and does
not discuss all aspects of U.S.&nbsp;federal income taxation
that may be relevant to a particular investor in light of the
investor&#146;s particular circumstances, or to certain types of
investors subject to special treatment under U.S.&nbsp;federal
income tax laws (such as financial institutions, real estate
investment trusts, regulated investment companies, grantor
trusts, insurance companies, pension funds, tax-exempt
organizations, expatriates, brokers, dealers or traders in
securities or foreign currencies, traders in securities that
elect to apply a mark-to-market method of accounting, persons
holding Notes or Common Stock as part of a position in a
&#147;straddle&#148; or as part of a &#147;hedging,&#148;
&#147;conversion&#148; or &#147;integrated&#148; transaction for
U.S. federal income tax purposes, persons deemed to sell Notes
or Common Stock under the constructive sale provisions of the
Code, persons who hold Notes or Common Stock through a
partnership or other pass through entity, persons subject to the
alternative minimum tax provisions of the Code, U.S. Holders
that have a &#147;functional currency&#148; other than the
U.S.&nbsp;dollar, or Non-U.S. Holders, except to the extent
described below). This description generally applies to
investors who will hold the Notes and Common Stock as
&#147;capital assets&#148; within the meaning of
Section&nbsp;1221 of the Code. This description does not
consider the effect of any foreign, state, local or other tax
laws that may be applicable to particular investors.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">Investors considering the purchase of Notes
should consult their own tax advisors regarding the application
of the U.S.&nbsp;federal income tax laws to their particular
situations and the consequences of U.S.&nbsp;federal estate or
gift tax laws, foreign, state, or local tax laws, and tax
treaties.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As used herein, the term &#147;U.S. Holder&#148;
means a beneficial holder of a Note or Common Stock that is
(i)&nbsp;a citizen or resident of the U.S.; (ii)&nbsp;a
corporation organized in or under the laws of the U.S. or any
political subdivision thereof; (iii)&nbsp;an estate the income
of which is subject to U.S. federal income taxation regardless
of its source; or (iv)&nbsp;a trust, if such trust validly
elects to be treated as a U.S.&nbsp;person for U.S.&nbsp;federal
income tax purposes, or if (a)&nbsp;a court within the U.S. can
exercise primary supervision over its administration and
(b)&nbsp;one or more U.S.&nbsp;persons (as defined in
Section&nbsp;7701(a)(30) of the Code) have the authority to
control all of the substantial decisions of such trust. Persons
other than U.S.&nbsp;Holders (&#147;Non-U.S. Holders&#148;), as
defined below, are subject to special U.S.&nbsp;federal income
tax considerations, some of which are discussed below.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If a partnership (including for this purpose any
entity treated as a partnership for U.S.&nbsp;tax purposes) is a
beneficial owner of the Notes or Common Stock into which the
Notes may be converted, the U.S.&nbsp;federal income tax
treatment of a partner in the partnership will generally depend
on the status of the partner and the activities of the
partnership. A holder of the Notes or Common Stock into which
the Notes may be converted that is a partnership and partners in
such partnership should consult their individual tax advisors
about the U.S. federal income tax consequences of holding and
disposing of the Notes and the Common Stock into which the Notes
may be converted.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">U.S. Holders</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Notes Issued at a Discount</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As the issue price of the Notes for federal
income tax purposes at original issue was less than their
principal amount by an amount exceeding a <I>de minimis
</I>threshold, the Notes are considered to have been issued with
&#147;original issue discount&#148; (&#147;OID&#148;).
</FONT>

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</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If a holder owns a Note with OID , the holder
must include the OID in income as it accrues, which may be
before the holder receives cash attributable to such income. The
holder must include OID in income using the yield to maturity on
the Note as defined in Treasury Regulations (the &#147;OID
Regulations&#148;), which is computed based on a constant annual
rate of interest and compounding at the end of each accrual
period. The company has determined that the yield to maturity of
the Notes is 0.29%, compounded semiannually. The OID Regulations
permit a holder to use accrual periods of any length from one
day to one year to compute accruals of OID, provided that the
yield to maturity is adjusted to reflect the yield period
selected, and further provided that each scheduled payment of
principal or interest occurs either on the first or the last day
of an accrual period. Under these rules a holder must include in
income increasingly greater amounts of OID in successive accrual
periods, unless payments that are part of the stated redemption
price at maturity of a Note are made before its final maturity.
</FONT>

<P align="left">
<B><FONT size="2">Contingent Debt Instrument Rules</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If the amount or timing of any payments on a Note
is contingent, the Note could be subject to special rules that
apply to contingent debt instruments. These rules generally
require a U.S. Holder to accrue interest income at a rate higher
than the stated interest rate on the Note and to treat as
ordinary income (rather than capital gain) any gain recognized
on a sale, exchange or retirement of the Note before the
resolution of the contingencies. U.S. Holders would be entitled
to receive additional interest if the Notes are not registered
with the SEC within prescribed time periods. We do not believe
that, because of these potential additional payments or
otherwise, the Notes should be treated as contingent debt
instruments. Therefore, for purposes of filing tax or
information returns with the IRS, we will not treat the Notes as
contingent debt instruments. Unless otherwise noted, this
discussion assumes that the Notes are not subject to the
contingent debt instrument rules.
</FONT>

<P align="left">
<B><FONT size="2">Conversion Solely for Cash, Sale, Repurchase
or Redemption of the Notes</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A U.S. Holder generally will recognize capital
gain or loss if the U.S. Holder disposes of a Note in a
conversion solely for cash, a sale, a repurchase or a
redemption. The U.S. Holder&#146;s gain or loss will equal the
difference between the amount realized by the U.S. Holder and
the U.S. Holder&#146;s adjusted tax basis in the Note. The U.S.
Holder&#146;s adjusted tax basis in the Note will generally
equal the amount the U.S. Holder paid for the Note, increased by
the amount of any OID or market discount includible in the U.S.
Holder&#146;s gross income with respect to the Note and
decreased by the amount of premium previously taken into
account. Such gain or loss will generally be (i)&nbsp;capital
gain except to the extent of accrued market discount not
previously included in income and (ii)&nbsp;long-term if the
holder&#146;s holding period in respect of such Note is more
than one year. Long-term capital gain of non-corporate taxpayers
is taxed at lower rates than those applicable to ordinary
income. The deductibility of capital loss is subject to certain
limitations.
</FONT>

<P align="left">
<B><FONT size="2">Conversion of Notes Solely for Common
Stock</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If we deliver solely Common Stock upon a U.S.
Holder&#146;s conversion of a Note, such U.S. Holder generally
will not recognize any income, gain or loss. The U.S. Holder
will recognize gain, however, to the extent that the U.S. Holder
receives cash in lieu of a fractional share. The U.S.
Holder&#146;s aggregate basis in the Common Stock (including any
fractional share for which cash is paid) will equal his adjusted
basis in the Note, and the U.S. Holder&#146;s holding period for
the stock will include the period during which he held the Note.
</FONT>

<P align="left">
<B><FONT size="2">Conversion of Notes for Common Stock and
Cash</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If we deliver a combination of Common Stock and
cash upon a U.S. Holder&#146;s conversion of a Note, assuming
that the Notes are securities for U.S. federal income tax
purposes, a holder will generally not recognize loss, but will
generally recognize gain, if any, on a Note so converted in an
amount equal to the lesser of the amount of (i)&nbsp;gain
realized (i.e., the excess, if any, of the fair market value of
the Common Stock received upon conversion plus cash received
over the adjusted tax basis in Note tendered therefor) or
(ii)&nbsp;cash received. Such gain will generally be
(i)&nbsp;capital gain except to the extent of accrued market
discount not
</FONT>

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</FONT>

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<DIV align="left">
<FONT size="2">previously included in income and
(ii)&nbsp;long-term if the holder&#146;s holding period in
respect of such Note is more than one year. The U.S.
Holder&#146;s aggregate basis in the Common Stock (including any
fractional share for which cash is paid) will equal his adjusted
basis in the Note, and the U.S. Holder&#146;s holding period for
the stock will include the period during which he held the Note.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">Market Discount</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The acquisition and sale of a Note may be subject
to the market discount provisions of the Code. Subject to a
<I>de minimis </I>exception, the market discount on a Note
generally will equal the amount, if any, by which the issue
price plus accrued OID of the Note immediately after its
acquisition (other than at original issue) exceeds the U.S.
Holder&#146;s adjusted tax basis in the Note. A Note may also
have market discount upon original issue if the holder has a
cost basis in the Note that is less than the &#147;issue
price,&#148; as defined above. If applicable, these provisions
generally require a U.S. Holder who acquires a Note at a market
discount to treat as ordinary income any gain recognized on the
disposition of that Note to the extent of the accrued market
discount on that Note at the time of disposition, unless the
U.S. Holder elects to include market discount in income
currently as it accrues with a corresponding increase in the
U.S. Holder&#146;s adjusted tax basis in the Note. If a U.S.
Holder disposes of a Note with market discount in certain
otherwise non-taxable transactions, the U.S. Holder must include
accrued market discount as ordinary income as if the U.S. Holder
had sold the Note at its then fair market value. A U.S. Holder
will not recognize income for any accrued market discount
attributable to a Note converted into Common Stock. Upon
disposition of such Common Stock received, however, any gain
will be treated as ordinary income to the extent of such accrued
market discount not previously included in income.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The election to include market discount in income
currently, once made, applies to all market discount obligations
acquired on or after the first taxable year to which the
election applies and may not be revoked without the consent of
the IRS. In general, market discount will be treated as accruing
on a straight-line basis over the remaining term of the Note at
the time of acquisition, or, at the election of the U.S. Holder,
under a constant yield method. A U.S. Holder who acquires a Note
at a market discount and who does not elect to include accrued
market discount in income currently may be required to defer the
deduction of a portion of the interest on any indebtedness
incurred or maintained to purchase or carry the Note until the
Note is disposed of in a taxable transaction. If a Note with
accrued market discount is converted into Common Stock pursuant
to the conversion feature, the amount of such accrued market
discount not previously included in income generally will be
taxable as ordinary income on disposition of the Common Stock.
</FONT>

<P align="left">
<B><FONT size="2">Amortizable Premium</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A U.S. Holder who purchases a Note at a premium
over its stated principal amount will not include OID in income.
A U.S. Holder who purchases a Note at a premium may elect to
amortize that premium with a corresponding decrease in the
adjusted tax basis from the purchase date to the Note&#146;s
maturity date under a constant-yield method that reflects
semiannual compounding based on the Note&#146;s payment period,
but subject to special limitations if the Note is subject to
optional redemption at a premium. Amortizable premium will not
include any premium attributable to a Note&#146;s conversion
feature. The premium attributable to the conversion feature
generally is the excess, if any, of the Note&#146;s purchase
price over what the Note&#146;s fair market value would be if
there were no conversion feature. Amortized premium is treated
as an offset to interest income on a Note and not as a separate
deduction. Under Treasury Regulations, the amount of amortizable
bond premium that a U.S. Holder may deduct in any accrual period
is limited to the amount by which the holder&#146;s total
interest inclusions on the Note in prior accrual periods exceed
the total amount treated by the holder as a bond premium
deduction in prior accrual periods. If any of the excess bond
premium is not deductible, that amount is carried forward to the
next accrual period. The election to amortize premium on a
constant yield method, once made, applies to all debt
obligations held or subsequently acquired by the electing U.S.
Holder on or after the first day of the first taxable year to
which the election applies and may not be revoked without the
consent of the IRS. If an election to amortize premium is not
made, a U.S. Holder must include all amounts of interest without
reduction for such premium, and may receive a tax benefit from
the
</FONT>

<P align="center"><FONT size="2">54
</FONT>

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<DIV align="left">
<FONT size="2">premium only in computing such U.S. Holder&#146;s
gain or loss on disposition of the Note. Investors should
consult their own advisors concerning the advisability of
electing to amortize premium.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A U.S. Holder who acquires a Note issued with
more than a <I>de minimis</I> amount of OID for an amount less
than or equal to the principal amount of the Note, but in excess
of the adjusted issue price of such Note will generally be
deemed to have acquired the Notes with acquisition premium.
Under the acquisition premium rules, a holder is generally
required to reduce daily portions of OID on a Note by the amount
of acquisition premium allocable to such day.
</FONT>

<P align="left">
<B><FONT size="2">Dividends</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As discussed in &#147; &#151;&nbsp;Dividend
Policy,&#148; we have not paid cash dividends on our Common
Stock and we do not anticipate paying cash dividends in the
foreseeable future. However, if, after a U.S. Holder converts a
Note into Common Stock, we make a distribution in respect of
that stock, the distribution will be treated as a dividend,
taxable to the U.S. Holder as ordinary income, to the extent it
is paid from our current or accumulated earnings and profits. If
the distribution exceeds our current and accumulated profits,
the excess will be treated first as a nontaxable return of
capital reducing the U.S. Holder&#146;s tax basis in the U.S.
Holder&#146;s stock. Any remaining excess will be treated as
capital gain. We are required to provide shareholders who
receive dividends with an information return on
Form&nbsp;1099-DIV that states the extent to which the dividend
is paid from our current or accumulated earnings and profits and
is thus taxable. If the U.S. Holder is a U.S. corporation, it
generally would be able to claim a deduction equal to a portion
of any dividends received.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The terms of the Notes allow for changes in the
conversion price of the Notes in certain circumstances. A change
in conversion price that allows U.S. Holders of Notes to receive
more shares of Common Stock on conversion may increase those
Noteholders&#146; proportionate interests in our earnings and
profits or assets. In that case, those Noteholders would be
treated as though they received a dividend in the form of our
stock. Such a constructive stock dividend could be taxable to
those Noteholders, although they would not actually receive any
cash or other property. A taxable constructive stock dividend
would result to U.S. Holders of Notes, for example, if the
conversion price were adjusted to compensate Noteholders for
distributions of cash or property to our shareholders. Not all
changes in conversion price that allow Noteholders to receive
more stock on conversion, however, increase the
Noteholders&#146; proportionate interests in us. For instance, a
change in conversion price could simply prevent the dilution of
the Noteholders&#146; interests upon a stock split or other
change in capital structure. Changes of this type, if made under
a bona fide, reasonable adjustment formula, are not treated as
constructive stock dividends. On the other hand, if an event
occurs that dilutes the Noteholders&#146; interests and the
conversion price is not adjusted, the resulting increase in the
proportionate interests of our shareholders could be treated as
a taxable stock dividend to the shareholders. Any taxable
constructive stock dividends resulting from a change to, or
failure to change, the conversion price would be treated in the
same manner as dividends paid in cash or other property. Such
dividends would result in ordinary income to the recipient, to
the extent of our current or accumulated earnings and profits,
with any excess treated as a nontaxable return of capital or as
capital gain.
</FONT>

<P align="left">
<B><FONT size="2">Sale of Common Stock</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A U.S. Holder will generally recognize capital
gain or loss on a sale or exchange of Common Stock except to the
extent of accrued market discount not previously included in
income. See &#147;Market Discount&#148; above. The U.S.
Holder&#146;s gain or loss will equal the difference between the
amount realized by the U.S. Holder and the U.S. Holder&#146;s
adjusted tax basis in the stock. The amount realized by the U.S.
Holder will include the amount of any cash and the fair market
value of any other property received for the stock. Capital gain
or loss recognized by a U.S. Holder on a sale or exchange of
stock will be long-term if the holder held the stock for more
than one year. Long-term capital gain of non-corporate taxpayers
is taxed at lower rates than those applicable to ordinary
income. The deductibility of capital loss is subject to certain
limitations.
</FONT>

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</FONT>

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<P align="left">
<B><FONT size="2">Backup Withholding and Information
Reporting</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Code and the Treasury Regulations require
those who make specified payments to report the payments to the
IRS. Among the specified payments are interest, OID, dividends,
and proceeds paid by brokers to their customers. This reporting
regime is reinforced by &#147;backup withholding&#148; rules.
These rules require the payors to withhold tax from payments
subject to information reporting if the recipient fails to
cooperate with the reporting regime by failing to provide the
recipient&#146;s taxpayer identification number to the payor or
by furnishing an incorrect identification number, or if the
recipient has been notified by the IRS that the recipient has
failed to report interest or dividends on the recipient&#146;s
returns. The information reporting and backup withholding rules
do not apply to payments to corporations, tax-exempt
organizations and certain foreign persons, provided their
exemptions from backup withholding are properly established.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Payments of interest, OID or dividends to
individual U.S. Holders of Notes or Common Stock generally will
be subject to information reporting, and generally will be
subject to backup withholding unless the U.S. Holder provides us
or our paying agent with a correct taxpayer identification
number.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Payments made to U.S. Holders by a broker upon a
sale of Notes or Common Stock generally will be subject to
information reporting and backup withholding. If, however, the
sale is made through a foreign office of a U.S. broker, the sale
will be subject to information reporting but not backup
withholding. If the sale is made through a foreign office of a
foreign broker, the sale generally will not be subject to either
information reporting or backup withholding. This exception may
not apply, however, if the foreign broker is owned or controlled
by U.S. persons, or is engaged in a U.S. trade or business.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Any amounts withheld from a payment to a U.S.
Holder of Notes or Common Stock under the backup withholding
rules can be credited against any U.S. federal income tax
liability of the U.S. Holder.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Non-U.S. Holders</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This subsection describes the U.S. federal tax
consequences to a Non-U.S. Holder.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In general, subject to the discussion below
concerning backup withholding:
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">(a)&nbsp;Payments of principal, interest
(including additional interest), or OID on the Notes by us or
our paying agent to a beneficial owner of a Note that is a
Non-U.S. Holder will not be subject to U.S. federal income tax
or U.S. withholding tax, provided that, in the case of interest
(including additional interest) and OID on the Notes,
(i)&nbsp;such Non-U.S. Holder does not own, actually or
constructively, 10% or more of the total combined voting power
of all classes of our stock entitled to vote within the meaning
of Section&nbsp;871(h)(3) of the Code, (ii)&nbsp;such Non-U.S.
Holder is not a &#147;controlled foreign corporation&#148;
within the meaning of Section&nbsp;957(a) of the Code with
respect to which we are a &#147;related person&#148; within the
meaning of Section 864(d)(4) of the Code, and (iii)&nbsp;the
certification requirements under Section 871(h) or
Section&nbsp;881(c) of the Code and Treasury Regulations
thereunder (discussed below) are satisfied;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">(b)&nbsp;A Non-U.S. Holder of a Note or Common
Stock will not be subject to U.S. federal income tax on gains
realized on the sale, exchange or other disposition of such Note
or Common Stock unless (i)&nbsp;such Non-U.S. Holder is an
individual who holds the Common Stock as a capital asset and is
present in the U.S. for 183&nbsp;days or more in the taxable
year of sale, exchange or other disposition, and certain
conditions are met, (ii)&nbsp;such gain is effectively connected
with the conduct by the Non-U.S. Holder of a trade or business
in the U.S. and, if certain U.S. income tax treaties apply, is
attributable to a U.S. permanent establishment maintained by the
Non-U.S. Holder, (iii)&nbsp;the Non-U.S. Holder is subject to
Code provisions applicable to certain U.S. expatriates, or
(iv)&nbsp;in the case of Common Stock held by a person who holds
more than 5% of such stock, we are or have been, at any time
within the shorter of the five-year period preceding such sale
or other disposition or the period such Non-U.S. Holder held the
Common Stock, a U.S. real property holding corporation
(USRPHC)&nbsp;within the meaning of Section&nbsp;897(c)(2) of
the Code for U.S. federal income tax purposes. We do not believe
that we are currently a USRPHC or that we will become one in the
future; and
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">(c)&nbsp;Interest (including additional interest)
and OID on the Notes not excluded from U.S. federal income tax
or U.S. withholding tax as described in (a)&nbsp;above and
dividends on Common Stock after
</FONT>

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<DIV align="left">
<FONT size="2">conversion generally will be subject to U.S.
withholding tax at a 30% rate, except where an applicable U.S.
income tax treaty provides for the reduction or elimination of
such withholding tax.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Even if a Non-U.S. Holder is eligible for a lower
treaty rate, we and other payors will generally be required to
withhold at a 30% rate (rather than the lower treaty rate) on
dividend payments (including additional interest and
constructive dividends) on Common Stock to the Non-U.S. Holder,
unless the Non-U.S. Holder has furnished to us or another payor:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">a valid IRS Form&nbsp;W-8BEN or an acceptable
    substitute form upon which the Non-U.S. Holder certifies, under
    penalties of perjury, its status as a non-U.S. person and its
    entitlement to the lower treaty rate with respect to such
    payments, or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">in the case of payments made outside the U.S. to
    an offshore account (generally, an account maintained by such
    Non-U.S. Holder at an office or branch of a bank or other
    financial institution at any location outside the United
    States), other documentary evidence establishing the Non-U.S.
    Holder&#146;s entitlement to the lower treaty rate in accordance
    with U.S. Treasury regulations.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">If a Non-U.S. Holder is eligible for a reduced
rate of U.S. withholding tax under a tax treaty, such Non-U.S.
Holder may obtain a refund of any amounts withheld in excess of
that rate by filing a refund claim with the IRS.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">To satisfy the certification requirements
referred to in (a) (iii)&nbsp;above, Sections&nbsp;871(h) and
881(c) of the Code and Treasury Regulations thereunder require
that either (i)&nbsp;the beneficial owner of a Note certify,
under penalties of perjury, to us or our paying agent, as the
case may be, that such owner is a Non-U.S. Holder, or
(ii)&nbsp;a securities clearing organization, bank or other
financial institution that holds customer securities in the
ordinary course of its trade or business (each a &#147;Financial
Institution&#148;) and holds the Note on behalf of the
beneficial owner thereof certify, under penalties of perjury, to
us or our paying agent, as the case may be, that such
certificate has been received from the beneficial owner and
furnish the payor with a copy thereof. Such requirement will be
fulfilled if the beneficial owner of a Note certifies on IRS
Form&nbsp;W-8 BEN, under penalties of perjury, that it is a
Non-U.S. Holder or any Financial Institution holding the Note on
behalf of the beneficial owner files a statement with the
withholding agent to the effect that it has received such a
statement from the beneficial owner (and furnishes the
withholding agent with a copy thereof).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If a Non-U.S. Holder of a Note or Common Stock is
engaged in a trade or business in the U.S. and if interest
(including additional interest) or OID on the Note, dividends on
the Common Stock, or gain realized on the sale, exchange or
other disposition of the Note or Common Stock is effectively
connected with the conduct of such trade or business (and, if
certain tax treaties apply, is attributable to a U.S. permanent
establishment maintained by the Non-U.S. Holder in the U.S.),
the Non-U.S. Holder, although exempt from U.S. withholding tax
(provided that the certification requirements discussed in the
next sentence are met), will generally be subject to U.S.
federal income tax on such interest (including additional
interest), OID, dividends or gain on a net income basis in the
same manner as if it were a U.S. Holder. In lieu of the
certificate described above, such a Non-U.S. Holder will be
required, under currently effective Treasury Regulations, to
provide us with a properly executed IRS Form&nbsp;W-8ECI in
order to claim an exemption from U.S. tax withholding. In
addition, if such Non-U.S. Holder is a foreign corporation, it
may be subject to a branch profits tax equal to 30% (or such
lower rate provided by an applicable U.S. income tax treaty) of
a portion of its effectively connected earnings and profits for
the taxable year.
</FONT>

<P align="left">
<B><FONT size="2">United States Federal Estate Tax</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A Note held by an individual who at the time of
death is not a citizen or resident of the U.S. (as specially
defined for U.S.&nbsp;federal estate tax purposes) will not be
subject to U.S.&nbsp;federal estate tax if the individual did
not actually or constructively own 10% or more of the total
combined voting power of all classes of our stock and, at the
time of the individual&#146;s death, payments with respect to
such Note would not have been effectively connected with the
conduct by such individual of a trade or business in the
U.S.&nbsp;Common Stock held by an individual who at the time of
death is not a citizen or resident of the U.S.&nbsp;(as
specially defined for U.S.&nbsp;federal
</FONT>

<P align="center"><FONT size="2">57
</FONT>

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<DIV align="left">
<FONT size="2">estate tax purposes) will be included in such
individual&#146;s estate for U.S.&nbsp;federal estate tax
purposes, unless an applicable U.S.&nbsp;estate tax treaty
otherwise applies.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Non-U.S.&nbsp;Holders should consult with their
tax advisors regarding U.S.&nbsp;federal, state, local and
foreign tax consequences with respect to the Notes and Common
Stock.
</FONT>

<P align="left">
<B><FONT size="2">Backup Withholding and Information
Reporting</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the case of payments of interest (including
additional interest) or OID on a Note to a Non-U.S.&nbsp;Holder,
backup withholding and information reporting will not apply to
payments with respect to which either requisite certification
has been received or an exemption has otherwise been established
(provided that neither we nor a paying agent has actual
knowledge or reason to know that the holder is a
U.S.&nbsp;Holder or that the conditions of any other exemption
are not in fact satisfied). However, we and other payors are
required to report payments of interest (including additional
interest) or OID on such Non-U.S.&nbsp;Holders&#146; Notes on
IRS Form&nbsp;1042-S even if the payments are not otherwise
subject to information reporting requirements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Dividends on the Common Stock paid to
Non-U.S.&nbsp;Holders that are subject to U.S.&nbsp;withholding
tax, as described above, generally will be exempt from
U.S.&nbsp;backup withholding tax but will be subject to certain
information reporting requirements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Payments of the proceeds of the sale of a Note or
Common Stock to or through a foreign office of a
U.S.&nbsp;broker or a foreign office of a broker that is a
U.S.&nbsp;related person (either a &#147;controlled foreign
corporation&#148; or a foreign person, 50% or more of whose
gross income from all sources for the three-year period ending
with the close of its taxable year preceding the payment was
effectively connected with the conduct of a trade or business
within the U.S.), or a foreign partnership, if at any time
during its tax year, one or more of its partners are
U.S.&nbsp;persons who in the aggregate hold more than 50% of the
income or capital interests in the partnership, or such foreign
partnership is engaged in a U.S.&nbsp;trade or business, are
subject to certain information reporting requirements, unless
the payee is an exempt recipient or such broker has evidence in
its records that the payee is a Non-U.S.&nbsp;Holder and no
actual knowledge or reason to know that such evidence is false
and certain other conditions are met. Such payments are not
currently subject to backup withholding.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Payments of the proceeds of a sale of a Note or
Common Stock to or through the U.S.&nbsp;office of a broker will
be subject to information reporting and backup withholding
unless the payee certifies under penalties of perjury as to his
or her status as a Non-U.S.&nbsp;Holder and satisfies certain
other qualifications (and no agent of the broker who is
responsible for receiving or reviewing such statement has actual
knowledge or reason to know that it is incorrect) and provides
his or her name and address or the payee otherwise establishes
an exemption.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If an investor fails to establish an exemption
and the broker does not possess adequate documentation of the
investor&#146;s status as a non-U.S. person, the payments may be
subject to information reporting and backup withholding.
However, backup withholding will not apply with respect to
payments made to an offshore account maintained by an investor
unless the broker has actual knowledge that the investor is a
U.S.&nbsp;person.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Payments of the proceeds of the sale of a Note or
Common Stock to or through a foreign office of a broker will not
be subject to information reporting or backup withholding.
However, a sale effected at a foreign office of a broker will be
subject to information reporting and backup withholding if the
proceeds are transferred to an account maintained by the
investor in the United States, the payment of proceeds or the
confirmation of the sale is mailed to the investor at a
U.S.&nbsp;address, or the sale has some other specified
connection with the U.S. as provided in U.S.&nbsp;Treasury
regulations, unless the broker does not have actual knowledge or
reason to know that the investor is a U.S.&nbsp;person and the
documentation requirements described above (relating to a sale
of Notes effected at a U.S.&nbsp;office of a broker) are met or
the investor otherwise establishes an exemption.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Any amounts withheld under the backup withholding
rules from a payment to a holder of a Note or Common Stock will
be allowed as a refund or credit against such holder&#146;s
U.S.&nbsp;federal income tax liability provided that the
required information is furnished to the IRS in a timely manner.
</FONT>

<P align="center"><FONT size="2">58
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A holder of a Note or Common Stock should consult
with its tax advisor regarding the application of the backup
withholding rules to its particular situation, the availability
of an exemption therefrom and the procedure for obtaining such
an exemption, if available.
</FONT>

<!-- link1 "LEGAL MATTERS" -->
<DIV align="left"><A NAME="012"></A></DIV>

<P align="center">
<B><FONT size="2">LEGAL MATTERS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The validity of the Notes and the shares of
Common Stock issuable upon conversion of the Notes will be
passed upon for us by Morrison&nbsp;&#38; Foerster LLP, San
Francisco, California.
</FONT>

<!-- link1 "EXPERTS" -->
<DIV align="left"><A NAME="013"></A></DIV>

<P align="center">
<B><FONT size="2">EXPERTS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The consolidated financial statements of JDS
Uniphase Corporation appearing in JDS Uniphase
Corporation&#146;s Annual Report (Form&nbsp;10-K) for the year
ended June&nbsp;30, 2003, have been audited by Ernst&nbsp;&#38;
Young LLP, independent auditors, as set forth in their report
thereon included therein and incorporated herein by reference.
Such consolidated financial statements are incorporated herein
by reference in reliance upon such report given on the authority
of such firm as experts in accounting and auditing.
</FONT>

<P align="center"><FONT size="2">59
</FONT>

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<DIV align="left">
<FONT size="2">
</FONT>
</DIV>

<P align="center">
<IMG src="f94556a1f9455601.gif" alt="(JDS UNIPHASE LOGO)">

<DIV>&nbsp;</DIV>

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<P align="center">
<B><FONT size="2">PART II</FONT></B>

<P align="center">
<B><FONT size="2">INFORMATION NOT REQUIRED IN
PROSPECTUS</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Item&nbsp;14.</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Other Expenses of Issuance and
    Distribution</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth the expenses,
other than underwriting discounts and commissions, in connection
with the offering of the securities being registered. All the
amounts shown are estimates except for the registration fee.
</FONT>

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="83%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Securities and Exchange Commission Registration
    Fee
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">38,428</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Nasdaq Listing Fee
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22,500</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Printing Fees
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Legal Fees and Expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">30,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accounting Fees and Expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">30,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Trustee&#146;s Fees and Expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Miscellaneous
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">72</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">141,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">None of the expenses listed above will be borne
by the selling securityholders.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Item&nbsp;15.</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Indemnification of Directors and
    Officers</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Reference is made to Section&nbsp;102(b)(7) of
the Delaware General Corporation Law (the &#147;DGCL&#148;),
which permits a corporation in its certificate of incorporation
or an amendment thereto to eliminate or limit the personal
liability of a director for violations of the director&#146;s
fiduciary duty, except (i)&nbsp;for any breach of the
director&#146;s fiduciary duty of loyalty to the corporation or
its stockholders, (ii)&nbsp;for acts or omissions not in good
faith or which involve intentional misconduct or a knowing
violation of law, (iii)&nbsp;pursuant to Section&nbsp;174 of the
DGCL (providing for liability of directors for unlawful payment
of dividends or unlawful stock purchases or redemptions), or
(iv)&nbsp;for any transaction from which the director derived an
improper personal benefit. The Registrant&#146;s Amended and
Restated Certificate of Incorporation contains provisions
permitted by Section&nbsp;102(b)(7) of the DGCL.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Reference is made to Section&nbsp;145 of the DGCL
which provides that a corporation may indemnify any persons,
including directors and officers, who are, or are threatened to
be made, parties to any threatened, pending or completed legal
action, suit or proceeding, whether civil, criminal,
administrative or investigative (other than an action by or in
the right of such corporation), by reason of the fact that such
person is or was a director, officer, employee or agent of such
corporation, or is or was serving at the request of such
corporation as a director, officer, employee or agent of another
corporation or enterprise. The indemnity may include expenses
(including attorney&#146;s fees), judgments, fines and amounts
paid in settlement actually and reasonably incurred by such
person in connection with such action, suit or proceeding,
provided such director, officer, employee or agent acted in good
faith and in a manner he or she reasonably believed to be in or
not opposed to the corporation&#146;s best interests and, with
respect to any criminal actions or proceedings, had no
reasonable cause to believe that his or her conduct was
unlawful. A Delaware corporation may indemnify directors and/or
officers in an action or suit by or in the right of the
corporation under the same conditions, except that no
indemnification is permitted without judicial approval if the
director or officer is adjudged to be liable to the corporation.
Where a director or officer is successful on the merits or
otherwise in the defense of any action referred to above, the
corporation must indemnify him or her against the expenses which
such director or officer actually and reasonably incurred.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Registrant&#146;s Amended and Restated
Certificate of Incorporation provides indemnification of
directors and officers of the Registrant to the fullest extent
permitted by the DGCL. The Registrant has obtained liability
insurance for each director and officer of the Registrant for
certain losses arising from claims or charges made against them
while acting in their capacities as directors or officers of the
Registrant.
</FONT>

<P align="center"><FONT size="2">II-1
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The above discussion of the Registrant&#146;s
Amended and Restated Certificate of Incorporation and
Sections&nbsp;102(b)(7) and 145 of the DGCL is not intended to
be exhaustive and is qualified in its entirety by such Amended
and Restated Certificate of Incorporation and statutes.
</FONT>

<P align="left">
<B><FONT size="2">Item&nbsp;16.<I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibits
and Financial Statement Schedules</I></FONT></B>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="72%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exhibit</FONT></B></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number</FONT></B></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Description of Exhibit</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3.1(1)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Restated Certificate of Incorporation.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3.2(2)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Certificate of Designation of the Series&nbsp;B
    Preferred Stock.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3.3(3)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Certificate of Designation of the Special Voting
    Stock.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3.4(9)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amended and Restated Bylaws of JDS Uniphase
    Corporation.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.1(4)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Exchangeable Share Provisions attaching to the
    Exchangeable Shares of JDS Uniphase Canada Ltd.
    (Formerly&nbsp;3506967 Canada Inc.).
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.2(5)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Voting and Exchange Trust Agreement between JDS
    Uniphase, JDS Uniphase Canada Ltd. and CIBC Mellon Trust Company.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.3(6)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Exchangeable Share Support Agreement between JDS
    Uniphase, JDS Uniphase Canada Ltd. and JDS Uniphase Nova Scotia
    Company.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.4(7)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Registration Rights Agreement between JDS
    Uniphase, JDS Uniphase Canada Ltd. and The Furukawa Electric
    Co., Ltd.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.5(8)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Fifth Amended and Restated Rights Agreement
    between JDS Uniphase and American Stock Transfer&nbsp;&#38;
    Trust Company.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.6(10)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amended and Restated Rights Agreement between JDS
    Uniphase Canada Ltd. and CIBC Mellon Trust Company (Amended and
    Restated as of February&nbsp;6, 2003).
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.7*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Indenture, dated as of October&nbsp;31, 2003
    between JDS Uniphase Corporation and The Bank of New York, as
    Trustee
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.8*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Global Note (included in Exhibit&nbsp;4.7)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.9*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Registration Rights Agreement, dated as of
    October&nbsp;31, 2003, by and among JDS Uniphase Corporation and
    Morgan Stanley&nbsp;&#38; Co. Incorporated, Goldman,
    Sachs&nbsp;&#38; Co., and CIBC World Markets Corp.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">5.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Opinion of Morrison&nbsp;&#38; Foerster LLP
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">12.1*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Calculation of computation of ratio of earnings
    to fixed charges
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">23.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Consent of Independent Auditors
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">23.2*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Consent of Morrison&nbsp;&#38; Foerster LLP
    (included in Exhibit&nbsp;5.1)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">24.1*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Power of Attorney (included in the signature page
    to this Registration Statement)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">25.1*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Statement of Eligibility under the Trust
    Indenture Act of 1939 of a Corporation Designated to Act as
    Trustee of The Bank of New York (Form&nbsp;T-1)
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="4%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">*&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Previously filed.
    </FONT></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="4%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference to Exhibit&nbsp;3.1 of
    the Company&#146;s Annual Report on Form&nbsp;10-K/ A filed
    February&nbsp;13, 2001.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference to Exhibit&nbsp;3(i)(d)
    of the Company&#146;s Annual Report on Form&nbsp;10-K filed
    September&nbsp;28, 1998.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(3)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference to Exhibit&nbsp;4.1 of
    the Company&#146;s Registration Statement on Form&nbsp;S-3 filed
    July&nbsp;14, 1999.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(4)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference to the Company&#146;s
    definitive Proxy Statement on Schedule&nbsp;14A filed
    June&nbsp;2, 1999.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(5)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference to Exhibit&nbsp;4.2 of
    the Company&#146;s Annual Report on Form&nbsp;10-K filed
    September&nbsp;1, 1999.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">II-2
</FONT>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="4%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(6)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference to Exhibit&nbsp;4.3 of
    the Company&#146;s Annual Report on Form&nbsp;10-K filed
    September&nbsp;1, 1999.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(7)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference to Exhibit&nbsp;4.5 of
    the Company&#146;s Annual Report on Form&nbsp;10-K filed
    September&nbsp;1, 1999.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(8)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference to Exhibit&nbsp;1 of
    the Company&#146;s Registration Statement on Form&nbsp;8-A12G/ A
    filed February&nbsp;18, 2003.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(9)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference to Exhibit&nbsp;3.5 of
    the Company&#146;s Annual Report on Form&nbsp;10-K filed
    September&nbsp;24, 2003.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(10)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference to Exhibit&nbsp;4.6 of
    the Company&#146;s Annual Report on Form&nbsp;10-K filed
    September&nbsp;24, 2003.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Item&nbsp;17.<I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Undertakings</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The undersigned Registrant hereby undertakes:
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">(1)&nbsp;To file, during any period in which
offers or sales are being made, a post-effective amendment to
this registration statement:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(i)&nbsp;To include any prospectus required by
    Section&nbsp;10(a)(3) of the Securities Act of 1933;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(ii)&nbsp;To reflect in the prospectus any facts
    or events arising after the effective date of the registration
    statement (or the most recent post-effective amendment thereof)
    which, individually or in the aggregate, represent a fundamental
    change in the information set forth in this registration
    statement. Notwithstanding the foregoing, any increase or
    decrease in volume of securities offered (if the total dollar
    value of securities offered would not exceed that which was
    registered) and any deviation from the low or high of the
    estimated maximum offering range may be reflected in the form of
    prospectus filed with the Commission pursuant to
    Rule&nbsp;424(b) if, in the aggregate, the changes in volume and
    price represent no more than a 20&nbsp;percent change in the
    maximum aggregate offering price set forth in the
    &#147;Calculation of Registration Fee&#148; table in the
    effective registration statement; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(iii)&nbsp;To include any material information
    with respect to the plan of distribution not previously
    disclosed in this registration statement or any material change
    to such information in this registration statement;
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">provided, however,
</FONT></I><FONT size="2">that subparagraphs (i)&nbsp;and
(ii)&nbsp;do not apply if the information required to be
included in a post-effective amendment by those paragraphs is
contained in the periodic reports filed by the Registrant
pursuant to Section&nbsp;13 or Section&nbsp;15(d) of the
Securities Exchange Act of 1934, that are incorporated by
reference in this registration statement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">(2)&nbsp;That, for the purpose of determining any
liability under the Securities Act of 1933, each such
post-effective amendment shall be deemed to be a new
registration statement relating to the securities offered
herein, and the offering of such securities at that time shall
be deemed to be the initial <I>bona fide </I>offering thereof.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">(3)&nbsp;To remove from registration by means of
a post-effective amendment any of the securities being
registered which remain unsold at the termination of the
offering.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The undersigned Registrant hereby further
undertakes that, for purposes of determining any liability under
the Securities Act of 1933, each filing of the Registrant&#146;s
annual reports pursuant to Section&nbsp;13(a) or
Section&nbsp;15(d) of the Securities Exchange Act of 1934 (and,
where applicable, each filing of an employee benefit plan&#146;s
annual report pursuant to Section&nbsp;15(d) of the Securities
Exchange Act of 1934) that is incorporated by reference in this
registration statement shall be deemed to be a new registration
statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be
the initial <I>bona fide </I>offering thereof.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Insofar as indemnification for liabilities
arising under the Securities Act may be permitted to directors,
officers and controlling persons of the Registrant pursuant to
the provisions described under Item&nbsp;15 above, or
</FONT>

<P align="center"><FONT size="2">II-3
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">otherwise, the Registrant has been advised that
in the opinion of the Commission such indemnification is against
public policy as expressed in the Securities Act and is,
therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment
by the Registrant of expenses incurred or paid by a director,
officer or controlling person of the Registrant in the
successful defense of any action, suit or proceeding) is
asserted by such director, officer or controlling person in
connection with the securities being registered, the Registrant
will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in
the Securities Act and will be governed by the final
adjudication of such issue.
</FONT>
</DIV>

<P align="center"><FONT size="2">II-4
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "SIGNATURES" -->
<DIV align="left"><A NAME="014"></A></DIV>

<P align="center">
<B><FONT size="2">SIGNATURES</FONT></B>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to the requirements of the Securities
Act of 1933, the Registrant certifies that it has reasonable
grounds to believe that it meets all of the requirements for
filing on Form&nbsp;S-3 and has duly caused this Registration
Statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the city of San Jose, state of
California, on the 11th&nbsp;day of December, 2003.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">JDS UNIPHASE CORPORATION
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="40%"></TD>
    <TD width="2%"></TD>
    <TD width="58%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">By:&nbsp;</FONT></TD>
    <TD align="center">
    <FONT size="2">/s/ KEVIN J. KENNEDY
    </FONT></TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <HR size="1" align="left" noshade></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    <FONT size="2">Kevin J. Kennedy, Ph.D.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    <I><FONT size="2">Chief Executive Officer</FONT></I></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    <I><FONT size="2">(Principal Executive Officer)</FONT></I></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to the requirements of the Securities
Exchange Act of 1933, this report has been signed below by the
following persons on behalf of the Registrant and in the
capacities and on the dates indicated.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="31%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="37%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="17%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Signature</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Title</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Date</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ KEVIN J. KENNEDY<BR>
    <HR size="1" noshade>Kevin J. Kennedy, Ph.D.
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Chief Executive Officer (Principal Executive
    Officer)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top">
    <FONT size="2">December&nbsp;11, 2003
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">*<BR>
    <HR size="1" noshade>Ronald C. Foster
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Executive Vice President and Chief Financial
    Officer (Principal Financial and Accounting Officer)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top">
    <FONT size="2">December&nbsp;11, 2003
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">*<BR>
    <HR size="1" noshade>Jozef Straus
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top">
    <FONT size="2">December&nbsp;11, 2003
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">*<BR>
    <HR size="1" noshade>Bruce D. Day
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top">
    <FONT size="2">December&nbsp;11, 2003
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">*<BR>
    <HR size="1" noshade>Robert E. Enos
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top">
    <FONT size="2">December&nbsp;11, 2003
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">*<BR>
    <HR size="1" noshade>Peter A. Guglielmi
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top">
    <FONT size="2">December&nbsp;11, 2003
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">*<BR>
    <HR size="1" noshade>Martin A. Kaplan
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Chairman
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top">
    <FONT size="2">December&nbsp;11, 2003
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">*<BR>
    <HR size="1" noshade>Richard T. Liebhaber
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top">
    <FONT size="2">December&nbsp;11, 2003
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">*<BR>
    <HR size="1" noshade>Casimir S. Skrzypczak
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top">
    <FONT size="2">December&nbsp;11, 2003
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <FONT size="2">By:
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">/s/ KEVIN J. KENNEDY<BR>
    <HR size="1" noshade>Kevin J. Kennedy,<BR>
    Attorney-in-fact
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center"><FONT size="2">II-5
</FONT>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "EXHIBIT INDEX" -->
<DIV align="left"><A NAME="015"></A></DIV>

<P align="center">
<B><FONT size="2">EXHIBIT INDEX</FONT></B>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="10%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="77%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exhibit Number</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Description of Exhibit</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1(1)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Restated Certificate of Incorporation.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.2(2)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Certificate of Designation of the Series&nbsp;B
    Preferred Stock.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.3(3)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Certificate of Designation of the Special Voting
    Stock.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.4(9)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amended and Restated Bylaws of JDS Uniphase
    Corporation.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1(4)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Exchangeable Share Provisions attaching to the
    Exchangeable Shares of JDS Uniphase Canada Ltd. (Formerly
    3506967 Canada Inc.).
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.2(5)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Voting and Exchange Trust Agreement between JDS
    Uniphase, JDS Uniphase Canada Ltd. and CIBC Mellon Trust Company.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.3(6)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Exchangeable Share Support Agreement between JDS
    Uniphase, JDS Uniphase Canada Ltd. and JDS Uniphase Nova Scotia
    Company.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.4(7)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Registration Rights Agreement between JDS
    Uniphase, JDS Uniphase Canada Ltd. and The Furukawa Electric
    Co., Ltd.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.5(8)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Fifth Amended and Restated Rights Agreement
    between JDS Uniphase and American Stock Transfer &#38; Trust
    Company.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.6(10)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amended and Restated Rights Agreement between JDS
    Uniphase Canada Ltd. and CIBC Mellon Trust Company (Amended and
    Restated as of February&nbsp;6, 2003).
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.7*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Indenture, dated as of October&nbsp;31, 2003
    between JDS Uniphase Corporation and The Bank of New York, as
    Trustee
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.8*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Global Note (included in Exhibit&nbsp;4.7)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.9*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Registration Rights Agreement, dated as of
    October&nbsp;31, 2003, by and among JDS Uniphase Corporation and
    Morgan Stanley &#38; Co. Incorporated, Goldman, Sachs &#38; Co.,
    and CIBC World Markets Corp.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">5</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Opinion of Morrison &#38; Foerster LLP
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">12</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Calculation of computation of ratio of earnings
    to fixed charges
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">23</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Consent of Independent Auditors
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">23</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.2*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Consent of Morrison &#38; Foerster LLP (included
    in Exhibit&nbsp;5.1)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">24</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Power of Attorney (included in the signature page
    to this Registration Statement)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">25</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Statement of Eligibility under the Trust
    Indenture Act of 1939 of a Corporation Designated to Act as
    Trustee of The Bank of New York (Form&nbsp;T-1)
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="4%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">*&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Previously filed
    </FONT></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="4%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference to Exhibit&nbsp;3.1 of
    the Company&#146;s Annual Report on Form&nbsp;10-K/ A filed
    February&nbsp;13, 2001.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference to Exhibit&nbsp;3(i)(d)
    of the Company&#146;s Annual Report on Form&nbsp;10-K filed
    September&nbsp;28, 1998.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(3)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference to Exhibit&nbsp;4.1 of
    the Company&#146;s Registration Statement on Form&nbsp;S-3 filed
    July&nbsp;14, 1999.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(4)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference to the Company&#146;s
    definitive Proxy Statement on Schedule&nbsp;14A filed
    June&nbsp;2, 1999.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(5)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference to Exhibit&nbsp;4.2 of
    the Company&#146;s Annual Report on Form&nbsp;10-K filed
    September&nbsp;1, 1999.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(6)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference to Exhibit&nbsp;4.3 of
    the Company&#146;s Annual Report on Form&nbsp;10-K filed
    September&nbsp;1, 1999.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(7)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference to Exhibit&nbsp;4.5 of
    the Company&#146;s Annual Report on Form&nbsp;10-K filed
    September&nbsp;1, 1999.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(8)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference to Exhibit&nbsp;1 of
    the Company&#146;s Registration Statement on Form&nbsp;8-A12G/A
    filed February&nbsp;18, 2003.
    </FONT></TD>
</TR>

</TABLE>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(9)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference to Exhibit&nbsp;3.5 of
    the Company&#146;s Annual Report on Form&nbsp;10-K filed
    September&nbsp;24, 2003.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(10)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference to Exhibit&nbsp;4.6 of
    the Company&#146;s Annual Report on Form&nbsp;10-K filed
    September&nbsp;24, 2003.
    </FONT></TD>
</TR>

</TABLE>
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-5.1
<SEQUENCE>3
<FILENAME>f94556a1exv5w1.txt
<DESCRIPTION>EXHIBIT 5.1
<TEXT>
<PAGE>
                                                                     EXHIBIT 5.1

                      [MORRISON & FOERSTER LLP LETTERHEAD]

                                December __, 2003

JDS Uniphase Corporation
1768 Automation Parkway
San Jose, California  95131

Ladies and Gentlemen:

At your request, we have examined the registration statement on Form S-3 filed
by JDS Uniphase Corporation, a Delaware corporation (the "Company"), with the
Securities and Exchange Commission on November 14, 2003 (the "Registration
Statement"), relating to the registration under the Securities Act of 1933, as
amended, of the resale by the holders thereof of $475,000,000 aggregate
principal amount of Zero Coupon Senior Convertible Notes due 2010 (the "Notes")
and the shares of the Company's common stock, $0.001 par value per share (the
"Conversion Shares") issuable upon conversion of the Notes (the Conversion
Shares together with the Notes, the "Securities"). The Notes were issued
pursuant to an Indenture dated as of October 31, 2003 ("Indenture") by and
between the Company and The Bank of New York, as Trustee. The Securities are
being offered by certain selling securityholders specified in the Registration
Statement.

In connection with this opinion, (i) we have reviewed the Registration
Statement, the Indenture, the Notes and certain of the Company's other corporate
records, documents, instruments and proceedings taken in connection with the
authorization and issuance of the Notes and the Conversion Shares, and (ii) we
have made such inquiries of officers of the Company and public officials and
have considered such questions of law as we have deemed necessary for the
purpose of rendering the opinions set forth herein.

We have assumed the genuineness of all signatures on and the authenticity of all
items submitted to us as originals and the conformity to originals of all items
submitted to us as copies. We also have relied, as to matters of fact, upon the
accuracy of representations and certificates of the Company's officers. We have
also relied on the Company's records and have assumed the accuracy and
completeness thereof. In making our examination of executed documents or
documents to be executed, we have assumed that the parties thereto, other than
the Company, had or will have the power, corporate or other, to enter into and
perform all obligations thereunder and have also assumed the due authorization
by all requisite action, corporate or other, and execution and delivery by such
parties of such documents and the validity and binding effect thereof on such
parties. The opinions hereinafter expressed are subject to the effect of
bankruptcy, insolvency, reorganization, arrangement, moratorium or other similar
laws relating to or affecting the rights of creditors generally, including,
without limitation, laws relating to fraudulent transfers or conveyances,
preferences and equitable subordination; limitations imposed by general
principles of equity upon the availability of equitable remedies or the
enforcement of provisions of the Notes and the Indenture; and the effect of
judicial decisions which have held that certain provisions are unenforceable
where their enforcement would violate the implied covenant of good faith and
fair dealing, or would be commercially unreasonable, or where their breach is
not material. In rendering the opinion in Paragraph 1 below, we have also
assumed that the global notes representing the Notes was duly authenticated by
the Trustee.

Based upon and subject to the foregoing, we are of the opinion that:

1. The Notes have been duly authorized and are valid and binding obligations of
the Company.

2. When issued upon conversion in accordance with the terms of the Notes and the
Indenture, the Conversion Shares will be validly issued, fully paid and
nonassessable.
<PAGE>
The opinions expressed herein are limited to the federal laws of the United
States of America, the General Corporation Law of the State of Delaware and the
laws of the State of New York, as currently in effect, and we express no opinion
of the effect of laws of any other jurisdiction on the opinions expressed
herein.

We consent to the use of this opinion as an exhibit to the Registration
Statement and further consent to all references to us in the Registration
Statement, the prospectus constituting a part thereof and any amendments
thereto.

                                Very truly yours,

                                /s/ Morrison & Foerster LLP




</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.1
<SEQUENCE>4
<FILENAME>f94556a1exv23w1.txt
<DESCRIPTION>EXHIBIT 23.1
<TEXT>
<PAGE>
                                                                    EXHIBIT 23.1

                         CONSENT OF INDEPENDENT AUDITORS

We consent to the reference to our firm under the caption "Experts" in Amendment
No. 1 to the Registration Statement (Form S-3, No. 333-110527) and related
Prospectus of JDS Uniphase Corporation for the registration of 96,153,823 shares
of its common stock and to the incorporation by reference therein of our report
dated July 21, 2003, with respect to the consolidated financial statements and
schedule of JDS Uniphase Corporation included in its Annual Report (Form 10-K)
for the year ended June 30, 2003, filed with the Securities and Exchange
Commission.

                                                           /s/ Ernst & Young LLP


San Jose, California
December 12, 2003

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