nLIGHT Expands Capabilities Through Acquisition

Vancouver, WA  August 21, 2006

nLIGHT, a leading manufacturer of high-power semiconductor lasers, announced today that it has acquired the assets of Flextronics Photonics. Terms of the transaction were not disclosed.

“This acquisition reinforces our position as a leading supplier of high-power semiconductor laser solutions,” commented Scott Keeney, nLIGHT President and CEO. “It positions us well to provide integrated solutions that will enable new applications in a broad range of industries.”

The acquisition will add an array of new fiber-coupled and hybrid microelectronic products that will complement nLIGHT’s current products. The acquisition of new core competencies will be combined with nLIGHT’s semiconductor laser technology to expand nLIGHT’s product portfolio.

“The integration of new high-reliability products with our existing high-power and high-brightness diodes will enable new capabilities in a variety of applications and market segments,” noted Jake Bell, nLIGHT VP Defense Group. “In particular, the combination of these technologies in our ITAR compliant manufacturing facilities will serve the DoD community well for applications including illumination, laser communications, laser-initiated ordinance, and laser-based measurement systems.”

The acquired packaging design and high-volume manufacturing builds on nLIGHT’s current capabilities. Added Keeney, “This acquisition reinforces our strategy to offer integration capabilities for new high-volume applications.”