Parametric fluorescence in low-loss oxidized aluminum gallium arsenide heterostructure waveguides is quantitatively analyzed. A parametric fluorescence efficiency as high as 6x10(-7) W/W has been measured in a 3.2-mm-long waveguide. This corresponds to a normalized conversion efficiency, scaled with the waveguide length, of about 1000% cm(-2) W-1, eight times higher than with LiNbO3 waveguides. This opens the perspective of a microoptical parametric oscillation threshold below 100 mW. (C) 2001 American Institute of Physics.