SAN JOSE, Calif., Feb. 10 /PRNewswire/ -- SDL, Inc. (Nasdaq: SDLI) today
announced the purchase of Polaroid's fiber laser business.  SDL is paying
$5.0 million for all physical assets, intellectual property, including the
assignment of 38 patents and the licensing of 22 patents in the fiber laser
area, and the ongoing operation of the fiber manufacturing facilities and
fiber laser subsystem business.  As part of the transaction, SDL and Polaroid
have entered into a multi-million dollar, multi-year exclusive supply
agreement for the supply of advanced fiber laser subsystems to the Polaroid
Graphic Imaging Division of Polaroid Corporation.  SDL expects the acquisition
to be accretive to earnings per share in 1999, after estimated one-time
charges of approximately $2.5 million in the quarter ended March 31, 1999.
    Polaroid has developed advanced fiber laser components including passive
and active fibers, fiber lasers and fiber couplers.  SDL and Polaroid have
developed double-clad fiber and fiber laser technology for the past seven
years with successful commercialization of the technology in the past two
years.  Currently, SDL uses this technology for the FL10 (9W cw) and FL20 (15
W cw) fiber laser products and has shown the utility of the advanced fiber
designs in both fiber lasers and fiber amplifiers.  The jointly developed FL20
received the Commercial Technology Achievement Award from Laser Focus World at
the Photonics West trade show in January.
    "Fiber laser based technologies and products are widely utilized
throughout the breadth of SDL's markets," said Donald R. Scifres, chairman and
chief executive officer of SDL.  "The Polaroid fiber laser business has been
both a supplier to and a customer of SDL over the past seven years.  We have
also been successful in jointly developing a number of products such as our
award winning fiber laser product line.  We are fortunate to have the
opportunity to acquire an activity with such advanced technology and strong
base of intellectual property which is so synergistic with our business."
    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 accretive effect on earnings per share in 1999, the size of the first
quarter 1999 charge associated with the acquisition, the wide use of SDL's
products in the fiber laser markets, and the synergies between SDL and the
acquired business.  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 uncertainties in market and customer requirements, final accounting
review of the expected first quarter charges, delay or failure to successfully
incorporate the acquired business, 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 for the year ended December 31, 1997, and quarterly
reports on Forms 10-Q for the first three quarters of 1998.
    SDL designs, manufactures and markets fiber optic related products, lasers
and optoelectronic 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.

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