Coherent, Inc. Release: Excel Acquisition Receives DOJ Clearance, Awaiting FCO Approval

SANTA CLARA, Calif., May 23 /PRNewswire-FirstCall/ -- Coherent, Inc. today announced the status of regulatory approvals for its acquisition of Excel Technology, Inc. John Ambroseo, Coherent's President and CEO said, "We received clearance from the U.S. Department of Justice under the Hart-Scott-Rodino Antitrust Improvements Act on May 9, 2006. Given our revenue base in Germany, we were required to file an application for approval with the German Federal Cartel Office (FCO). The FCO has not yet reached a final determination with regard to the merits of our application. While we can not close the transaction without FCO approval, we are optimistic that the FCO will clear the acquisition in due course and permit us to complete the acquisition of Excel prior to the end of the quarter. Coherent and Excel are fully cooperating with the FCO's investigation."

The statements in this press release that relate to future plans, events or performance, including statements such as we are confident of FCO regulatory clearance and the timing of such clearance by the end of the quarter are forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties, including risks associated with the FCO regulatory clearance process and the timing of its investigation and the ability of Coherent and Excel to successfully work with the FCO in its investigation and other risks identified in the Company's SEC filings. Actual results, events and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to update these forward-looking statements as a result of events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Readers are encouraged to refer to the risk disclosures described in the Company's reports on Forms 10-K, 10-Q and 8-K, as applicable.

Founded in 1966, Coherent, Inc. is a Standard & Poor's SmallCap 600 company and a world leader in providing photonics based solutions to the commercial and scientific research markets. Please direct any questions to Leen Simonet, Chief Financial Officer at 408-764-4161. For more information about Coherent, visit the Company's Web site at http://www.coherent.com/ for product and financial updates.

CONTACT: Leen Simonet of Coherent, Inc., +1-408-764-4161

Web site: http://www.coherent.com//