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Technology Stocks : SDLI

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To: Toby who wrote (41)3/20/1997 7:53:00 PM
From: Sam Citron   of 297
 
SDL Awarded Significant Supply Contract by Lucent
Technologies

SAN JOSE, Calif., March 20 /PRNewswire/ -- SDL, Inc. (Nasdaq: SDLI) has been awarded a
significant contract by Lucent Technologies Inc to supply 980 nm fiber-coupled pump modules
for use in optical fiber amplifiers. Optical amplifiers are used in telecommunications, CATV and
broadband fiber optic transmission systems to increase the optical signal power and reduce the
need for electronic repeaters. Optical amplifiers are an enabling technology for the deployment of
high bandwidth, dense wavelength division multiplexed (DWDM) fiber optic transmission
systems.

The pump modules to be manufactured by SDL Optics will be supplied to Lucent's Network
Systems Division and incorporated into optical transmission systems built at Lucent's North
Andover factory. SDL Optics will be a major supplier of pump modules for Lucent Network
Systems in 1997. The contract award was supported by extensive performance and reliability
qualification conducted by both parties during 1996. SDL Optics pump module qualification
adheres to a rigorous program aligned with Bellcore reliability recommendations. This is the
largest single order received by SDL for the commercial telecommunications market.

SDL Optics was one of the earliest suppliers of 980 nm pump modules for erbium doped fiber
amplifiers and currently supplies devices to many of the largest and fastest growing
telecommunications and CATV equipment manufacturers around the world.

Certain of the statements contained in this press release are forward looking statements including,
without limitation, the size, significance and time period of the Lucent contract. It is important to
note that the Company's actual results could differ materially from those in any such forward
looking statements. Among the factors that could cause actual results to differ materially are
Lucent cancellation or reduction in the size of the contract, and the risk factors listed from time to
time in the Company's SEC reports, including but not limited to the report on Form 10-K for the
year ended December 31, 1996.

SDL designs, manufactures and markets semiconductor optoelectronic integrated circuits,
semiconductor lasers, fiber optic related products and optoelectronic based systems. The
Company's products are used in a diversity of markets such as telecommunications, cable
television, satellite communications, printing, medical, data storage, consumer electronics, sensor,
defense, materials processing and instrument markets. SOURCE SDL Inc.
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