Excel Technology Acquires Continuum

Oct. 16, 2002
East Setauket NY, October 16, 2002 -- Excel Technology, Inc. announced today its wholly-owned subsidiary, Excel Continuum Corporation, has acquired the assets and business of the Scientific Division of Hoya Photonics Inc., d/b/a Continuum, a California Corporation, and its foreign subsidiaries located in Germany, France and Japan.

East Setauket NY, October 16, 2002 -- Excel Technology, Inc. announced today its wholly-owned subsidiary, Excel Continuum Corporation, has acquired the assets and business of the Scientific Division of Hoya Photonics Inc., d/b/a Continuum, a California Corporation, and its foreign subsidiaries located in Germany, France and Japan.

The Scientific Division consists of the Continuum pulsed laser activities that serve commercial and scientific markets. The names "Continuum" and "Continuum Electro-Optics" were also acquired as well as offices in California, France and Japan. The all cash transaction totaled about $13 million including related expenses. The acquired division recorded revenues of over $20 million over the last twelve months and is headquartered in Santa Clara, California. Larry Cramer, Vice President and General Manager of the Division, will become President.

J. Donald Hill, Chairman, commented, "Continuum is one of the world's leading pulsed laser companies. Pulsed laser technology is a significant addition to Excel as it broadens our ability to provide cost effective solutions for our markets. We are pleased with the added strength Continuum brings us."

Antoine Dominic, Chief Executive Officer, added, "Continuum is an important part of our strategic plan. Continuum's high energy pulsed laser technology, coupled with its tunability, offers broad based solutions for industry and science. Prior to this acquisition, Excel had not participated in the pulsed laser market; therefore Continuum provides us the foundation upon which to build. We expect Continuum to strengthen its leadership position, expand its technology and broaden its applications for its pulsed lasers. We believe both our Quantronix and Control Systemation divisions will contribute to, and benefit from, Continuum's technology."

Larry Cramer, President of Excel Continuum Corp. stated, "We are very pleased to be a new member of the Excel Technology group of companies. Continuum has long been a world leader in the development and use of high energy pulsed laser technology for Scientific and Commercial applications. This acquisition will serve to strengthen, and greatly expand, our overall position in the marketplace."

Dominic concluded, "The acquisition was paid for entirely out of Excel's existing cash and we remain debt free. The transaction is effective as of October 1, 2002; and we believe Continuum will be accretive. We welcome their customers and employees to the Excel family."

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