Once the new agreement becomes effective, GigOptix's Bothell office space will be reduced to 11,666 square feet as much of the space previously used has been vacated over the past year to improve efficiency. In addition, GigOptix will extend its lease for a period of five years with a new Base Rent schedule as follows:

           Months       Monthly Installment
           1-14         $27,013
           15-24        $17,499
           25-36        $18,024
           37-48        $18,565
           49-60        $19,122

This compares to a current monthly Base Rent of $43,641 and which would be increased in 2010.

To accommodate all the functions in the reduced space GigOptix plans to invest approximately $150,000 in tenant improvements. As an additional consideration in the new agreement the Company will pay $175,000. The total of this $325,000 is to be funded through the release of currently restricted cash otherwise not available to the company through March 2011.

During the period of 17 months through March 2011 the new lease will result in a projected cash savings to the Company is $752,785. Furthermore, net of the payment of the $175,000 funded by the release of restricted cash the total projected savings to the Company for this 17-month period are $577,785.

For more information pertaining to this Amendment, please visit www.sec.gov to view the Form 8-K in its entirety.

About GigOptix Inc.

GigOptix is a leading fabless manufacturer of electronic engines for the optically connected digital world. The Company offers a broad portfolio of high speed electronic devices including polymer electro-optic modulators, modulator drivers, laser drivers and TIAs for telecom, datacom, Infiniband and consumer optical systems, covering serial and parallel communication technologies from 1G to 120G. For more information, please visit www.GigOptix.com.

Forward Looking Statements

Statements made in this release, other than statements of historical fact, are forward-looking statements, including any statement that refers to expectations, projections or other characterizations of future events or circumstances and those which can be identified by the use of forward-looking terminology such as "expects," "plans," "may," "should," or "anticipates" and other similar expressions. Forward-looking statements are subject to a number of known and unknown risks, which might cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include the satisfaction of conditions that may affect the commencement of the Effective Date, the actual amount of savings for the Company, the satisfaction of the contingency of the approval of the landlord's lender and those risks and uncertainties described in GigOptix's periodic reports filed with the SEC, and in news releases and other communications. GigOptix disclaims any intention or duty to update any forward-looking statements made in this release.

SOURCE: GigOptix Inc.

GigOptix Inc. 
Media: 
Parker Martineau, 650-424-1937 x102 
Corporate Communications Manager 
pr@gigoptix.com 
or 
Investor Relations: 
Alliance Advisors, LLC 
Alan Sheinwald, 914-669-0222 
President 
asheinwald@allianceadvisors.net