SAN JOSE, Calif., Oct. 26 /PRNewswire/ -- SDL, Inc. (Nasdaq: SDLI) reached
an agreement with Matsushita Graphic Communication Systems, Inc. (Panasonic)
for the supply of fiber-coupled laser diodes, under a multi-million dollar
contract, for use in a new line of digital prepress equipment.  The "Dry
Plotter" uses an array of SDL fiber-coupled laser diodes to write the image
directly from computer files onto a printing plate or film.  The direct
writing of the image eliminates processing steps in the prepress workflow and
results in significant savings in cost and time to press for commercial
printers.
    SDL and Panasonic have worked together extensively to qualify the
SDL-2300-L2 Series fiber-coupled laser diodes for use in the Panasonic "Dry
Plotter."  Using multiple diodes for a single printing head places even more
emphasis on the reliability of the laser diodes.  SDL has worked to optimize
the performance of the 2300-L2 laser diode to meet the strict requirements of
Panasonic's customers while maintaining its high standard of reliability.
    According to Donald R. Scifres, Chairman and Chief Executive Officer, "We
are very pleased to be working with Panasonic, a leader in the printing and
graphic arts industry.  This contract is an important part of our plan to be a
leading supplier of laser diodes for the thermal printing market.  This
agreement is a direct result of and highlights our commitment to quality and
our philosophy of partnership with our customers."
    Panasonic is a leading worldwide supplier of imagesetters for the
newspaper and graphic arts printing industries.
    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, 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 Securities
Litigation Reform Act of 1995.  Such statements include statements regarding
its plan to be a leading supplier of laser diodes in the thermal printing
market.  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
customer acceptance of new products, new and continuing customer qualification
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 for
the year ended December 31, 1997 and quarterly reports on Forms 10-Q.

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