The directors of Arasor are pleased to announce they have signed definitive agreements to purchase a US laser company, Alfalight, and US owned, Australian company AOFR Pty Ltd.

• The USD$63M (total) all-scrip purchases are expected to be earnings positive, as both companies are cashflow positive.

• These acquisitions are consistent with our strategy and give Arasor the 3 key elements common to all its products – optical chip, laser chip and optical coupler.

• Both companies bring with them blue chip customers, including Telstra, Avanex,Siemens, and a variety of tier 1 telecommunications companies.

• The acquisitions contribute approximately USD$20M in revenue per annum,1st class management teams, and substantial revenue producing assets.
Arasor’s chief executive Dr Simon Cao said, “With these acquisitions, Arasor has brought the critical laser element in-house, enabling improved profitability and control of future laser developments in Arasor’s emerging markets. We now control the 3 key elements common to all our products (optical chip, laser chip and coupler), and bring significant revenue opportunities to bear in addition to their existing USD$20M per annum revenue streams. We are very excited about the prospect of expanding our product offering to include laser components for the telecom market .”

About Alfalight:
Originally founded in 1998, Alfalight is a designer and manufacturer of high-power diode lasers for the Telecommunications market. Alfalight has received over USD$57M
of venture funding, and substantial US government funding of R&D. Their assets include a state-of -the-art InGaAs FAB in which they grow their laser chips.
Mohan Warrior, CEO of Alfalight will continue to run the laser company as a wholly owned subsidiary of Arasor, and brings 23 years of semiconductor and photonics experience to the Arasor team. Prior to leading Alfalight's growth and profitability over
the last four years, he held senior leadership positions at Motorola Semiconductors (now Freescale) including managing globally distributed operations of 4,000 employees shipping $4B product annually." I am excited by the growth prospects that
Arasor brings, particularly in the emerging Asian markets of China and India. Arasor's unique optical chip technology will dramat ically enhance our proprietary laser capabilities to create a diverse range of differentiated telecom & consumer optical
products.”
Dr Cao also noted that “This deal expands our customer base & product offering as we leverage our products into Alfalight’s existing sales channels in the US, and their products through our current customers & channels in China & India. The management
team of Alfalight includes seasoned industry veterans from Motorola and Intel who bring semiconductor manufacturing management experience to our team.”
About AOFR:
AOFR was established in Canberra, Australia in 1984 manufacturing optical couplers for fibre lasers and WDM (optical communications & basis of “Cao’s law”) in 1988.
AOFR designs its technology and platforms in Canberra and mass manufactures and packages via a fully automated state of the art facility in Asia. In fact, AOFR created some of the world’s first automation technologies for the fiber optic industry & their machines are still used extensively today by global manufacturers. As part of this deal, Arasor also acquires in excess of USD$20million in assets.
AOFR’s technology gives Arasor control over the critical light delivery element common to all its products, coupling the light between their transmitters in wirelines
and wireless, and from the laser TV source to the display. AOFR’s products & customers are a perfect compliment to Arasor’s, thereby broadening the revenue base & increasing revenue growth.
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