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SDL Receives $1.275 Million DARPA Contract

    SAN JOSE, Calif., Nov. 18 /PRNewswire/ -- SDL, Inc. (Nasdaq: SDLI) has
been awarded a three-year $1.275 million contract by the Defense Advanced
Research Projects Agency (DARPA) under the Optical Micro Networks Program for
the development of 2.5 gigabit transceivers for use in the harsh temperature
environment of avionics platforms.
    These transceivers, unlike existing commercial counterparts, would have a
small footprint, minimal mass and would be able to work 'uncooled' over the
full military temperature range from -55.C to 125.C and high humidity with
very high reliability.  The new technologies would reduce end-user costs by
having a simple uncooled package.  Additionally, the small size of the
transceiver is ideally suited to avionics requirements.
    To date, SDL has developed semiconductor laser diodes capable of
error-free high-speed data transmission at temperatures up to 225.C.  These
lasers have the same reliability pedigree as lasers currently being used in
gigabit data link components being manufactured at SDL for use in high speed
network applications within satellites and are suitable for a wide variety of
data links in avionics applications.  This work is being carried out in
collaboration with Harris Corporation and Boeing Corporation and is part of
the Parallel Optical Network Interconnect (PONI) Consortium headed by Hewlett
Packard.
    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.
    Statements in this press release which are not historical, including
statements regarding SDL's or management's intentions, hopes, beliefs,
expectations, projections, representations, 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 operating specifications and reliability of the Company's products and
their ability to reduce end-user costs.  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 the actual performance of
products in the field, qualifications and risks related to customer acceptance
of new products, delays or cancellation of orders, 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.


SOURCE SDL, Inc.




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CONTACT:
Donald R. Scifres, Chairman and CEO, or
Michael L. Foster, Vice President, Finance and CFO, 408-943-9411,
both of SDL, Inc.; or Lisa Horn Chainey or Jose Mallabo, general
info, or Kristi Larson, investors, 415-986-1591, all of The
Financial Relations Board