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SDL and Alcatel Complete Reliability Testing of New High Performance 980nm Modules For Undersea Communications Networks

              The New Modules Will Enable Increasing Use of DWDM
         To Expand Telecommunications and Internet Traffic Bandwidth

    SAN JOSE, Calif., Aug. 3 /PRNewswire/ -- SDL, Inc. (Nasdaq: SDLI) and the
Alcatel optronics activity, both leaders in components supply for DWDM
undersea transmission systems,  recently completed a joint collaboration on
the performance and reliability of grating-stabilized 980 nm pump modules used
to pump amplifiers for undersea deployment.  The two companies initiated this
project in 1998 and recently presented the results at the Tenth Topical
Meeting on Optical Amplifiers and Their Applications in Nara, Japan.  SDL is
now in production and quickly ramping capacity to supply the 980 nm chips and
fiber Bragg gratings to Alcatel.  Alcatel is building the high power, high
reliability, wavelength stabilized undersea pump modules.
    Product features of the new high performance 980 nm module include output
powers of 100 mW and an operating temperature range from 0o to 43o C.  Under
these conditions, the predicted failure rate has been demonstrated at less
than one percent over 25 years of operation.  This is approximately five times
better than the reliability required for terrestrial deployment.  As a result
of these reliability tests, SDL and Alcatel are enabling submarine systems to
increase their wavelength channel counts to 32 and beyond.  To date, the
highest undersea system channel counts deployed have been 16 channels.
    "It is important to note both the significance of the work and the scale
of testing involved," said Donald R. Scifres, SDL's chairman and chief
executive officer.  "We believe that the SDL pump laser, coupled with the
Alcatel module, represents the highest power, highest reliability
submarine-qualified 980 nm pump available.  In addition, we believe that the
numbers of lasers tested and the scale of the testing procedures is simply
unmatched by any competitor.  Finally, the understanding gained in this
testing has allowed us to rapidly develop a revolutionary new pump chip, the
SDL 6540, in which we believe a 50 percent increase in output power will be
achieved with no degradation in reliability.  The SDL 6540 is expected to
enter into full qualification in the fourth quarter of 1999, with shipments
for terrestrial deployment planned in early 2000."
    Jean-Marie Vansteenkiste, Alcatel optronics activity's chairman and chief
executive officer added, "This project and partnership with SDL is further
evidence of Alcatel's commitment to being the industry leader in submarine
components.  We believe that our module, with the SDL chip, offers the best
combination of high power and submarine reliability in the industry.  We are
pleased that this pump module will now enable deployment of 32 channel
undersea DWDM systems."
    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
increased use of DWDM undersea transmission systems, technology and market
share leadership, the power, reliability, performance and production ramp of
the 980 nm chips and fiber Bragg gratings, expected power, reliability,
performance and qualification of the SDL 6540 and the anticipated shipments of
this product in early 2000.  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 the company's inability to achieve the expected power and reliability
levels in commercial production quantities, qualification or manufacturing
problems for the SDL 6540 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, and the quarterly report
on Forms 10-Q for the quarter ended March 31, 1999.
    SDL's products power the transmission of data, voice and Internet
information over fiber optic networks to meet the needs of telecommunications,
dense wavelength division multiplexing (DWDM), cable television and satellite
communications applications.  They enable customers to meet the bandwidth
needs of increasing Internet, data, video and voice traffic by expanding their
fiber optic communications networks much more quickly and efficiently than
would be possible using conventional electronic and optical technologies.
SDL's optical products also serve a variety of non-communications
applications, including materials processing and printing.  Additional
information about SDL, Inc. is available on the Internet at http://www.sdli.com .
    Alcatel optronics activity markets a full range of optoelectronic devices
and solutions for fiber optic communications.  Operating state-of-the-art
manufacturing plants in France, it is a leading supplier of high performance
laser and photo detector modules, optical amplifiers and other integrated
optoelectronic modules with particular emphasis on components for high bit-
rate and DWDM systems.  Additional information about Alcatel is available on
the Internet at http://www.alcatel.com .
    For more information on SDL, Inc. at no cost, please call 800-PRO-INFO
(U.S.) or 908-544-2850 (Int'l), ticker SDLI.


SOURCE SDL, Inc.




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Related links:
  • http://www.alcatel.com
    CONTACT:
    Donald R. Scifres, Chairman and CEO, or
    Michael L. Foster, VP Finance and CFO, of SDL Inc., 408-943-9411;
    or general info., Lisa Horn Chainey, investor, Kristi Larson, or
    media, Scott Marx, all of The Financial Relations Board,
    415-986-1591; or Philippe Bregi, VP - Marketing of Alcatel
    optronics activity, 33 1 64 49 49 00, or email,
    philippe.bregi@alcatel.fr