Excel Technology signs definitive agreement with Coherent Inc.

February 21--Excel Technology Inc. announced today that it has entered into a definitive merger agreement to be acquired by Coherent Inc. The acquisition will be an all cash transaction, and, under the terms of the merger agreement, Excel stockholders will receive $30.00 per share of common stock issued and outstanding, for an approximate transaction value of $376 million, before fees and expenses.

J. Donald Hill, chairman, stated, "Today's announcement is great news for our customers, investors, and employees. We are pleased with the value realization for our investors and are convinced that the merger with Coherent will provide even stronger opportunities for the growth of our employees and increased product offerings to our industrial, commercial, and scientific customers."

The transaction has been unanimously approved by the Boards of Directors of both companies and is subject to customary closing conditions, including regulatory approval and the approval of Excel Technology Inc. stockholders. The transaction is expected to close by the end of the second quarter of calendar 2006. In connection with the proposed merger, Excel intends to file a proxy statement and other relevant materials with the SEC. These documents will contain important information about the proposed merger, and may be obtained free of charge at the SEC's website, www.sec.gov.