American Xtal Technology Announces New Cyan and Green LED Products

AXT s Blue LED Product Now Shipping in Production Quantity

Fremont, CA. American Xtal Technology, Inc. (Nasdaq: AXTI), a leading manufacturer of compound semiconductor substrates and optoelectronic devices, today announced two new light emitting diode (LED) products, high brightness cyan and green, which compliment the company s current offering of red, amber, yellow and blue LEDs.

The new 505 nm aluminum indium gallium nitride (AlInGaN)-based high brightness cyan LED has a minimum power output of 1.2 miliwatts at 20 miliamps. The expected packaged lamp power output for the device is 2.4 miliwatts. High brightness cyan LEDs, which are blue/green in color, are primarily used in traffic signals. Industry analysts estimate that the LED traffic signal market will reach approximately $100 million for the year 2000, and will grow at a rate of approximately 50% per year over the next few years.

The new 525 nm aluminum indium gallium nitride (AlInGaN) -- based high brightness green LED has a minimum power output of 0.75 miliwatt at 20 miliamps. The expected packaged lamp power output for the device is 1.5 miliwatts. Green is a primary color. By mixing red, green and blue lights, many colors can be produced, including white light. With the high efficiency of this new product, many outdoor applications also become available. High brightness green LEDs are currently used in very large outdoor full color displays, indoor displays, special purpose illumination, cell phone back lighting, traffic signals, as well as many consumer applications. These new products are currently available in quantities of 500,000 pieces per order.

"We are very pleased to introduce such high quality products to the market place," said Morris Young, president and chief executive officer. "Currently, very few companies can offer high brightness cyan and green LEDs because of the significantly greater technical challenges involved in producing these devices over other types of LEDs. This introduction comes at a time when the demand for high brightness blue, green and cyan LEDs exceeds the supply. Because of this demand, we are rapidly expanding our capacity in order to provide a shorter delivery window for the product. Our goal is to become a vertically integrated, full-color spectrum, high volume, high quality, high brightness LED supplier. In doing so, our customers will benefit from increased convenience and a lower cost manufacturing structure," he said.

The company also announced that after the successful customer trial of its previously introduced high brightness blue LEDs, it is shipping its blue LED product in production quantity. "We have received excellent feedback from customers who have used our high brightness blue LED chips in various applications and are now receiving larger quantity orders. We are very encouraged by the product s initial positive reception from the marketplace," he added.

About American Xtal Technology

American Xtal Technology designs, develops, manufactures and markets high-performance substrates for the communications industry. Its Lyte Optronics subsidiary is a leading producer of diodes for laser pointers and light-emitting diodes (LEDs) for the display and lighting industries. The company s proprietary Vertical Gradient Freeze (VGF) crystal growth technology produces low-defect, semi-insulating and semi-conducting gallium arsenide, germanium and indium phosphide wafers. The company has also introduced gallium nitride substrates for manufacturing blue LEDs. For more information, see American Xtal Technology s website at www.axt.com. The company can also be reached at 4281 Technology Drive, Fremont, California 94538 or call 510-683-5900. American Xtal Technology is traded on the Nasdaq National Market under the symbol AXTI.

Safe Harbor Statement

This press release contains forward-looking statements regarding the availability, performance and market acceptance of new LED products, the company s ability to bring these products to market, the current market conditions in the optoelectronic device industry and the future financial performance of the company. Forward-looking statements address matters that are subject to a number of risks and uncertainties. In addition to the general risks associated with the development of complex technology and the risks associated with the company s acquisition and the integration of Lyte Optronics, Inc., future results of the company will depend on a variety of factors, including, among others, the timing of significant orders, unexpected cancellations or returns by customers, the ability of the company to bring new products to market, the timing of new product releases and product announcements by the company s competitors and other competitive factors. Reference is made to the company s filings with the Securities and Exchange Commission, including the Company s Form 10-K for the year ended December 31, 1999, for further discussion of risks and uncertainties regarding the company s business.

Contact:
Guy Atwood of American Xtal Technology, Inc.
Tel: 510-683-5900
or
Leslie Green of Stapleton Communications Inc.
Tel: 650-470-4222