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SDL Leads Team to Develop Advanced Manufacturing Methods For Communications Products

    SAN JOSE, Calif., Oct. 16 /PRNewswire/ -- SDL, Inc. (Nasdaq: SDLI) will
lead a vertically integrated team to develop advanced device fabrication
techniques, packaging processes and automated testing methods for photonic
manufacturing.  Other partners in the team are Adept Technology, Inc.
(San Jose, Calif.) a manufacturer of robotic systems, RSoft (Ossining, N.Y.) a
developer of optoelectronic CAD software, and Newport Corporation (Irvine,
Calif.) a leading supplier of photonics products and test and measurement
systems.
    The team was selected for a three-year contract award of $2.859 million
from the U.S. Department of Commerce as part of the National Institute of
Standards and Technology (NIST) Advanced Technology Program.  The team members
are providing matching R&D funds of $2.976 million.  The team will develop
technology for automation of the processes for high volume and cost-effective
manufacturing of optoelectronic components for telecommunications and
information markets, specifically, the development of new robotics, soldering,
laser, and other technologies for automated batch processing of integrated
optoelectronics and laser devices to enable substantial reductions in
packaging.  The emphasis of this focused effort will be DWDM (dense wavelength
division multiplexed) applications.
    SDL designs, manufactures and markets semiconductor optoelectronic
integrated circuits, semiconductor lasers, fiber optic related products and
optoelectronic based systems.  The Company's products are used in a diversity
of markets such as telecommunications, fiber optics, cable television, dense
wavelength division multiplexing, satellite communications, printing, medical
and materials processing markets.
    For investment professionals and shareholders who would like more
information on SDL, Inc., at no cost, please call 1-800-PRO-INFO (U.S.) or
908-544-2850 (Int'l), ticker symbol, SDLI.


SOURCE SDL, Inc.




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CONTACT:
Donald R. Scifres, Chairman and CEO of SDL,
Inc., 408-943-9411; or Lisa Horn Chainey, general information, or
Kristi Larson, investor contact, both of The Financial Relations
Board, 415-986-1591