Orckit Communications Ltd.

  Orckit facilitates telecommunication providers' delivery of high capacity broadband residential, business and mobile services over wireline or wireless networks with its Orckit-Corrigent family of products. With 20 years of field experience with Tier-1 customers located around the world and sound leadership, Orckit has a firm foothold in the ever-developing world of telecommunication. 
  Orckit-Corrigent's product portfolio includes Packet Transport Network (PTN) switches, an MPLS and MPLS-TP dual stack based portfolio enabling advanced packet, as well as legacy services over packet networks with a wide set of transport features. Orckit-Corrigent markets its products directly and indirectly through strategic alliances, as well as through distribution and reseller partners worldwide.

  CE+T solutions provide a myriad of residential triple-play, enterprise VPN and mobile backhauling applications, addressing metro area networks.
  The CE+T solution introduced radically new economics that enable profitable delivery of packet services as well as legacy TDM services in a converged networking infrastructure, while maintaining telecom grade quality.
  The CE+T breakthrough architecture solves the metro aggregation network dilemma for service providers worldwide by allowing them to bridge their existing SONET/SDH infrastructure with next-generation, packet-based, data, voice and video services. In doing so, capital expenditures and operating expenses are lowered, while revenue-generating opportunities are created.
  Established telecommunications service providers worldwide are leveraging Orckit-Corrigent's CE+T solutions to enhance their existing MPLS networks and provide reliable and affordable packet and TDM services to their customers.

  In 2011, German Carrier VSE NET selected Orckit-Corrigents Packet Transport Network solution to expand its residential and enterprise services network; Cegecom S.A. selected Orckit-Corrigent’s Packet Transport Network solutions to expand enterprise services network offering; and leading German carrier K-net selected Orckit-Corrigent’s Packet Transport Network solution and 3M services support to upgrade its B2B network. Also, Orckit-Corrigent Packet Transport Network solution was selected by three new service providers in March 2011. 

  In 2010, MetroNet – the first Mexican metro network operator – successfully deployed the first-ever 10GE MPLS metro ring in Mexico using Orckit-Corrigent's CE+T solution. Also in 2010, the company received a multi-million dollar follow-on order through its partnership with Alphion ITI for the immediate delivery of its products to support BSNL's large scale network deployment in India based on GPON and Carrier Ethernet technologies. The company sees India as a major growth driver, particulary given the government of India's directive to stimulate broadband access countrywide. In April 2011, the company established a new R&D branch in India in order to strengthen R&D efforts of Orckit-Corrigent's PTN solutions for Indian customers, as well as to extend the company’s global R&D efforts.  In the first six months of 2011, the company successfully completed an intensive trial with one of the largest mobile operators in India and is actively participating in trials and discussions with large service providers. 
  Orckit is continuing its evaluation of new technologies and related product opportunities and is engaging in extensive new technology research and development activities.

	Three Months Ended June 30		Six Months Ended June 30
Income Statement Data ($m)	2011	2010	2011	2010
Total Revenues	5.0	1.7	9.5	3.3
Gross Profit	2.2	0.5	4.0	0.9
Gross Margins  %	43%	28%	42%	26%
Operating Income	-4.0	-7.2	-9.3	-14.5
Interest, Net	-0.3	-0.5	-0.7	-0.5
Net Income	-5.0	-7.7	-11.0	-13.9
Diluted Earnings Per Share ($)	-0.22	-0.40	-0.49	-0.77

	Year Ended December 31
Income Statement Data ($m)	2010	2009	2008
Total Revenues	14.6	12.7	17.3
Gross Profit	5.3	4.5	7.7
Gross Margins %	36%	35%	44%
Operating Income	-25.3	-24.8	-34.4
Interest, Net	-1.7	-0.3	2.1
Net Income	-25.4	-23.1	-32.3
Diluted Earnings Per Share ($)	-1.33	-1.40	-1.97

Balance Sheet Data ($m)	6/30/11	12/31/10
Total Cash & ST Investments	17.4	19.2
Current Assets	32.0	32.2
Total Assets	52.6	53.3
Current Liabilities	39.2	12.6
Total Equity	0.6	11.3

Key Financial Ratios	6/30/11	12/31/10
Current Ratio	0.8x	2.6x
L-T Debt/Equity	1330.8%	222%

Dividend Policy

Company does not currently pay dividends.