Coherent, Inc. Completes Acquisition of Star Medical Technologies.SANTA CLARA Santa Clara, city, Cuba Santa Clara (sän`tä klä`rä), city (1994 est. pop. 217,000), capital of Villa Clara prov., central Cuba. , Calif.--(BW HealthWire)--April 27, 1999-- Coherent, Inc. (Nasdaq:COHR COHR Congolese Observatory of Human Rights ) announced today it has completed the acquisition of Star Medical Technologies, Inc. for $65 million in cash from Palomar Medical Technologies, Inc. (Lexington, Mass.) (Nasdaq:PMTI PMTI Potomac Massage Training Institute PMTI Project Management Training Institute ) and certain other Star employees. Star, based in Pleasanton, Calif., manufactures the highly successful and reliable LightSheer(TM) Diode Laser See laser diode. Systems. The laser hair removal Epilation performed by laser was performed experimentally for about 20 years before it became commercially available in the mid 1990s. Intense Pulsed Light (IPL) epilators, though technically not a laser, use xenon flash lamps that emit full spectrum light. market is currently the fastest growing area of the aesthetic market. Since the introduction of the LightSheer(TM) in March 1998, Star has shipped more than 350 units through the Coherent distribution network to customers worldwide. Star is a leader in the hair removal market and last week announced that the LightSheer(TM) Diode Laser System received clearance from the U.S. Food & Drug Administration to claim that it achieves "permanent hair reduction." This is the first such clearance to be granted to the new generation diode based technology. The LightSheer(TM) Laser Diode A semiconductor-based laser used to generate analog signals or digital pulses for transmission through optical fibers. Both laser diodes and LEDs (light-emitting diodes) are used for this purpose, but the laser diode generates a smaller beam that is easier to couple with the smaller core System is smaller in size than conventional systems, providing greater portability and ease of use for physicians. Bernard Couillaud, Coherent's President and Chief Executive Officer, commented, "While we are excited about owning the rights to the LightSheer(TM) product, Star is not a one product company. We view Star as a semiconductor laser company with proven laser diode technology that can easily be applied into commercial and other medical markets. Star's proprietary technology will play a long-term strategic role in the expansion of our Semiconductor Group's laser diode markets. Star's stacking capabilities will broaden Coherent's laser diode markets to other medical applications, to material processing such as soldering, welding and thermal treating, laser pumping Laser pumping is the act of energy transfer from an external source into the laser gain medium. The energy is absorbed in the medium, producing excited states in its atoms. , and illuminators." As part of the transaction, Coherent is acquiring all the intellectual property related to Star's business, including four issued United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. patents and a pending application relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc high power semiconductor laser diode arrays. Also, as part of the transaction, Coherent is licensed under the Anderson hair removal patent. The acquisition will be treated as a purchase. It is estimated that the results for the third fiscal quarter ending July 3, 1999 will include a one time In-Process R&D pre-tax and after tax charge of $16 million and $10.5 million ($.44 per diluted share), respectively. The remaining goodwill and other intangibles of approximately $51 million will be amortized over useful lives primarily ranging from 7 to 15 years. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement Under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and The statements in this press release that relate to future plans, events or performance are forward-looking statements that involve risks and uncertainties, including risks associated with uncertainties related to currency adjustments, contract cancellations, manufacturing risks, competitive factors, uncertainties pertaining to customer orders, demand for products and services, development of markets for the Company's products and services 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 release publicly the result of any revisions to these forward-looking statements that may be made to reflect 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 8K, as applicable. Founded in 1966, Coherent, Inc. is a Standard & Poor's SmallCap 600 company and a world leader in the design and manufacture of lasers and systems for medical, scientific and commercial applications. Please direct any questions to Robert J. Quillinan, Executive Vice President and Chief Financial Officer at 408/764-4174. For more information about Coherent, visit the company's Web site at http://www.cohr.com for product and financial updates. To receive a full text copy of this press release by fax, please call 877/329-2647. |
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