StockerYale Wins Fiber Contract

SALEM, N.H. -- StockerYale, Inc. (Nasdaq: STKR - news), a leading provider of phase masks, specialty optical fiber, and specialized illumination products, today announced that it has received its first contract to develop a custom specialty optical fiber from one of the top-three optical equipment suppliers in the world. Dr. Danny Wong, president of iSOFC, a majority owned subsidiary of StockerYale, will head the research and development team assigned to design this custom specialty optical fiber. It is expected that the research and engineering efforts will be completed by the end of September 2001, and that the production of this specialty optical fiber is projected to begin in the fourth quarter.StockerYale announces that Phase I of the company's SOF facility has been completed with the installation of state-of-the-art modified chemical vapor deposition (MCVD) equipment. This facility will be used for both the production and drawing of specialty fiber optic preforms which in turn, produce specialty optical fiber. The company expects additional MCVD and drawing equipment to become fully operational during the second half of 2001.StockerYale has completed an equity private placement of 1.7 million shares of common stock at a price of $10.25 per share with net proceeds totaling approximately $16 million . In connection with the sale, the company has agreed to provide customary registration rights to the purchasers who were predominantly institutional investors. William Blair & Company acted as exclusive placement agent for the offering. StockerYale Inc.