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Technology Stocks : Lightpath Technologies: LPTH New WDM player -- Ignore unavailable to you. Want to Upgrade?

To: PartyTime who wrote (559)	2/7/2000 10:41:00 AM
From: jkc	Respond to of 1219

LightPath Technologies, Inc. Announces ExpansionOf Its Strategic Alliance with Hikari Glass Co.Ltd. of Japan ALBUQUERQUE, N.M., Feb. 7 /PRNewswire/ -- LightPath Technologies, Inc. (Nasdaq: LPTHA) announced today that it has reached agreement with Hikari Glass Co., Ltd. to significantly expand the two companies' existing long term strategic alliance. The initial objective of the LightPath - Hikari relationship was to ensure a stable supply of high quality raw materials, manufactured to LightPath's specifications, for the patented Gradium(R) glass process. Having successfully met this objective, a strategic alliance was signed in May of 1998 granting Hikari the right to sell and distribute Gradium glass products throughout Asia. The recently signed expanded alliance now provides for the manufacture by Hikari of products based on LightPath's proprietary technologies to be distributed in Asia. Under the agreement, Hikari will initially invest $5 million in their own operations to procure production equipment needed to implement the expanded alliance. Additionally, the agreement was modified to include products based on LightPath's proprietary, automated laser polishing and laser fusion processes. The distribution territory of Japan, Korea, Taiwan and Singapore was expanded to include the rapidly growing markets in China, where Hikari already has a strong marketing and sales presence. A recently completed study by RHK states the optical components market is growing at a 50% annual rate. Specifically, calendar year 1999 overall worldwide revenue levels of $1.4 billion are forecast to grow to almost $7 billion by 2003. Hikari, founded in 1962 and 40% owned by Nikon, currently manufactures optical products in volume and with high levels of automation in its two production facilities in Japan, as well as its facilities in Korea, Hong Kong and China. They have perfected the technique of continuous flow processing of optical glass. Bill Walters, Vice President, Engineering and R&D commented, "Hikari Glass Company has been a key partner of LightPath, and we are very pleased to expand our relationship at this time. The addition of high volume glass manufacturing capabilities with their attractive cost structure, along with the improved Asian market penetration afforded by this alliance are the key advantages to LightPath. As we come closer to an all optical network, optical materials and design solutions are critical and we are now leveraging the abilities of both companies to meet the needs of this rapidly evolving market in Asia." Don Lawson, President and CEO commented, "I am very pleased that our existing business relationship is expanding in this manner. Hikari has long been a player in the general optical markets and is now committed toward the telecommunications component sector at a time when optical networking companies are looking for key photonic solutions. Their financial commitment is evidence of their support of this long term strategy." LightPath manufactures optical products for the telecommunications component industry at its headquarters in Albuquerque. The Company has 18 U.S. patents, plus 8 more pending, associated with its optical technologies. In addition, various foreign countries had issued a total of 7 patents with 10 patents pending. LightPath common stock trades on the Nasdaq SmallCap Market under the stock symbol LPTHA. This news release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. This information may involve risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, factors detailed by LightPath Technologies, Inc. in its public filings with the Securities and Exchange Commission. SOURCE LightPath Technologies, Inc. CO: LightPath Technologies, Inc.; Hikari Glass Co., Ltd. ST: New Mexico, Japan IN: CPR TLS SU: 02/07/2000 09:57 EST prnewswire.com