Optical Cable Buys Applied Optical Systems

Transaction Broadens OCC's Product Lines and Builds on its Position as a Leading Provider of Fiber Optic Cables for the Military and Harsh Environment Markets

Optical Cable Corporation (Nasdaq GM: OCCF) ("OCC") today announced that it has acquired Applied Optical Systems, Inc. ("AOS"), a designer, developer and manufacturer of specialty fiber optic connectors and connectivity solutions for military and harsh environment applications. The acquisition was completed on October 31, 2009, and Applied Optical Systems is now a wholly owned subsidiary of OCC.

OCC acquired Applied Optical Systems by exercising a warrant issued by AOS in April 2005 (as amended) for the issuance of new equity and acquiring all of the remaining capital stock of AOS from AOS's shareholders.

"The acquisition of Applied Optical Systems is another important step forward in OCC's efforts to provide our customers with more complete cabling and connectivity solutions. Further, the acquisition of Applied Optical Systems builds on OCC's strong existing presence in the military and harsh environment markets," stated Neil Wilkin, President and CEO of Optical Cable Corporation.

Applied Optical Systems' product offering includes specialty fiber optic connectors and connectivity solutions for military, mining, oil and gas, industrial, broadcast and other harsh environment applications. AOS is located near Dallas, Texas, and employs approximately 40 persons, including engineering, manufacturing and office personnel. AOS's net sales were approximately $7.0 million (unaudited) for the twelve months ended September 30, 2009.

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