ALLIANCE FIBER OPTIC PRODUCTS, INC. REPORTS

AFOP
ALLIANCE FIBER OPTIC PRODUCTS, INC. REPORTS
SECOND QUARTER 2004 FINANCIAL RESULTS
Alliance Fiber Optic Products, Inc. reported its financial results for the second quarter ended June 30, 2004.

Revenues for the second quarter of 2004 totaled $3,252,000 as compared to $2,989,000 in the previous quarter, and $2,609,000 in the second quarter of 2003. The Company recorded a net loss for the second quarter of 2004 of $2,557,000, or $0.07 per share based on 38.7 million weighted average shares outstanding. This compares to a net loss for the first quarter of 2004 of $2,806,000, or $0.07 per share based on 37.8 million weighted average shares outstanding, and a net loss for the second quarter of 2003 of $2,140,000, or $0.06 per share based on 35.0 million weighted average shares outstanding.

Included in the net loss for the quarter ended June 30, 2004 are deferred stock compensation charges of $87,000. Included in the net loss for the quarter ended March 31, 2004 are deferred stock compensation charges of $129,000. Included in the net loss for the quarter ended June 30, 2003 are deferred stock compensation charges of $106,000.

Peter Chang, President and Chief Executive Officer, commented, "We are pleased not only with our financial results for the quarter, but with the progress we have made with new products, particularly our FTTX filters. During the quarter AFOP was awarded a significant contract, for a major U.S. FTTP deployment, utilizing our Fiber-to-the-Home TriWaveÔ filters."