News | April 26, 1999

SDL ANNOUNCES AN 18-MONTH CONTRACT WITH CORNING TO SUPPLY PUMP MODULES - SDL will be primary supplier of lasers for pumping optical amplifiers



Donald R. Scifres, CEO and President

Michael L. Foster, Vice President

Tel: (408) 943-9411

Fax: (408) 943-1258

Financial Relations Board

Lisa Horn Chainey/Jose Mallabo (general info)

Kristi Larson (investor contact)

Tel: (415) 986-1591

San Jose, California, April 15, 1999-- <%=company%> (Nasdaq: SDLI) today announced that it has entered into an 18-month supply agreement with Corning Incorporated (NYSE: GLW) to be the primary supplier of 980 nanometer (nm) pump modules. The final value of the contract will be determined by the number of units and the product mix required by Corning throughout the life of the agreement.

SDL's 980 nm pumps are used to provide optical power to a variety of Corning optical fiber amplifiers. Corning is the world's largest manufacturer of erbium-doped fiber amplifiers (EDFAs) that are used in dense wavelength division multiplexing (DWDM) network applications.

"Over the last 12 months, the continuing build-out of DWDM fiber optic systems for long-haul terrestrial and undersea communications applications has more than doubled demand for our 980 nm pump module products," said Donald R. Scifres, SDL's chairman and chief executive officer. "We are very pleased that Corning has chosen to partner with SDL. These 980 nm products represent the fruition of our investments to improve our product design and to upgrade and expand our manufacturing line over the past two years. We believe our product now represents the best combination of power, reliability, wavelength stability and price in the industry today, as evidenced by this major contract with Corning."

"Market demand for Corning optical amplifiers continues to increase," said Gerry Fine, vice president and general manager of Corning Photonic Technologies. "To keep pace with this growth we decided to partner with SDL as our primary supplier of pump modules. SDL has established itself as one of the leading developers of 980 nm pump modules in the world and we look forward to our ongoing relationship with them."

Established in 1851, Corning Incorporated creates leading-edge technologies for the fastest-growing markets of the world's economy. Corning manufactures optical fiber, cable and photonic products for the telecommunications industry; and high-performance displays and components for television and other communications-related industries. The company also uses advanced materials to manufacture products for scientific, semiconductor and environmental markets. Corning's total revenues in 1998 were $3.5 billion. More information on the company is available at Corning's website,

SDL designs, manufactures and markets fiber optic-related products, lasers and opto electronic-based systems. The company's products are used in a diversity of markets such as telecommunications, cable television, dense wavelength division multiplexing, satellite communications, printing, medical and materials processing markets.

Statements in this press release which are not historical, including statements regarding SDL's or management's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include statements regarding the terms of the supply agreement and the performance and price advantages of the company's products. It is important to note that the Company's actual results could differ materially from those in any such forward-looking statements. Factors that could cause actual results to differ materially include risks related to manufacturing processes and capacity, yield fluctuations, delays or changes in Corning's order rates, lack of Corning's acceptance of products, and the risk factors listed from time to time in the Company's SEC reports including, but not limited to, the annual report on Form 10-K and 10-K/A for the year ended January 1, 1999.

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