Optical Cable Corporation Acquires Applied Optical Systems, Inc.

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

ROANOKE, Va. -- 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.

About Optical Cable Corporation

Optical Cable Corporation is a leading manufacturer of a broad range of fiber optic and copper data communications cabling and connectivity solutions primarily for the enterprise market, offering an integrated suite of high quality, warranted products which operate as a system solution or seamlessly integrate with other providers' offerings. OCC's product offerings include designs for uses ranging from commercial, enterprise network, datacenter, residential and campus installations to customized products for specialty applications and harsh environments, including military, industrial, mining, oil and gas and broadcast applications. OCC products include fiber optic cable, copper and fiber optic connectors, copper and fiber optic patch cords, racks, cabinets, datacom enclosures, patch panels, face plates, multi-media boxes and cable and connectivity management accessories, and are designed to meet the most demanding needs of end-users, delivering a high degree of reliability and outstanding performance characteristics.
OCC is internationally recognized for pioneering the design and production of fiber optic cables for the most demanding military field applications, as well as of fiber optic cables suitable for both indoor and outdoor use, and creating a broad product offering built on the evolution of these fundamental technologies. With the acquisition of SMP Data Communications in May 2008, OCC also is now internationally recognized for its role in establishing copper connectivity data communications standards, through its innovative and patented technologies.

Founded in 1983, OCC is headquartered in Roanoke, Virginia with offices and manufacturing and warehouse facilities located both in Roanoke, Virginia and near Asheville, North Carolina. OCC primarily manufactures its high quality fiber optic cables at its ISO 9001:2008 registered and MIL-STD-790F certified facility located in Roanoke, Virginia and its high quality connectivity products at its ISO 9001:2000 registered facility located near Asheville, North Carolina.

Further information about OCC is available on the Internet at www.occfiber.com.

About Applied Optical Systems, Inc.

Applied Optical Systems, Inc. designs, develops and manufactures a broad range of specialty fiber optic connectors and connectivity solutions primarily for use in military and other harsh environment applications. Founded in 2003, Applied Optical Systems has offices and a manufacturing facility is located in Plano, Texas, near Dallas. Applied Optical Systems is a wholly owned subsidiary of Optical Cable Corporation (Nasdaq GM: OCCF).

Further information about AOS is available on the Internet at www.appliedopticalsystems.com.