USHIO Announces Investment in Necsel Intellectual Property, Inc.

Enters Semiconductor Laser Market with 49% Equity Stake in U.S. Laser Manufacturer

Tokyo, Japan – July 13, 2009 – USHIO INC. is pleased to announce that on May 4, Ushio America, Inc. (“UAI”; Head office: California, USA; President: Kenji Hamashima), a wholly-owned subsidiary of USHIO INC. (“USHIO”; Head Office: Tokyo; President: Shiro Sugata), acquired 49% of the outstanding shares of semiconductor laser manufacturer Necsel Intellectual Property, Inc. (“Necsel”; Head office: California, USA; President & CEO: William Mackenzie).

Necsel was founded in November 2008, incorporating both semiconductor laser technology and non-linear crystal expertise to generate both infra-red and visible laser wavelengths. This includes the core  laser technology and patents formerly owned by US semiconductor laser R&D company Novalux, Inc., and periodically poled lithium niobate (PPLN) capabilities..  The combination of the infra-red extended cavity surface emitting laser and the PPLN crystal, both of which use Necsel’s patented technology, has enabled high power miniature lasers with simple structures that are capable of direct conversion to visible laser wavelengths and are characterized by high wavelength conversion efficiency and reliability. Moreover, as the laser and PPLN crystals can be manufactured with wafer-based techniques, reduction of manufacturing cost can be expected through automation.

Necsel has been engaged in research and development to enable the use of semiconductor lasers as light sources for specialized lighting, digital cinemas, laser TVs, digital projectors and the like. USHIO intends to acquire 100% equity interest in Necsel through UAI within the next five years, and the Ushio Group in cooperation with Necsel is committed to provide a variety of high quality light sources that satisfy its customers’ needs.

Necsel products are characterized by a simple structure that utilizes a combination of a high power infra-red surface-emitting laser equipped with 24 emitters in array form and PPLN crystals. By placing the PPLN crystals in a proprietary external resonator, the 24 infra-red laser beams are efficiently converted into visible laser beams, amounting to a total laser output of 3W or more from a module only one cubic inch in size.

Visible laser beams in various wavelengths can be obtained by altering the emission wavelengths of the infrared laser. By utilizing methods similar to those employed in green laser beams, Necsel has been able to achieve an output of 3W or more for blue laser beams (wavelength = 465nm) as well. Further, virtually any visible wavelength can be generated with the Necsel platform.

Cost reduction has been realized in Necsel products through wafer-based manufacturing and testing of Necsel arrays and PPLN crystals.

Dense integration of emitters into array form has made the Necsel lasers more compact and capable of being loaded onto various applications requiring miniaturization, such as projectors.

Necsel is the developer and owner of the proprietary Necsel™ laser technology. The Necsel technology, which was invented in 1998, is the first high power visible laser light source to combine mass manufacturability with a compact, low-cost package.
Necsel is able to deliver the necessary red, green and blue wavelengths to enter the consumer lighting marketplace in projection applications such as digital cinemas and planetariums. Laser wavelengths allow for desirable attributes like higher brightness, more saturated colors with wider color gamut, and higher reliability for longer lifetime and lower operating costs. Necsel will also penetrate many illumination and lighting applications. This includes a wide variety of applications such as “laser neon”, a replacement for neon tube lighting, and laser LCD backlight units. For more information:http://necsel.com/

Novalux, Inc. developed the Novalux Extended Cavity Surface Emitting Laser (Necsel)-brand visible-light laser, from which Necsel Intellectual Property, Inc. has taken its name. It was known for superior technological capabilities in the visible-light laser field, notably the joint development of a laser light source module for projector TVs with a leading Japanese electronics manufacturer as well as the presentation of the “laser TV” prototype at the 2007 International CES.

Established in 1967 as a subsidiary of USHIO Inc., Japan, UAI has two manufacturing sites in North America, and now offers over 3,500 items to a variety of industries and markets; General Lighting, Specialty Lighting, Semiconductor, Entertainment, to name a few.  UAI is focused on becoming the number one lighting solutions provider in the Americas through superior service to its customers. UAI serves as an ultimate parent company in the Americas within USHIO group. For more information: http://www.ushio.com/