Alliance Fiber Optic Products, Inc.

Ticker: AFOP

Safe Harbor Under the Private Securities Litigation Act of 1995

Except for historical information, the matters discussed in this presentation contain forward-looking statements regarding future trends or events, including, but not limited to, the development of our technology, the efficiency of our manufacturing capabilities, the development of our manufacturing capabilities, the development of our facilities in the Far East, estimates of our revenues, the development of new products, and our anticipated financial results, that involve risks and uncertainties. Please be aware that these statements are only predictions and that actual events or results may differ materially. The Company is required to file documents from time to time with the Securities and Exchange Commission. These documents identify important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. Please refer to the Company s prospectus and other interim reports as filed with the Companys Securities and Exchange Commission for a discussion of those risk factors. The Company assumes no obligation to update the information in this presentation.

2011 AFOP. All rights reserved.

Unique Investment Story

1 2 3

Profitable and expanding business Strong financial position Multiple served markets; diversified customer base Broad product line manufacturer Innovative technology; extensive patent portfolio Cost effective Asian operations from inception

4 5 6

2011 AFOP. All rights reserved.

Company Background
Stock Exchange Corporate Location Asia Operations

History y

Founded In 1995
Acquired F.O. Division of Hong Hai/ Foxconn

NASDAQ

Sunnyvale, California
275 Gibraltar Dr.

Tu-Cheng Taiwan ShenZhen, ShenZhen China

AFOP

Industry Expertise

Financial Strength

Management Bandwidth

World Class Factories

2011 AFOP. All rights reserved.

Optics Revolution

Fiber to Home / Consumer Fiber

Mark Mark kets kets

Metro Access
Long Haul Core

Broadband Access

Metro Core

Time
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Multiple Bandwidth Drivers

Cloud Computing p g

AFOP CCWDM AFOP FAU, Micro- optics & Connectivity

ROADM

ROADM

AFOP Connectivity

Metro Core and Long Haul ROADM Upgrades 40G to 100G

3G/4G Cellular Backhaul and CATV

Office Parks Small Businesses
ONT ONT

Residential
ONT ONT

FTTP Overlay
Small Businesses

AFOP Connectivity
FTTP Full Build

AFOP Passives

Copper Feeder

Split ter Hub

AFOP Splitters Split

ter
Splitter

ONT

ONT

AFOP Connectivity
ONT ONT

Circuit Switch VW DM

ONT

AFOP Connectivity

AFOP Connectivity

AFOP Passives

ONT

ONT

Splitter

O L T

Video

AFOP Connectivity

* Courtesy of Verizon

Enterprise 10G to 40/100G Ethernet

2011 AFOP. All rights reserved. 6

FTTH NGPON

AFOPs Mission

AFOP designs and manufactures components, modules and subsystems that empower dynamic optic networks and facilitate the migration of fiber optics g p from the long haul through to the last mile

2011 AFOP. All rights reserved.

AFOPs Strategy

I. Strong Multi-Platform Product Portfolio Multi Platform

Increasing Spend Capture

II. Innovative Constructive Technologies g

Market Control

III. Integration for Revenue; Devices for Profits

Vertical Leverage for Increasing Returns

IV. IV Highest Q/C Manufacturing Globally

Long Term Competitiveness

2011 AFOP. All rights reserved.

Connectivity Product Lines

Basic Building Blocks

Economic Solutions for Access Market

2011 AFOP. All rights reserved.

Optical Passives Product Lines

Broad and Advanced Product Offering

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Integrated Photonic Solutions

ODM solutions with integrated multifunctionality Embedded AFOP devices: Passives & Connectivity Custom packaging y flexibility

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Innovative Technology
Innovative and patented solutions for 40/100G Ethernet FOC approved FTTX connectivity products

Submicron precision FAU for ROADMs Advanced packaging technology for dynamic Cloud Network components
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Manufacturing Excellence

Modular Operations Allow Flexibility

DFM for All Products

Highest Q/C Ratio

Global Logistics Asia Operations From Inception
Vertical Integration Drives Competitive Cost @ Volume

Key Performance Drivers

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Multiple Markets Served

Metro Access Broadband

FTTX
FTTH
FTTN
FTTC

Long Haul

Premise Wiring Enterprise Storage

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Expanding Customer Base

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Financial Overview

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Financial Highlights Stable revenues stream from business Continuous profitability for years Leading operating performance Strong balance sheet

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Quarterly Revenues
$14.0 $12.0 $10.0
$9.2 $9.2 $9.4 $ $8.2 $8.4 $7.6 $7.7 $7.0 $7.5 $13.3 $12.1 $10.8 $10.3 $9.4 $8.7 $6.7 $11.6 $11 6

( (in millions s)

$8.0 $6.0 $4.0 $2.0 $-

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2007

2008

2009

2010

2011

* Please refer to SEC filing for the exact numbers. 2011 AFOP. All rights reserved. 18

Quarterly Operating Performance

03/31/10 Revenues Gross Margin R&D Sales, G & A Operating Profits Operating Margin EBITDA EPS $8.406 32.1% $0.709 $1.494 $0.492 $0 492 5.9% $0.770 $0.08 06/30/10 $12.086 33.5% $0.870 $1.607 $1.575 $1 575 13% $1.889 $0.19 09/30/10 $13.276 35.5% $0.882 $1.621 $2.210 $2 210 16.6% $2.596 $0.24 12/31/10 $11.638 35.0% $0.757 $1.495 $1.823 $1 823 15.7% $2.237 $0.20 03/31/11 $9.450 32.1% $ $0.718 $1.578 $738 7.8% $1.184 $0.12

* Pro Forma Results: $ in millions * Please refer to SEC filing for the exact numbers
2011 AFOP. All rights reserved. 19

Annual Revenues

$50 $50 $40 $27

(in millions)

$45 $39 $34 $21 $15 $30

$30 $20 $10 $

YR2004 YR2005 YR2006 YR2007 YR2008 YR2009 YR2010

* Please refer SEC filing for the exact numbers. * Please refer toto SEC filing for the exact numbers.
2011 AFOP. All rights reserved. 20

Annual Operating Performance

2006 Revenues Gross Margin R&D Sales, G & A Operating P&L Operating Margin EBITDA EPS * $26.8 27.7% $3.0 $5.2 ($1.001) (3.7%) $0.873 $0.08
Pro Forma Results: $ in millions
2011 AFOP. All rights reserved. 21

2007 $33.8 31.5% $3.2 $5.6 $1.606 4.8% $3.288 $0.41

2008 $38.8 31.4% $3.2 $5.8 $2.950 7.6% $4.366 $0.49

2009 $29.8 31.3% $3.0 $5.6 $ $0.751 2.5% $1.903 $0.17

2010 $45.4 34.2% $3.2 $6.2 $6.099 13.4% $7.492 $0.70

* Please refer to SEC filing for the exact numbers

Balance Sheet Summary

12/31/07 Cash & Investments Long-Term Liability Stockholders Equity
(Trailing Quarter) DSO (T ili Q t )

12/31/08

12/31/09

12/31/10

03/31/11

$36.5
$1.0 $42.9 53 days 5.0x

$40.3
$0.9 $48.0 58 d days 4.0x

$42.3
$0.8 $48.9 57 d days 4.1x

$45.4
$0.8 $58.0 60 days 4.1x

$45.1
$0.8 $59.4 65 d days 3.2x

Inventory Turnover

* Pro Forma Results: $ in millions * Please refer to SEC filing for the exact numbers
2011 AFOP. All rights reserved. 22

Most Trustworthy Companies Award

by F b b Forbes
3yr AGR Score

2011 AFOP. All rights reserved.

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Investment Highlights
1 2 3

Profitable and expanding business Strong financial position Multiple served markets; diversified customer base Broad product line manufacturer Innovative technology; extensive patent portfolio Cost effective Asian operations from inception

4 5 6

2011 AFOP. All rights reserved.

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2011 AFOP. All rights reserved.

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