Tampere, May 4th, 2006 - Modulight Inc. announces that it has received a 364,000 USD contract from European Space Agency (ESA) to develop lasers eventually targeted for the subsequent onboard atomic clock upgrades for a second generation system of the European satellite navigation mission Galileo. The lasers will be developed for realizing compact laser pumped Cs-beam atomic clocks, which are expected to be key elements in the upgraded navigation system technology. When the first generation Galileo system is fully deployed after 2010, it will consist of 30 satellites in medium earth orbit MEO. Atomic clocks are also widely used in commercial telecom and testing equipment where the developed new compact laser based atomic clocks will have a significant market potential.

“By improving the clock performance on board the satellite over the long-term, the need to correct the on-board clocks by more accurate ground clocks could be minimized. The technology to enable this is the laser pumped versions of the atomic clocks now in commercial use vis-à-vis Rubidium Atomic clocks and caesium beam clocks. The promise of atomic clock performance thus rests on the success of the laser development and its subsequent space qualification. Having vast experience of laser design and manufacturing, in addition to its recent work for ESA on SMOS, Modulight is in excellent position to complete this type development work”, says the technical officer from the European Space Agency.

“We are excited to launch this development as the hot field of positioning is quickly becoming part of our everyday life. Positioning applications from car navigation and collision avoidance systems to GPS devices used by hikers are becoming increasingly popular. This contract further supports Modulight’s role as leading European laser supplier for space domain from communication lasers to high power lasers and specific applications like this atomic clock laser. We have already proven our space capability by supplying communications lasers to ESA SMOS mission in 2004. This new contract along with others being negotiated will help us to fully exploit our capabilities in space applications, and also opens interesting new business opportunities in commercial markets”, says Dr. Petteri Uusimaa, President & CEO of Modulight.

About Modulight, Inc.
Modulight provides value-adding solutions to optical applications in industrial, communication, medical, space and defense industries. Products include various types of semiconductor laser diodes from visible to Infrared (IR) wavelengths with output power levels from milliwats to over hundred watts. Modulight delivers its customers bare dies, unmounted laser bars, packaged devices and related consulting services. Modulight owns and operates a semiconductor fab in Tampere and has sales office in San Jose, California.

For further information, please contact:

Modulight, Inc.                        
Petteri Uusimaa
President & CEO