C-COR ANNOUNCES AGREEMENT TO PURCHASE OPTINEL SYSTEM

C-COR Incorporated, a global provider of broadband communications products, software systems, and services,announced that it has entered into an agreement to acquire the business of Elkridge, Maryland-based Optinel Systems, Inc., a privately held provider to the cable industry of optical Ethernet transport solutions from the network core to the customer premise for residential and business services, for an initial cash payment of approximately $9.5 million and the assumption of certain liabilities. The purchase agreement also provides for the payment of an additional $6 million in contingent cash consideration if certain sales objectives are achieved in the thirteen-month period following closing. The purchase transaction is subject to customary closing conditions and is expected to be completed in the first quarter of C-COR抯 fiscal year 2005. With the completion of the purchase, Optinel will become part of C-COR抯 Broadband Communications Products business segment. C-COR anticipates that, in the twelve months following closing, the Optinel acquisition would add approximately $7 million in net sales and contribute to earnings after integration is completed, which is expected by the end of C-COR抯 fiscal year 2005.