Optium Corporation Initial Public Offering Priced At $17.50 Per Share

CHALFONT, Pa., Oct. 27, 2006 -- Optium Corporation (Nasdaq:OPTM) announced today its initial public offering of 5,200,000 shares of common stock all of which are being sold by Optium at $17.50 per share. Optium has granted the underwriters the right to purchase up to an additional 780,000 shares at the initial public offering price. The shares will be listed on the NASDAQ Global Market under the symbol "OPTM."

The offering was made through an underwriting syndicate led by Morgan Stanley & Co. Incorporated and Credit-Suisse Securities (USA) LLC, who acted as joint book-running managers. Cowen and Company, LLC and Jefferies & Company, Inc. acted as co-managers.

A copy of the prospectus relating to these securities can be obtained by writing or telephoning the prospectus department at Morgan Stanley & Co. Inc., 1585 Broadway, New York, NY 10036 (212-761-6775) or at Credit Suisse Securities (USA) LLC, One Madison Avenue, New York, NY 10010 (800-221-1037).

A registration statement relating to these securities has been filed with the Securities and Exchange Commission and become effective. This release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any State in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State.

About Optium Corporation

Optium Corporation is a supplier of high-performance optical subsystems that enable transmission, reception and switching functionality for high-bandwidth, intelligent optical networking applications for use in telecommunications and cable TV network systems.