Xtera Prices 5M Share IPO @$5.00/Share

Xtera Communications, Inc. announced today its initial public offering of 5,000,000 shares of its common stock at a price to the public of $5.00 per share. The shares began trading today on The NASDAQ Global Market under the symbol "XCOM." All of the shares in the offering are being offered by Xtera. In addition, Xtera has granted the underwriters a 30-day option to purchase up to an additional 750,000 shares of common stock to cover over-allotments, if any. Needham & Company, LLC, Cowen and Company, LLC and BMO Capital Markets Corp. are acting as joint book-running managers for the offering. The shares are being sold pursuant to a registration statement declared effective by the Securities and Exchange Commission on November 12, 2015. The offering of these securities is only being made by means of a written prospectus forming a part of the effective registration statement. A copy of the prospectus related to the offering may be obtained by contacting Needham & Company, LLC, Attention: Syndicate Prospectus Department, 445 Park Avenue, 4th Floor, New York, New York 10022, Telephone: 1-800-903-4696, Email: prospectus@needhamco.com; Cowen and Company, LLC, c/o Broadridge