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Applied Optoelectronics Receives Initial Orders from New Hyper-Scale Datacenter Customer

Sugar Land, TX, Aug. 25, 2016 – Applied Optoelectronics, Inc. (NASDAQ: AAOI), a leading provider of fiber-optic access network products for the internet datacenter, cable broadband, and fiber-to-the-home markets, today announced that it has received initial orders for its market-leading 40 Gbps QSFP+ and 100 Gbps QSFP28 optical transceiver modules from a new hyper-scale datacenter customer.

“After an extensive period of product testing and qualification, we are pleased to have the opportunity to provide our industry-leading products to a new large datacenter customer. The initial orders we have received, totaling more than 10,000 transceivers of various product types, are for delivery over the next couple of quarters, and represent a compelling opportunity to develop a long-term relationship with this new customer,” said Dr. Thompson Lin, Applied Optoelectronics, Inc. founder, president and CEO. “We believe we are the market leader within our current datacenter customers and we are excited to have the opportunity to demonstrate our capabilities to this new customer as the relationship deepens over time.”

AOI’s 40 Gbps and 100 Gbps optical transceivers are predominantly deployed in intra-datacenter applications and are used for high speed switching and routing connectivity. AOI has invested over $70 million in the last four quarters on state-of-the-art production and R&D facilities to enable cost-effective, high volume production for its datacenter and CATV broadband product lines, including in-house laser diode and light engine production.

For more information about other AOI datacenter products, please contact AOI's sales department at sales@ao-inc.com, or by telephone at 281-295-1800.

About Applied Optoelectronics

Applied Optoelectronics Inc. (AOI) is a leading developer and manufacturer of advanced optical products, including components, modules, and equipment. AOI's products are the building blocks for broadband fiber access networks around the world, where they are used in the CATV broadband, internet datacenter, and fiber-to-the-home markets. AOI supplies optical networking lasers, components and equipment to tier-1 customers in all three of these markets. In addition to its corporate headquarters, wafer fab and advanced engineering and production facilities in Sugar Land, TX, AOI has engineering and manufacturing facilities in Taipei, Taiwan and Ningbo, China. For additional information, visit www.ao-inc.com. Applied Optoelectronics, Inc. and the related AOI logo are trademarks of Applied Optoelectronics, Inc.

Investor Relations Contacts:

Applied Optoelectronics, Inc.                       The Blueshirt Group, Investor Relations
Dr. Stefan Murry                                                Maria Riley
Chief Financial Officer                                     +1-415-217-7722                   
ir@ao-inc.com                                                 ir@ao-inc.com

Media Enquiries:

Willis Chen
281-295-1807
wchen@ao-inc.com