FORM OF PRESENTATION TO ELIGIBLE OPTIONHOLDERS
Published on October 22, 2002
- --------------------------------------------------------------------------------
EMCORE CORPORATION
- --------------------------------------------------------------------------------
[PICTURE OMITTED]
The Nasdaq Stock Market
Welcomes
[EMCORE LOGO]
[NASDAQ LOGO]
[EMCORE LOGO]
- --------------------------------------------------------------------------------
NASDAQ PERFORMANCE
- --------------------------------------------------------------------------------
NASDAQ NMS COMPOSITE INDEX
as of 24-Sep-2002
[GRAPHIC OMITTED]
[EMCORE LOGO]
- --------------------------------------------------------------------------------
TELECOM CRISIS - MISERY LOVES COMPANY
- --------------------------------------------------------------------------------
"More than a cyclical downturn, what they're experiencing is a full-blown
industrial depression, one that has wiped out half a million jobs and $2
trillion in U.S. market value" - Business Week 10/7/2002
- --------------------------------------------------------------------------------
COMPANY HIGH LOW NOW
- --------------------------------------------------------------------------------
EMCORE 81 1.50 1.50
- --------------------------------------------------------------------------------
AXTI 47 1.84 1.97
- --------------------------------------------------------------------------------
ANAD 112 2.00 2.15
- --------------------------------------------------------------------------------
TQNT 68 3.50 3.53
- --------------------------------------------------------------------------------
VISS 116 .66 .71
- --------------------------------------------------------------------------------
RFMD 92 5.15 6.15
- --------------------------------------------------------------------------------
KOPN 48 3.31 3.33
- --------------------------------------------------------------------------------
[EMCORE LOGO]
- --------------------------------------------------------------------------------
AGENDA
- --------------------------------------------------------------------------------
o "6+1" Stock Option Exchange Program
o Program Specifics
o Procedures
o Important Dates
o Questions & Answers
[EMCORE LOGO]
- --------------------------------------------------------------------------------
"6 + 1" EXCHANGE PROGRAM
- --------------------------------------------------------------------------------
WE ARE PLEASED TO ANNOUNCE THAT THE
BOARD OF DIRECTORS HAS APPROVED THE 6+1
EXCHANGE PROGRAM FOR EMCORE EMPLOYEES.
o Board of Directors and Corporate Executive Officers of the Company ARE
EXCLUDED
o HOW DOES A "6+1" EXCHANGE PROGRAM WORK?
- Cancellation of old options
- Wait 6 months and 1 day
- Grant new options at THEN current closing prices
[EMCORE LOGO]
- --------------------------------------------------------------------------------
"6 + 1" EXCHANGE PROGRAM
- --------------------------------------------------------------------------------
o WHY DO THIS?
- Stock options are a key element of total compensation, especially in
our highly competitive technology sector
- Many of our outstanding options have exercise prices significantly
higher than the current market price of our common stock
- In order for our stock option program to serve as an effective
incentive for employee retention, the options must provide an
opportunity to realize value within a reasonable time period
[EMCORE LOGO]
- --------------------------------------------------------------------------------
THE EMCORE "6+1"
STOCK OPTION EXCHANGE PROGRAM
- --------------------------------------------------------------------------------
o Offer to exchange options opens September 30, 2002
o All outstanding options with an exercise price of at least $4.00 per
share are eligible for exchange
o Options may be exchanged one-for-one for new options to be issued on
or about May 1, 2003
o During the cancellation period all options exchanged cease to exist
[EMCORE LOGO]
- --------------------------------------------------------------------------------
THE EMCORE "6+1"
STOCK OPTION EXCHANGE PROGRAM
- --------------------------------------------------------------------------------
o EXERCISE PRICE: The exercise price of the new options will be the
closing price of our common stock on the date on which they are
issued.
o VESTING/TERM: The new options have the same vesting and term as the
options for which they were exchanged.
o IN A NUTSHELL: The new options will essentially be the same as the
options for which they were exchanged, but with a new exercise price.
[EMCORE LOGO]
- --------------------------------------------------------------------------------
THE EMCORE "6+1"
STOCK OPTION EXCHANGE PROGRAM
- --------------------------------------------------------------------------------
o OPTIONS NOT EXCHANGED: Options not submitted for exchange are not
affected and no change will be made to your current options not
submitted.
o RECOMMENDATIONS: The Company makes no recommendation as to whether you
should tender or refrain from tendering your options for exchange
o DECISION: This is a personal investment decision and must be made by
you!
[EMCORE LOGO]
- --------------------------------------------------------------------------------
THE ELIGIBILITY REQUIREMENTS:
- --------------------------------------------------------------------------------
o To receive a grant of new options under this plan, you must be an
employee of EMCORE or its subsidiaries from the date you return your
options through the date we grant the new options (the later of May 1,
2003 or the first business day which is at least 6 months and a day
following the date we cancel the options accepted for exchange)
o If you should leave the employment of the Company for any reason
(voluntary or involuntary) before the date we grant the new options,
you will forfeit your new options
[EMCORE LOGO]
- --------------------------------------------------------------------------------
NEW OPTIONS
- --------------------------------------------------------------------------------
o The new options will be granted on the later of May 1, 2003 or the
first business day which is at least six months and one day after the
date we cancel the options accepted for exchange
o The new options will have an exercise price equal to the closing sale
price of one share of our common stock on the NASDAQ on the new (6
month + 1 day) grant date. Otherwise, the terms will be the same as
the old options.
[EMCORE LOGO]
- --------------------------------------------------------------------------------
RISKS: YOU WILL NOT RECEIVE ANY NEW OPTIONS
IF DURING THE 6 MONTHS CANCELLATION PERIOD .......
- --------------------------------------------------------------------------------
o You voluntarily decide to leave employment with EMCORE during the
cancellation period.
o Your employment is terminated during the cancellation period with or
without cause
o Your employment is terminated during the cancellation period due to
death or permanent disability
o You retire during the cancellation period
o EMCORE or your business/functional unit goes through a Change of
Control.
o EMCORE ceases doing business during the cancellation period
[EMCORE LOGO]
- --------------------------------------------------------------------------------
WHERE DO I GO WITH QUESTIONS?
- --------------------------------------------------------------------------------
o E-MAIL AT:
option_exchange@emcore.com
[EMCORE LOGO]
- --------------------------------------------------------------------------------
PROCEDURES
- --------------------------------------------------------------------------------
o COMPLETE THE "LETTER OF TRANSMITTAL" by filling in the space provided
which options you are canceling/exchanging, sign the letter and send
to:
EMCORE Corporation.
Attn: Stock Option Exchange
145 Belmont Drive
Somerset, NJ 08873
o The "Letter of Transmittal" must be RECEIVED by OCTOBER 30 2002
(documents may be hand delivered to Maureen Cymbaluk in Human
Resources)
[EMCORE LOGO]
- --------------------------------------------------------------------------------
IMPORTANT DATES
- --------------------------------------------------------------------------------
o SEPTEMBER 30, 2002: Stock Option Exchange Program Announced
o OCTOBER __ TO __ 2002: Employee Communication Meetings
o OCTOBER 30, 2002: Deadline for RECEIPT of Letter of Transmittal
(5:00PM EST)
o MAY 1, 2003: Target date for issuance of new options
[EMCORE LOGO]
- --------------------------------------------------------------------------------
QUESTIONS & ANSWERS
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
[EMCORE LOGO]