EXFO solution selected by US Tier 1 service provider for groundbreaking network transformation

US$4.9M deal for real-time network topology software

QUEBEC CITY, Jan. 8, 2019 /PRNewswire/ - EXFO Inc. (NASDAQ: EXFO), (TSX: EXF), the communications industry's test, monitoring and analytics experts, announced today that a US Tier 1 service provider has selected EXFO's real-time network topology software (EXFO Ontology) to facilitate groundbreaking network transformation.

EXFO's network topology software, which essentially maps network resources to related services in real-time, is used by service providers to obtain a unified view of their network. Ultimately, this information assures service delivery to end users.

In this particular case, the Tier 1 service provider will leverage EXFO's software solution to support game-changing operational automation and network integration. This challenge is compounded by the massive scale and complexity involved in combining legacy and next-generation technologies under a single, comprehensive network.

EXFO's unique solution will help the customer address these challenges by:

• Locating and combining information from multiple data sources and transforming it into a validated and accurate searchable semantic model
• Mapping and tracking the customer's network resources from end-to-end and generating a cohesive dataset that can be used to leverage those resources to their full potential

The contract win is valued at US$4.9 million.

"EXFO's innovative software solution provides this industry leader with unmatched visibility into their network, driving operational excellence and service agility," said Philippe Morin, EXFO's Chief Executive Officer. "To deliver superior customer experience, service providers must have a unified understanding of their network resources and be able to automate their consumption and change in real time across legacy and virtual networks. As this Tier 1 service provider continues its extensive digital transformation, EXFO's real-time network topology solution is bringing their systems and people together in a way that simply wasn't possible before."

Forward-looking statements

This news release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, and we intend that such forward-looking statements be subject to the safe harbors created thereby. Forward-looking statements are statements other than historical information or statements of current condition. Words such as may, expect, believe, plan, anticipate, intend, could, estimate, continue, or similar expressions or the negative of such expressions are intended to identify forward-looking statements. In addition, any statements that refer to expectations, projections or other characterizations of future events and circumstances are considered forward-looking statements. They are not guarantee of future performance and involve risks and uncertainties. Actual results may differ materially from those in forward-looking statements due to various factors including, but not limited to, macroeconomic uncertainty, including trade wars; our ability to successfully integrate businesses that we acquire; capital spending and network deployment levels in the telecommunications industry (including our ability to quickly adapt cost structures to anticipated levels of business and our ability to manage inventory levels with market demand); future economic, competitive, financial and market conditions; consolidation in the global telecommunications test, service assurance and analytics solutions markets and increased competition among vendors; capacity to adapt our future product offering to future technological changes; limited visibility with regard to the timing and nature of customer orders; delay in revenue recognition due to longer sales cycles for complex systems involving customers' acceptance; fluctuating exchange rates; concentration of sales; timely release and market acceptance of our new products and other upcoming products; our ability to successfully expand international operations and to conduct business internationally; and the retention of key technical and management personnel. Assumptions relating to the foregoing involve judgments and risks, all of which are difficult or impossible to predict and many of which are beyond our control. Other risk factors that may affect our future performance and operations are detailed in our Annual Report, on Form 20-F, and our other filings with the U.S. Securities and Exchange Commission and the Canadian securities commissions. We believe that the expectations reflected in the forward-looking statements are reasonable based on information currently available to us, but we cannot assure you that the expectations will prove to have been correct. Accordingly, you should not place undue reliance on these forward-looking statements. These statements speak only as of the date of this document. Unless required by law or applicable regulations, we undertake no obligation to revise or update any of them to reflect events or circumstances that occur after the date of this document.

About EXFO

EXFO (NASDAQ: EXFO) (TSX: EXF) develops smarter test, monitoring and analytics solutions for fixed and mobile network operators, webscale companies and equipment manufacturers in the global communications industry. Our customers count on us to deliver superior network performance, service reliability and subscriber insights. They count on our unique blend of equipment, software and services to accelerate digital transformations related to fiber, 4G/LTE and 5G deployments. They count on our expertise with automation, real-time troubleshooting and big data analytics, which are critical to their business performance. We've spent over 30 years earning this trust, and today 1,900 EXFO employees in over 25 countries work side by side with our customers in the lab, field, data center and beyond.

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SOURCE EXFO Inc.