By PR Newswire

Optical Cable Corporation (“OCC”) today announced the Company has closed a new two-year, $6 million revolving credit facility.

Under the terms of the new revolving credit facility, SunTrust Bank is providing OCC with a $6 million revolving line of credit through May 31, 2012. OCC closed on the new credit facility on April 30, 2010, and intends to use the credit facility to fund working capital needs.

The new revolving credit facility with SunTrust Bank replaces OCC's existing $3 million working capital line of credit with Valley Bank, and OCC and Valley Bank have entered into a loan modification agreement to facilitate OCC's new banking relationship with SunTrust. Valley Bank will continue to be OCC's lender under two existing real estate loans obtained by OCC in connection with its acquisition of Superior Modular Products, Incorporated (doing business as SMP Data Communications) on May 30, 2008.

Management's Comments

Neil Wilkin, President and Chief Executive Officer of OCC, said, “We are pleased to have reached these agreements with SunTrust Bank and Valley Bank and to once again have access to a $6 million credit facility. Though we never utilized the full $3 million available under our previous facility, we believe that the new financing agreement provides OCC with appropriate financial flexibility to fund our working capital needs as we continue to execute on our strategic plan.”

Tracy Smith, Senior Vice President and Chief Financial Officer of OCC, said, “We appreciate the interest of the banks that sought to provide financing to OCC, and we carefully considered the proposals we received. Ultimately, we concluded that the new SunTrust revolving loan, in combination with our existing term loans with Valley Bank, is the option that best meets our current financing needs.”

Mr. Wilkin added, “We believe that the strong interest among financial institutions is a validation of our efforts and demonstrates that OCC is a strong company with outstanding prospects for growth. We thank SunTrust for its confidence in OCC and look forward to continuing our business relationship with Valley Bank.”

Company Information

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 and broadcast applications. OCC products include fiber optic and copper cabling, fiber optic and copper connectors, specialty fiber optic and copper connectors, fiber optic and copper patch cords, pre-terminated fiber optic and copper cable assemblies, racks, cabinets, datacom enclosures, patch panels, face plates, multi-media boxes and other 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. OCC also is 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, manufacturing and warehouse facilities located in each of Roanoke, Virginia, near Asheville, North Carolina and near Dallas, Texas. OCC primarily manufactures its high quality fiber optic cables at its Roanoke facility which is ISO 9001:2008 registered and MIL-STD-790F certified, its high quality enterprise connectivity products at its Asheville facility which is ISO 9001:2008 registered, and its high quality military and harsh environment connectivity products and systems at its Dallas facility which is MIL-STD-790F certified.

Optical Cable Corporation, OCC, Superior Modular Products, SMP Data Communications, Applied Optical Systems, and associated logos are trademarks of Optical Cable Corporation.

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