Coherent Set to Double Production in Support of DWDM and Semiconductor Customers - Company Operations - Brief Article

Cambridge Telcom Report, April 10, 2000

Coherent, Inc. (Nasdaq: COHR), announced Tuesday that its Laser Group is doubling production capacity for its Fred and SabreFred product lines in response to rising demand from both DWDM and semiconductor customers.

The Fred and Sabre Fred lasers and the L1-FBG excimer laser manufactured by Lambda Physik, a subsidiary of Coherent, are critical tools in the manufacture of high-performance Fiber Bragg Gratings (FBG) for the DWDM marketplace. FBG's are used to perform a number of tasks in optical networks including signal conditioning and routing. Ultraviolet (UV) lasers are used to imprint the gratings in the fiber. The Fred and SabreFred are used to produce a significant portion of high-performance FBG's. Given the expansion in the DWDM market size, Coherent estimates the installed base of Fred and SabreFred lasers used in this application will double by the end of 2000.

John Ambroseo, Coherent Laser Group's President commented, "The push towards smaller feature sizes in the semiconductor market is also creating additional opportunities for the Fred and SabreFred lasers since their output characteristics are well-suited for several mission critical test and measurement applications." Many of the optical components used in steppers, such as optics and reticles, must be tested near the exposure wavelength to ensure performance. Sales of Fred and SabreFred into this segment are expected to grow by 50-100% per year for the next 2-3 years.

Founded in 1966, Coherent, Inc. is a Standard & Poor's SmallCap 600 company and a world leader in the design and manufacture of lasers and systems for commercial, scientific, medical, and telecom markets. Please direct any questions to Peter Schuman, Director of Investor Relations at 408-764-4174. For more information about Coherent, visit the company's Web site at http://www.cohr.com for product and financial updates.