Condensed Consolidated Income Statements
                                                     (unaudited)

                                               Three Months Ended             Six Months Ended
                                                   December 31                  December 31
                                               2000           1999           2000           1999

                        Revenues             $7,760,606      $277,795    $10,825,545       $546,900
                        Cost of sales         4,711,487       105,009      6,436,261        189,830
                        Selling,
                         general and
                         administrative       4,275,338       979,716      7,683,828      1,647,065
                        Research and
                         development          1,768,900       189,169      3,131,243        290,265
                        Stock-based
                         compensation         2,782,773            --      5,482,773             --
                        Acquired in
                         process
                         research and
                         development                 --            --      9,100,000             --
                        Amortization of
                         goodwill and
                         intangibles          3,676,212         5,531      6,214,342         10,781
                        Operating loss       (9,454,104)   (1,001,630)   (27,222,902)    (1,591,041)
                        Other income
                         (expense)              609,143        45,051      1,439,208       (381,916)
                        Net loss            $(8,844,961)    $(956,579) $(25,783,694)   $(1,972,957)

                        Net loss
                         applicable to
                         common
                         shareholders       $(8,863,512) $(2,139,621) $(25,829,158)   $(3,164,157)
                        Basic and diluted
                         net loss per
                         share                    $(.46)        $(.32)        $(1.38)         $(.53)

                        Number of shares
                         used in
                         per share
                         calculation         19,242,857     6,786,966     18,785,241      6,004,947

                                             LightPath Technologies, Inc.
                                        Condensed Consolidated Balance Sheets
                                                     (unaudited)

                                                                December 31           June 30
                                                                    2000                2000

                        Cash and cash equivalents                $38,247,078         $58,728,130
                        Trade account receivable, net              5,238,150             841,533
                        Inventories                                4,479,812           1,690,058
                        Other current assets                         482,420             243,184
                           Total current assets                   48,447,460          61,502,905
                        Property and equipment, net               10,757,909           6,482,039
                        Goodwill and intangibles, net             46,349,597          31,727,811
                        Investment                                 8,234,885           1,000,000
                              Total assets                      $113,789,851        $100,712,755

                        Accounts payable                          $1,108,532          $1,573,531
                        Other current liabilities                  1,897,790             800,505
                           Total current liabilities               3,006,322           2,374,036
                        Long-term debt                               572,239                  --
                        Deferred income taxes
                         and other liabilities                     3,316,304              40,221
                        Stockholders' equity                     106,894,986          98,298,498
                              Total liabilities and
                               stockholders' equity             $113,789,851        $100,712,755

                                             LightPath Technologies, Inc.
                                    Condensed Consolidated Statements of Cash Flow
                                                     (unaudited)

                                                                December 31         December 31
                             The six months ended                    2000                1999
                        Cash and cash equivalents
                         at end of period                        $38,247,078          $5,684,280
                        Net loss adjusted for
                         noncash charges                          (3,857,260)         (1,301,273)
                        Net cash used for working capital         (5,714,684)             36,840
                        Net cash used for operations             $(9,571,944)        $(1,264,433)
                        Net cash used in investing activities    (11,254,898)         (2,036,540)
                        Net cash provided by financing
                         activities                                 $345,790          $8,571,865

                   SOURCE LightPath Technologies, Inc.

                   CONTACT:           Donald E. Lawson, President & CEO, or Donna Bogue, CFO, of
                                      LightPath Technologies, Inc., 505-342-1100

                   URL:               light.net
                   prnewswire.com