TRW Acquires Commercial Laser Company

23 October 2000

TRW Acquires Commercial Laser Company, Establishes Position as Volume Supplier of Solid-State Laser Products

    REDONDO BEACH, CALIF.--Oct. 23, 2000--In a strategic initiative to become a leading, high-volume supplier of solid-state laser products, TRW has purchased Cutting Edge Optronics Inc., a privately held, St. Louis, Mo.-area designer and manufacturer of solid-state lasers, related components and laser diodes, for approximately $19 million in cash plus the assumption of approximately $5 million in debt.
    The acquisition positions TRW to exploit its extensive portfolio of advanced laser technologies in several rapidly growing markets. Cutting Edge brings additional laser technologies and design capabilities, as well as the ability to produce in volume several key solid-state laser products.
    Chief among its products will be extreme ultraviolet (EUV) light sources, an emerging, laser-based photolithography technology for the semiconductor equipment-manufacturing segment. EUV will allow semiconductor chipmakers to continue shrinking the size and increasing the operating speeds of advanced microcircuits well into the next decade.
    "This acquisition builds on our successful EUV development work with the EUV Limited Liability Company and positions TRW to become a leading supplier of next-generation light sources to semiconductor equipment manufacturers," said David M. Cote, TRW president and chief operating officer. "While slightly dilutive to our 2001 earnings, it is part of our ongoing corporate strategy to create additional shareholder value by leveraging our advanced technologies in the commercial marketplace."
    Under terms of the agreement, Cutting Edge Optronics will become a wholly owned subsidiary of TRW. It will merge TRW's expertise in high-power, solid-state lasers and EUV light source technology with Cutting Edge Optronics' low-cost laser design and manufacturing processes, volume production capabilities and expertise in high-power laser diodes. The new subsidiary will have its headquarters in St. Charles, Mo., the site of Cutting Edge Optronics' current facilities.
    According to Timothy W. Hannemann, executive vice president and general manager, TRW Space & Electronics Group, Cutting Edge Optronics also provides a foundation for TRW to enhance its product offerings to both commercial and government solid-state laser customers.
    "This acquisition ensures cost-effective TRW access to the high-power, solid-state laser components that our government customers need for their stringent performance requirements," Hannemann said. "It also positions us to address opportunities for solid-state laser products in fiber optic telecommunications applications."
    Richard Walker, president and chief executive officer of the new subsidiary, is bullish on the future: "TRW's leadership position in EUV technology combined with Cutting Edge Optronics' low-cost laser manufacturing capabilities gives us a significant head start in inserting EUV light sources into next generation photolithography equipment," he said. "TRW's additional solid-state laser intellectual property and capital investments in Cutting Edge Optronics also will allow us to address new solid-state laser business opportunities, while strengthening our ability to serve the needs of our current customers."