Tellabs Provides Preliminary Estimates for Fourth Quarter 2006

Naperville, Illinois (ots/PRNewswire) -

Based on currently available information, Tellabs provided a
preliminary revenue estimate for the fourth quarter of 2006, ended
Dec. 29. Fourth-quarter 2006 revenue is expected to range from US$455
million to US$470 million.

Fourth-quarter GAAP earnings per share, assuming dilution, are
expected to range from 5 cents to 7 cents. Non-GAAP earnings per
share, assuming dilution, are expected to range from 10 cents to 12
cents. Non-GAAP earnings per share exclude charges for equity-based
compensation of about 2 cents, as well as amortization of intangibles
and restructuring. GAAP and non-GAAP earnings per share are
reconciled in the table below.

These preliminary estimates were driven by lower than expected
revenue from some large North American customers, an unfavorable
shift in product mix, revenue deferrals related to a new product
launch, and a lower effective tax rate.

"Uncertainty surrounding telecom industry consolidation led to
lower than expected revenue in North America during the fourth
quarter," said Krish A. Prabhu, Tellabs president and chief executive
officer. "We expect the revenue impact to be temporary since, as 2007
begins, our customers continue to see growing user demand for
bandwidth. Tellabs remains well-positioned to benefit from this."

Earnings Announcement and Investor Teleconference - Tellabs will
announce fourth-quarter 2006 results on Tuesday, Jan. 23, with a news
release at 6 a.m. Central Standard Time and an investor
teleconference at 7:30 a.m. Central Standard Time, when the company
will discuss its fourth-quarter results and provide its outlook for
the first quarter of 2007. Internet users can hear a simultaneous
webcast of the teleconference at www.tellabs.com; click on the
webcast icon. A taped replay of the call will be available beginning
at approximately 8:30 a.m. Central Standard Time Jan. 23, until 8:30
p.m. Central Standard Time on Thursday, Jan. 25, at +1-800-642-1687.
(Outside the United States, call +1-706-645-9291.) When prompted,
enter the Tellabs conference ID number: 5534430. A podcast of the
call will be available at www.tellabs.com/news/feeds/ on Jan. 23.

Reconciliation of GAAP Earnings per Share Estimate to Non-GAAP
Earnings per Share Estimate (Unaudited)
(In US$)
Fourth Quarter 2006
Low High
Estimated GAAP earnings per share, assuming
dilution $0.05 $0.07
Add:
Estimated equity-based compensation expense .02 .02
Estimated amortization of purchased intangible
assets and restructuring .03 .03
Estimated non-GAAP earnings, assuming dilution $0.10 $0.12

Tellabs advances telecommunications networks to meet the evolving
needs of users. Broadband solutions from Tellabs enable service
providers to deliver high-quality voice, video and data services over
wireline and wireless networks around the world. Ranked among the
BusinessWeek InfoTech 100, Tellabs (Nasdaq: TLAB) is part of the
NASDAQ-100 Index, NASDAQ Global Select Market and the S&P 500.
www.tellabs.com

Preliminary Results - These estimates are based on very
preliminary information about the fourth quarter of 2006. Although
the quarter is completed, the company is still in the early stages of
its standard financial reporting closing procedures. Accordingly, as
the company completes its normal quarter and year-end closing and
auditing processes, actual results could differ from these
preliminary estimates.

Forward-Looking Statements - This news release contains
forward-looking statements that involve risks and uncertainties.
Actual results may differ from the results discussed in the
forward-looking statements. Factors that might cause such a
difference include, but are not limited to, risks associated with:
the competitive landscape, including pricing and margin pressures,
the introduction of new products, the entrance into new markets, the
ability to secure necessary resources, the response of customers and
competitors, industry consolidation and the economic changes
generally impacting the telecommunications industry. The company
undertakes no obligation to revise or update these forward-looking
statements to reflect events or circumstances after today or to
reflect the occurrence of unanticipated events. For a more detailed
description of the risk factors, please refer to the company's SEC
filings.

Tellabs(R) and Tellabs logo(R) are trademarks of Tellabs or its
affiliates in the United States and/or other countries. Any other
company or product names mentioned herein may be trademarks of their
respective companies.

Web site: http://www.tellabs.com

ots Originaltext: Tellabs
Im Internet recherchierbar: http://www.presseportal.de

Contact:
INVESTORS: Tom Scottino, +1-630-798-3602, tom.scottino@tellabs.com,
or MEDIA: George Stenitzer, +1-630-215-6751,
george.stenitzer@tellabs.com, both for Tellabs