Emcore gets waiver from convertible holders

New York, April 9 - Emcore Corp. said that the holders of a majority of its 5% convertible senior subordinated notes due 211 agreed to waive until Feb. 29, 2008 any default related to its failure to file its form 10-K annual report for the fiscal year ended Sept. 30, 2006 and its form 10-Q quarterly report for the quarter ended Dec. 31, 2006.

In return, Emcore agreed to increase the coupon on the notes to 5.5% from 5% and cut the conversion price to $7.01 from $8.09. Emcore stock closed at $4.79 Monday.

In addition, the investors gave Emcore the option to buy back 12% of the notes they hold.

Emcore said the effect a reduction in debt with virtually no additional dilution to shareholders as a result of the change in the conversion price.

Emcore was also allowed by the Nasdaq Listing Qualifications Panel to remain listed on Nasdaq subject to filing its 10-K and 10-Q by May 10.

Based in Somerset, N.J., Emcore is a provider of compound semiconductor-based components and subsystems for the broadband, fiber optic, satellite and solar power markets.

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