Pittsburgh-Based II-VI Inc. Acquires Chinese Fiber Optic Equipment Company

Pittsburgh-based II-VI Inc., maker of precision infrared lenses and specialty optics, said it has agreed to purchase Chinese fiber optic equipment maker Photop Technologies, Inc. for $45.6 million and approximately 1.2 million shares of II-VI common stock. The deal is expected to close in January 2010.

Photop, headquartered in Fuzhou, China with over 3,000 employees, is a vertically-integrated manufacturer of engineered materials, optical components, microchip lasers for visible display applications, and optical modules for use in fiber optic communication networks and other diverse consumer and commercial applications.

"We are excited to partner with Photop to combine efforts and enhance our collective expertise in crystal materials and optics," said Carl J. Johnson, Chairman of II-VI Incorporated.

"Led by its strong, experienced and skilled management team, Photop has developed very impressive technology and a robust component product portfolio in the growing photonics markets and offers immediate access to the growing Chinese markets for engineered materials and components, including the optical communications and micro-optics display markets.

"The combination of II-VI and Photop will benefit our customers, employees and shareholders and will fuel our long-term growth objectives through our stronger presence in China and the rest of the world. Both companies have a passion for technological innovation and close customer engagement, and we look forward to integrating our similar entrepreneurial cultures and achieving future goals together."

Hongrui Wang, Chairman of Photop Technologies, Inc., said: "We are delighted to team with II-VI Inc. We believe that by joining forces with II-VI we will have access to significantly more resources, especially through its VLOC subsidiary and Near-Infrared Optics business, further securing our capabilities on research and product development, sales marketing and manufacturing operations. We are looking forward to a brighter future and greater growth prospects for our company and our employees.”

Upon the closing of the transaction, Photop will be combined with II-VI’s VLOC Inc. subsidiary and Near-Infrared Optics business for financial reporting purposes. This combined group, along with the Compound Semiconductor Group, will be directed by Dr. Vincent D. (Chuck) Mattera, Jr., Vice President of II-VI, who will be promoted to Executive Vice President of II-VI upon the closing of the transaction.

II-VI, the worldwide leader in crystal growth technology, is a vertically-integrated manufacturing company serving the industrial manufacturing, military and aerospace, high-power electronics and telecommunications, and thermoelectronics applications.

Headquartered in Saxonburg, Pennsylvania, with manufacturing, sales, and distribution facilities worldwide, the Company produces numerous crystalline compounds including zinc selenide for infrared laser optics, silicon carbide for high-power electronic and microwave applications, and bismuth telluride for thermoelectric coolers.

Established in 2003 through a merger of four companies, each a leader in its respective product field of Optics, Lasers, Fiber Optics and Photonic Crystal Materials, Photop Technologies, Inc. is a leading photonics design and integrated manufacturing company of Fiber Optics, Precision Optics, Projection and Display Optics, Solid-State Lasers, Crystal Materials and other Photonics Products.

Headquartered in Fuzhou, China, with over 3,000 employees including 350 dedicated engineers in Fuzhou, Shanghai and Guangzhou, Photop is dedicated to continually-growing its technology platform, highly-efficient manufacturing infrastructure, volume production capability and capacity, advanced design knowledge, and leading-edge research and development.