Unaxis Optics Makes Strategic Investment in Novalux; Substantial Stake Acquired and Joint Development Agreement Signed for New Laser Technology in Projection Displays

Unaxis Optics, a division of Swiss technology company UnaxisHolding AG, has acquired a substantial share of the California-basedcompany Novalux Inc. At the same time, an agreement has been signedfor the joint further development of applications for the novel solidstate laser technology of Novalux under the NECSEL brand (NovaluxExtended Cavity Surface Emitting Laser). The agreement covers jointdevelopment of the basic laser module for mass production and itscommercialization by Unaxis Optics. This alliance will give yetanother powerful boost to the development of cutting-edge projectiondisplay technology. Unaxis Optics is already established as a leaderin color management systems for all major micro display technologies.

The advantages provided by laser based systems powered by NECSELlasers include images with truer colors, greater brilliancy and higherreliability. In addition, the new systems eliminate waiting times whenprojectors are started up. The new laser sources from Novalux alsohelp reduce the number of required components and slash the productioncosts of the light source and other optical components. This allowsvolume production of top-performance optical devices at competitiveprices.

Thomas P. Limberger, CEO of Unaxis, calls the laser technologyfrom Novalux an ideal addition to the division's own technologies andproducts: "It is an innovation that will reshuffle the market forfront and rear projection displays and represent the future directionof projections systems. It also opens up new markets such aspico-projection and 3D applications. The partnership with Novaluxmakes perfect sense for Unaxis since the technology is highlycomplimentary to our present product portfolio and can be appliedacross the entire range of micro display and scanning devices. UnaxisOptics' customers will now have direct access to Novalux laser modulesand light engines designed and built by Unaxis. The partnership withNovalux puts Unaxis firmly on the leading edge of this exciting newtechnology."

Novalux Chairman and CEO Jean-Michel Pelaprat commented asfollows: "We are delighted to have Unaxis, one of the world's leadingmicrodisplay component manufacturers, as a key shareholder andpartner. Our unique NECSEL technology is ideal for many current andfuture projection display applications. It will provide consumers witha lower cost, longer lifetime solution than other light sources, alongwith an unmatched viewing experience. This partnership poises bothcompanies to launch RGB laser lighting into the projection displaymarketplace."

Founded in 1998, Novalux has developed proprietary NovaluxExtended Cavity Surface Emitting Laser (NECSELTM) technology. NECSELtechnology combines mass volume manufacturability with excellentoptical performance. NECSEL device attributes include bright,reliable, consistent, speckle-free light output from a compact,low-cost package, making them ideal for current- and next-generationdisplay applications.

Unaxis Optics Division is a recognized technical leader in theconsulting, prototyping, and volume production of optical thin-filmproducts. The Optics Division is headquartered in the Principality ofLiechtenstein also with operating facilities in Golden, Colorado (USA)and Shanghai, China. Unaxis Optics is a division forming part of theUnaxis Group of companies (SWX:UNAX) which is headquartered inPfaffikon/SZ, Switzerland. Unaxis worldwide employs around 6,400individuals and achieved sales of CHF 1,605 million in 2005.

You will find more information on our website at:www.optics.unaxis.com