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News Article

SDL to Supply Multimode Pump Lasers to IPG Photonics

Source: SDL, Inc.

Two-Year Supply Agreement Totals $66.7 Million

San Jose, CA. SDL, Inc. (Nasdaq: SDLI - news) has entered into an agreement with IPG Photonics Corporation of Sturbridge, Massachusetts to provide high volumes of multimode pump lasers for an array of cladding-pumped fiber product offerings by IPG. Under the terms of the agreement, SDL will supply IPG Photonics with substantial quantities of multimode pump lasers through December 31, 2002. Revenues from this agreement are expected to total $66.7 million over the period.

SDL s multimode pump lasers borrow from the technology used in the company s leading 980 nm singlemode laser diodes designed for terrestrial and undersea telecommunications systems. Multimode pump lasers utilize a broad emitting aperture to allow operation at power levels as high as several watts, and are used as cooled or uncooled optical pump sources for active, cladding-pumped fibers. SDL s new 6380 multimode pump laser represents state-of-the-art technology, offering twice the power from the same aperture size as previous product designs, without sacrificing reliability. Extensive life testing of this device validates this claim. These and other SDL multimode pump lasers will be employed in IPG Photonics industrial fiber lasers, Raman fiber lasers, and various optical amplifier products used in fiber optic communication systems, terrestrial wireless optical networks and free space communications. These will also be used in IPG Photonics new generation of low-cost metro amplifiers for use in the emerging metro access networks.

``We chose SDL pump lasers due to their superior performance and reliability, and the company s engineering support and ability to deliver our requirements in time, commented Dr. Valentin Gapontsev, Chairman and CEO of IPG Photonics. ``We look forward to our association with SDL over the coming years.

Julian Osinski, SDL Product Manager, adds, ``The success of our multimode laser products demonstrates our ability to leverage our core high power laser technology in diverse ways, and is a solid complement to SDL s singlemode pump laser products. Our multimode product line broadens our customer base in the communications field to new entrants such as IPG. We expect IPG to experience significant growth as it focuses on new fiber optic and fiber laser markets, and believe that we are well positioned to meet their needs in both performance and delivery.

Statements in this press release which are not historical including statements regarding SDL s or management s intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include statements regarding the terms of and the revenue anticipated from the supply agreement with IPG Photonics, the company s leading position in 980 nm laser technology, the company s belief that its new 6380 multimode pump laser represents the state-of-the-art in this technology in respect to power and reliability, the superior power levels and performance of SDL s pump lasers, SDL s ability to leverage its core high power laser technology in diverse ways allowing the company to broaden its customer base in the communications field, SDL s expectations that IPG will experience significant growth in the fiber optic and fiber laser markets, and the company s ability to meet IPG Photonics increasing demand for pump lasers. It is important to note that the company s actual results could differ materially from those in any such-forward looking statements. Factors that could cause actual results to differ materially include risks related to the company s inability to manufacture quantities to successfully meet IPG Photonics order for pumps, the company s inability to meet the power and performance specification levels required by IPG Photonics, decreases or cancellations in IPG Photonics order levels, alternative technologies, competitive products and the risk factors listed from time to time in the company s SEC reports including, but not limited to, the annual report on Form 10-K for the year ended December 31, 1999, and Form 10-Q for the quarters ended March 31, June 30, and September 30, 2000.

About SDL

SDL s products power the transmission of data, voice and Internet information over fiber optic networks to meet the needs of telecommunications, DWDM, cable television and satellite communications applications. They enable customers to meet the bandwidth needs of increasing Internet, data, video and voice traffic by expanding their fiber optic communications networks much more quickly and efficiently than would be possible using conventional electronic and optical technologies. SDL s optical products also serve a variety of non-communications applications, including materials processing and printing. Additional information on SDL, Inc. is available on the Internet at www.sdli.com.

About IPG Photonics

IPG s fiber-based amplifiers, lasers, transmitters and associated products are specially designed and customized to meet the requirements of leading communications and technology companies throughout the world. Its main product groups include a wide range of erbium, ytterbium, thulium and praseodymium doped amplifiers and Raman pump lasers for telecom applications, high power fiber lasers for marking, pointing, micro-machining and other material processing applications, various fiber laser transmitters for free space applications, and fiber amplifiers and lasers for research, test instruments and biomedical applications.

IPG Photonics commenced operation in the United States in December 1998 and as a member of the IPG Group (formerly IRE-Polus Group). The IPG Group includes IPG Photonics, subsidiaries in Germany and Italy and an affiliated company in Russia.


Web site: http://www.sdli.com
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