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SDL Begins Production in Its New Facility in Victoria, British Columbia

      Facility Doubles Manufacturing Space for High Growth DWDM Products

    SAN JOSE, Oct. 6 /PRNewswire/ -- SDL, Inc. (Nasdaq: SDLI) today announced
the official opening of its new manufacturing facility in Victoria, British
Columbia for its subsidiary, SDL Optics.  The new site more than doubles the
manufacturing space of SDL's prior facility to meet the expected continued
rapid growth in demand in the dense wavelength division multiplexing (DWDM)
marketplace.  SDL Optics manufactures the company's highly successful 980nm
high power, grating stabilized pump modules that are enabling the introduction
of higher channel count DWDM systems.
    The facility, located just outside Victoria, comprises 44,000 square feet
of manufacturing space that can readily be expanded.  SDL Optics substantially
completed the transition to the new facility during the third quarter of 1999.
"The move into the new complex was accomplished ahead of schedule with a
minimum of problems," said Donald R. Scifres, chairman and chief executive
officer of SDL, Inc.  "The expanded facilities demonstrate SDL's strong
commitment to meeting the anticipated growing customer demands for high power
fiber optic modules."

    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 company's anticipated growth in the DWDM marketplace, the company's
ability to enable the introduction of higher channel count DWDM systems, and
anticipated growth in customer demands for high power fiber optic modules.  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 the assumed continuing growth in the DWDM market, the company's
potential inability to introduce higher channel count DWDM systems, lack of
customer acceptance of new products, delays or cancellations of customer
orders, failure to meet customer demands, 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
quarterly reports on Forms 10-Q for the quarters ended March 31, 1999 and
June 30, 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 .
    For more information on SDL, Inc. at no cost, please call
1-800-PRO-INFO (U.S.) or 732-544-2850 (Int'l), ticker SDLI.


SOURCE SDL, Inc.




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Related links:
  • http://www.sdli.com
    CONTACT:
    Donald R. Scifres, Chairman and CEO, or
    Michael L. Foster, VP Finance and CFO, both for SDL, Inc.,
    408-943-9411, or general info, Lisa Horn Chainey, investor,
    Kristi Larson, media, Scott Marx, all of The Financial Relations
    Board, 415-986-1591, for SDL, Inc.