Orckit Receives Court Approval for Arrangement With Note Holders

Orckit Communications Ltd.

(the "Company") today announced that it has received the final approval of the District Court of Tel Aviv of the arrangement with the holders of its Series A convertible notes and Series B convertible notes, following the approval of the Tel Aviv Stock Exchange and the Israel Securities Authority. The arrangement is expected to become effective at a closing to be held next week. Pursuant to the terms of the arrangement, the conversion price of the Series A notes will be reduced from NIS 63.00 (approximately $16.34) per share to NIS 1.37 per share (approximately $0.36) during the period expected to commence on July 2, 2012 and end on July 21, 2012. Thereafter, the conversion price of the Series A notes will increase to NIS 7.61 per share (approximately $1.97). The conversion price of the Series B notes will be reduced from NIS 10.00 (approximately $2.59) per share to NIS 7.61 per sharere (approximately $1.97) during the period expected to commence on July 2, 2012 and end on July 11, 2012. Thereafter, the conversion price of the Series B notes will be further reduced to NIS 1.83 per share (approximately $0.47) for the period expected to end on August 5, 2012. Thereafter, the conversion price of the Series B notes will return to NIS 7.61 per share. Currently the Company has the right to force conversion of the Series A notes at approximately $16.34 per share if the prevailing market price of its ordinary shares is at least $30.00 per share and does not have the right to force conversion of the Series B notes. Starting on or about July 21, 2012 with respect to the Series A notes and starting on or about August 6, 2012 with respect to the Series B notes, the Company will have the right to force the conversion of the Series A notes and/or the Series B notes at the price of $1.97 per share if the prevailing market price of its ordinary shares is at least $3.00 per share. Prevailing market price is the price on the Tel Aviv Stock Exchange for any 20 trading days within a period of 30 consecutive trading days.