II-VI Incorporated Third Quarter EPS Up 35% on Record Revenues

PITTSBURGH, PA. II-VI Incorporated (Nasdaq: IIVI) today reported earnings for its third fiscal quarter ended March 31, 2000. Net earnings for the quarter were $2,051,000 ($0.31 per share-diluted) on record revenues of $19,781,000. These results compare with net earnings of $1,498,000 ($0.23 per share-diluted) on revenues of $15,538,000 in the third quarter of last fiscal year. For the nine months ended March 31, 2000, net earnings increased 59% while revenues increased 19%; net earnings for the period were $5,460,000 ($0.83 per share-diluted) on revenues of $52,853,000. Net earnings for the same period last fiscal year were $3,429,000 ($0.53 per share-diluted) on revenues of $44,541,000.

Francis J. Kramer, president and chief operating officer said, "II-VI products remain in high demand and this quarter represents a third consecutive quarter of record bookings. Capacity expansion programs have enabled us to meet this increased customer demand. Included in this quarter s bookings is nearly $2,000,000 of research and development contracts aimed at expanding applications for our eV PRODUCTS division s Cadmium Zinc Telluride (CdZnTe) detectors, and improving our Silicon Carbide (SiC) crystal growth process."

Kramer continued, "Bookings in our core laser optics and component products business improved by approximately 45% for the quarter as compared to a year ago. This provides a solid foundation for our new telecommunication product line and continued research in SiC material growth. Additionally, the backlog in our eV PRODUCTS division is at a record level."

Bookings for the quarter increased 60% to a record $23,473,000 from $14,655,000 for the same period last year. Bookings for laser optics and component products increased approximately 45%, bookings for the eV PRODUCTS division increased approximately 300% and the Company recorded initial bookings of its telecommunication products of approximately $700,000. Included in the bookings for the quarter ended March 31, 2000 is approximately $450,000 for SiC crystal growth research and development. For the nine months ended March 31, 2000, bookings increased 37% to $60,329,000 from $43,959,000 last fiscal year. Bookings for laser optics and component products increased approximately 35% and bookings for the eV PRODUCTS division increased approximately 70%.

Revenues for the quarter increased 27% to $19,781,000 from $15,538,000 in the third quarter of last fiscal year. Revenues from laser optics and component products increased by approximately 30% while revenues from the eV PRODUCTS division increased by approximately 20%. For the nine months ended March 31, 2000, revenues increased 19% to $52,853,000 from $44,541,000 last fiscal year. Revenues from laser optics and component products increased approximately 20% while revenues from the eV PRODUCTS division increased approximately 5%.

Headquartered in Saxonburg, Pennsylvania II-VI Incorporated designs, manufactures and markets optical and electro-optical components, devices and materials for infrared, near-infrared, visible light, x-ray and gamma-ray instrumentation and has recently announced new products to serve the telecommunication industry. The Company s infrared products are used primarily in high-power CO2 (carbon dioxide) lasers. The Company s VLOC subsidiary manufactures near-infrared and visible light products for industrial, scientific and medical instruments and solid-state (such as YAG and YLF) lasers. The Company s eV PRODUCTS division manufactures and markets solid-state x-ray and gamma-ray detector products for the nuclear radiation detection industry.

This press release contains forward looking statements as defined by Section 21E of the Securities Exchange Act of 1934. Any information which is not historical in nature constitutes such forward looking statements. Actual results may differ from the results described in any forward looking statements due to, among other things, changes in market demand for laser optics and component products, products of the eV PRODUCTS division and telecommunications products, the Company s ability to maintain or increase market share, the Company s ability to effectively address market opportunities, and general market and economic conditions throughout the world.

Additional information on potential factors that could affect the Company s financial results are included in the Company s Form 10-K for the year ended June 30, 1999 as filed with the Securities and Exchange Commission.

CONTACT:

Jim Martinelli, Treasurer & Chief Financial Officer of II-VI Incorporated,
724-352-4455, or e-mail, jmartinelli@ii-vi.com. Jim Martinelli, Treasurer
& Chief Financial Officer of II-VI Incorporated,
724-352-4455, or e-mail, jmartinelli@ii-vi.com.
E-mail: jmartinelli@ii-vi.com