AXT, Inc. Announces 850 nm VCSEL Arrays for High Data-Rate Parallel Optics Applications

Source: AXT, Inc.

Production Quantities Available for 1x12 and 1x4 Oxide-Confined VCSEL Arrays, Capable of Modulation Speeds to 30 Gbps

Fremont, CA. The VCSEL Technologies Division of AXT, Inc. (Nasdaq: AXTI), a leading supplier of standard and customized VCSEL products for telecom and data communications applications, today announced volume production of oxide confined VCSEL (vertical-cavity surface-emitting laser) arrays in 1x12 and 1x4 configurations. These arrays are used in such applications as short-reach optical interconnections and optical transceiver applications, and can include InfiniBand (SM) designs.

Each device within the 850 nm wavelength array can be modulated at data rates in excess of 2.5 Gbps, permitting optical designs with very high data rate products through the use of parallel data channels. The 1x4 array allows for modulation speeds reaching 10 Gbps data rates (OC-192) and the 1x12 array supports 30 Gbps rates. Typical power output for each VCSEL is 1.0mW with output slope efficiencies of 0.45-0.50 mW/mA. Both array forms are available immediately in production volumes, and can be tailored to meet a variety of customer specific product designs.

As data rates continue to increase, fiber optic connections become an appealing solution for an increasing number of data communication products. For many future designs, fiber-optic connections will replace copper connections in such devices as computer servers. Designs may use parallel, multi-fiber connections to reach these higher data rates for uses in such short-reach interconnections as backplane, bus, and other subsystem connections.

"Today we are announcing yet another exciting VCSEL product for our customers," said Morris Young, president and CEO. "VCSEL arrays are a key ingredient for high-speed parallel optics designs. We are addressing a rapidly expanding market with the introduction of these products, as more manufacturers of high-speed interconnection solutions make use of VCSEL arrays in their designs.

"We are very proud of the rapid advancements we have made in the VCSEL arena over the past few months, and our arrays will greatly contribute to our growth within this newly developing market. Our VCSEL development team is continuing to focus on advancing our product offerings as we continually push towards higher modulation speeds through our research and development efforts," he said.

ElectroniCast Corp forecasts the VCSEL transceiver market to reach over $3.4 billion by 2004.

About AXT, Inc. AXT designs, develops, manufactures and markets high-performance compound semiconductor substrates for the fiber optics and communications industries. The company s proprietary Vertical Gradient Freeze (VGF) crystal growth technology produces low-defect, semi-insulating and semi-conducting gallium arsenide, indium phosphide and germanium wafers. AXT is also a leading producer of light-emitting diodes (LEDs), such as blue, cyan and green LEDs, for the display and lighting industries and vertical-cavity surface-emitting lasers (VCSELs) for the fiber optics industry. For more information, see AXT s website at www.axt.com. The company can also be reached at 4281 Technology Drive, Fremont, California 94538 or by calling 510-683-5900. AXT 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 VCSEL products, the company s ability to bring these products to market and the current market conditions in the opto-electronic device industry. Forward-looking statements address matters that are subject to a number of risks and uncertainties, including but not limited to: unpredictable fluctuations in our operating results due, among other factors, to the timing, volume, and pricing of orders from customers; an inability to expand our manufacturing capacity to meet demand for our products; failure to achieve anticipated sales of our new VCSEL products; potential slowdowns in the wireless handset and fiber optics markets which may cause our customers to reduce or delay orders of our products; if we do not comply with environmental and other regulations we may incur large fines and delays in manufacturing our products; and if we experience frequent electrical power outages our production could be reduced and we may incur costs related to interrupted productions runs. Reference is made to AXT s filings with the Securities and Exchange Commission, including AXT s Form 10-K for the year ended December 31, 2000 and its Form 10-Qs, and to AXT s Form S-3, for further discussion of risks and uncertainties regarding AXT s business.

Contact: Don Tatzin, Chief Financial Officer of AXT, Inc. Tel: 510-683-5900 or Leslie Green of Stapleton Communications Tel: 650-470-0200 for AXT, Inc.