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AXT, Inc. Announces 1550 nm Lasers for Metro and Other Network Applications

Source: AXT, Inc.

Edge-Emitting FP Devices Designed for Demanding Medium and Long-Haul Transceiver Applications Available

Fremont, CA. The VCSEL/LD Technologies Division of AXT, Inc. (Nasdaq: AXTI), a leading supplier of standard and customized laser products for telecom and data communications applications, today announced the availability of 1550 nm edge-emitting Fabry-Perot (FP) lasers.

The lasers exhibit excellent performance characteristics with high-temperature power output of 10 mW at 85 degrees C, and peak linear power of 20 mW. The devices are highly efficient with typical threshold currents of 10 mA and slope efficiencies of up to 0.5 mW/mA. The lasers can be driven to modulation speeds in excess of 2.5 Gbps, for high-speed transceiver applications, satisfying OC-48 requirements. They are available in sample quantities immediately, with volume release expected later in the third quarter.

Lasers using the 1,550 nm wavelength are ideally tailored for long distance fiber optic data transmission, as the "C-band" wavelength propagates through glass fiber with the least signal loss over distance, when compared with other wavelengths. It is therefore well suited for SONET transceiver applications for use in metropolitan area networks (MAN) and other medium to long-haul network applications.

"We are very pleased with the performance of our new 1,550 nm lasers," said Morris Young, president and CEO. "In a very short period of time, we have developed a world-class product that has numerous uses in rapidly growing markets such as metro area networks.

"The high temperature performance and efficiency of these lasers is especially worth noting. Our power output exceeds that of most other 1,550 lasers currently available and the efficiency is approximately 50 percent better than most. This will help our customers achieve more aggressive transceiver designs with fewer cooling concerns.

"AXT is focusing on developing advanced laser technologies for both VCSELs and edge-emitters and we look forward to offering our customers a stream of exciting products through our R&D efforts," he said.

RHK, Inc., a telecommunications research firm, recently forecasted the North American optical transport market, including both long-haul and metro networks, to grow from $19.6 billion in 2000, to $34.9 billion in 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 laser diode 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 of AXT, Inc., Tel: +1-510-683-5900 or Leslie Green of Stapleton Communications Inc., Tel: +1-650-470-0200, for AXT, Inc.

Don Tatzin of AXT, Inc.,
Tel: +1-510-683-5900
or
Leslie Green of Stapleton Communications Inc.,
Tel: +1-650-470-0200, for AXT, Inc.
Web site: http://www.axt.com
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