SAN JOSE, Calif., – August 2, 2007 – Bookham, Inc. (Nasdaq: BKHM), a leading provider of optical components, modules and subsystems, today announced financial results for its fourth quarter and fiscal year ended June 30, 2007.

Revenue for the fourth quarter of fiscal 2007 was $45.1 million, compared with $45.0 million in the third quarter of fiscal 2007 and $55.0 million in the fourth quarter of fiscal 2006. Sales to Nortel and Huawei each accounted for greater than 10 percent of total fourth quarter revenue.

Under generally accepted accounting principles (GAAP), gross margin in the fourth quarter of fiscal 2007 was 16 percent compared with a GAAP gross margin of 10 percent in the third quarter of fiscal 2007 and 9 percent in the fourth quarter of fiscal 2006.

Fourth quarter fiscal 2007 GAAP net loss was $13.6 million, or a net loss of $0.17 per share. This compares with a GAAP net loss of $24.3 million, or $0.35 per share, in the third quarter of fiscal 2007 and a GAAP net loss of $27.0 million, or $0.47 per share, in the fourth quarter of fiscal 2006.

Bookham provides certain supplemental non-GAAP financial measures, including non-GAAP net loss excluding non-cash stock and option-based compensation, charges such as impairment and restructuring, litigation settlement/recovery, early debt extinguishment, and acquired in-process research and development, along with a measure of Adjusted EBITDA, that also excludes these charges, plus the impact of taxes, net interest income/expense, depreciation and amortization, and net foreign currency translation gain/loss, to provide investors with the opportunity to use the same financial metrics as management to evaluate the Company’s performance. Bookham also believes these non-GAAP measures enhance the comparability and transparency of results for the period. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results.

Fourth quarter fiscal 2007 non-GAAP net loss, which excludes non-cash stock and option-based compensation of $1.2 million, was $10.8 million, or a net loss of $0.13 per share. This compares with a non-GAAP net loss of $18.7 million, or a net loss of $0.27 per share in the third quarter of fiscal 2007, and a non-GAAP net loss of $20.9 million, or a net loss of $0.37 per share in the fourth quarter of fiscal 2006. A reconciliation table of GAAP to non-GAAP measures is included in the financial tables section of this release and further discussion of these measures is also included later in this release.

Adjusted EBITDA in the fourth quarter of fiscal 2007, including a $2.3 million gain on sale of surplus operating assets, was negative $6.0 million. This compares with an Adjusted EBITDA of negative $14.1 million in the third quarter of fiscal 2007 and negative $13.4 million in the fourth quarter of fiscal 2006.

Cash, cash equivalents and restricted cash at the end of the fourth quarter of fiscal 2007 were $42.7 million, compared with $61.7 million at the end of the third quarter of fiscal 2007.

“In the fourth quarter, we made progress in lowering our overall cost structure, and as a result we have shown improvement in both our gross margin and Adjusted EBITDA. On the revenue side, we saw growth in several legacy products, particularly fixed wavelength 10Gb/s transmitters and receivers. Revenue from our tunable laser products was also up 60% from the previous quarter and is continuing to increase,” said Dr. Peter Bordui, chairman of the board and interim president and CEO of Bookham. “In product development, we made progress in getting our small form factor tunable transponder and 980nm submarine pump laser ready for market. We expect both products will positively impact revenue in the second half of the calendar year.”

“Three weeks ago we announced that Alain Couder will join Bookham as President and CEO, effective August 13. We believe that with his extensive international executive experience and strong operations background, Alain will be able to lead the Company in achieving sustained profitability, revenue growth, and improved shareholder value,” said Dr. Bordui.

Fiscal 2007 Financial Results

Net revenue for fiscal 2007 was $202.8 million, compared with $231.6 million in fiscal 2006. GAAP net loss for fiscal 2007 was $82.2 million, or a net loss of $1.17 per share. This compares with a GAAP net loss of $87.5 million, or a net loss of $1.87 per share in fiscal 2006.

Outlook and Guidance

“We are optimistic for the second half of the calendar year,” said Dr. Bordui. “We continue to execute on our cost reduction plans, which should further improve our overhead structure. At the same time, we are moving beyond the inventory reduction programs at several of our key customers that hurt our revenue in the first half of this calendar year. Through sales of both new and legacy products, we’re currently expecting increased revenue from our three largest customers along with continued penetration into several other tier-one accounts. Overall, we expect this will translate into continued improvements in both gross margin and Adjusted EBITDA in the second half of calendar 2007.”

The following forecasts are based on current expectations. These statements are forward looking, and actual results may differ materially. Please see the Safe Harbor statement in this release for a description of certain important risk factors that could cause actual results to differ, and refer to Bookham’s annual and quarterly reports on file with the Securities and Exchange Commission (SEC) for a more complete description of the risks. Furthermore, our outlook excludes items that may be required by GAAP such as restructuring and related costs, acquisition or disposal related costs, impairments of goodwill and other long-lived assets for which the likelihood and amounts are not determinable at this time, extraordinary items, as well as the expensing of stock options and restricted stock grants under SFAS 123R.

For the first quarter of fiscal 2008, ending September 29, 2007, excluding restructuring and other non-recurring charges, the Company expects:

• Revenue in the range of $50 million to $54 million

• Non-GAAP gross margin of between 18 percent and 22 percent

• Adjusted EBITDA of negative $3 million to negative $7 million

Conference Call

Bookham is scheduled to hold a conference call to discuss its fourth quarter fiscal 2007 financial results today at 5:00 p.m. ET/2:00 p.m. PT. To access the call, dial 1-973-582-2785. A live webcast of the call will also be available via the Investors section of the Company’s website at www.bookham.com.

A replay of the conference call will be available through August 9, 2007. To access the replay, dial 1-973-341-3080. The conference code for the replay is 9005455.