Exotic Electro-Optics Breaks Ground on 24,000 Square Foot Sapphire Facility

Media Contact

Evan Lundstedt

Director, Programs and Business Development



MURRIETA, CA., September, 3, 2009 – Exotic Electro-Optics, Inc. (EEO), a subsidiary of II-VI Incorporated (NASDAQ Global Select: IIVI), broke ground today on a new facility next to its primary manufacturing operations in Murrieta, California that will support large sapphire window fabrication used on programs for Intelligence, Surveillance and Reconnaissance (ISR) applications. This facility is targeting to be fully operational in the next 12 months.

The 24,000 square foot facility was designed with Lean manufacturing principles and will increase EEO’s capacity for large sapphire window fabrication by 400%.

Local and Federal Government dignitaries participated in the groundbreaking ceremony, including: City of Murrieta Council Member Randon Lane, City of Temecula Mayor Maryann Edwards and Rep. Mary Bono Mack, U.S. House of Representatives, 45th District.

"This expansion signifies Exotic Electro-Optics long-term commitment to the ISR market and the community" said EEO General Manager Mark Maiberger. "Our sapphire business alone has created 15 additional jobs in the community over the last 5 years and will create 50-75 more highly skilled engineering and technical positions in the coming years."

“This is an exciting expansion of a local business that will bring new jobs and new opportunities to our community,” said Bono Mack. “Exotic Electro-Optics is an innovative and dynamic company that is using new technologies to transform our defense capabilities and enhance our national security, and in the process, it provides hundreds of jobs for our community and contributes significantly to our local economy. I am honored to celebrate this ground-breaking with so many members of our community, and I look forward to the continued growth and advancement of this outstanding company that is offering so many benefits to both our region and our nation.”

This facility expansion is adjacent to EEO’s existing 62,000 square foot facility which provides optics and optical assemblies for visible through infrared applications in the ISR market for terrestrial, airborne, space and un-manned systems.

About Exotic Electro-Optics

Founded in 1961, Exotic Electro-Optics (EEO) is an established supplier of visible through infrared optical components and subassemblies to the military and aerospace industries for electro-optical imaging systems and intelligence, surveillance and reconnaissance (ISR) applications. Product offerings include infrared and multi-spectral windows, domes, lenses and opto-mechanical assemblies. Located in Murrieta, California, EEO maintains approximately 90,000 square feet of vertically integrated crystal growth, optical manufacturing, coating, assembly, test, and clean room facilities to support these applications. http://www.exotic-eo.com.

About II-VI Incorporated

II-VI Incorporated, the worldwide leader in crystal growth technology, is a vertically-integrated manufacturing company that creates and markets products for a diversified customer base including 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.

In the Company's infrared optics business, II-VI Infrared manufactures optical and opto-electronic components for industrial laser and thermal imaging systems, and HIGHYAG Lasertechnologie GmbH (HIGHYAG) manufactures fiber-delivered beam delivery systems and processing tools for industrial lasers. In the Company's near-infrared optics business, VLOC manufactures near-infrared and visible light products for industrial, scientific, military and medical instruments and laser gain materials and products for solid-state YAG and YLF lasers. Photop Technologies, Inc. (Photop) manufactures crystal materials, optics, microchip lasers and opto-electronic modules for use in optical communication networks and other diverse consumer and commercial applications. In the Company’s military & materials business, Exotic Electro-Optics (EEO) manufactures infrared products for military applications, and Pacific Rare Specialty Metals & Chemicals (PRM) produces and refines selenium and tellurium materials. In the Company's Compound Semiconductor Group, the Wide Bandgap Materials (WBG) group manufactures and markets single crystal silicon carbide substrates for use in the solid-state lighting, wireless infrastructure, RF electronics and power switching industries; Marlow Industries, Inc. (Marlow) designs and manufactures thermoelectric cooling and power generation solutions for use in defense, space, photonics, telecommunications, medical, consumer and industrial markets; and the Worldwide Materials Group (WMG) provides expertise in materials development, process development and manufacturing scale up.

This press release contains forward-looking statements based on certain assumptions and contingencies that involve risks and uncertainties. The forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and relate to the Company’s performance on a going-forward basis. The forward-looking statements in this press release involve risks and uncertainties, which could cause actual results, performance or trends to differ materially from those expressed in the forward-looking statements herein or in previous disclosures. The Company believes that all forward-looking statements made by it have a reasonable basis, but there can be no assurance that management’s expectations, beliefs or projections as expressed in the forward-looking statements will actually occur or prove to be correct. In addition to general industry and economic conditions, including any worsening of the global economic downturn, factors that could cause actual results to differ materially from those discussed in the forward-looking statements in this press release include, but are not limited to: (i) the failure of any one or more of the assumptions stated above to prove to be correct; (ii) the risks relating to forward-looking statements and other “Risk Factors” discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2009; (iii) the purchasing patterns from customers and end-users; (iv) the timely release of new products, and acceptance of such new products by the market; (v) the introduction of new products by competitors and other competitive responses; and/or (vi) the Company’s ability to devise and execute strategies to respond to market conditions.

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