Nanovation Technologies Purchases Manufacturing Facility For Optical Components in Northville Township; Company will Invest $41.6 Million for Project.

Business & Technology Editors

MIAMI--(BUSINESS WIRE)--July 12, 2000

Nanovation Technologies, an innovative pioneer of integrated optical technology, has purchased a 108,000 square-foot manufacturing facility located in Northville Township, Mich., for its domestic semiconductor fabrication operations.

The company is planning to invest $41.6 million in this project, including the land, building, machinery and equipment.

"Nanovation Technologies is exactly the type of high-tech employer we are striving to attract to our great state," said Governor John Engler. "Attracting this state-of-the-art company puts further fuel in Michigan's high-tech engine."

Nanovation's Northville Facility, located at 47050 Five Mile Road, Northville Township Mich., is eventually expected to house up to 539 employees, which will make it one of the largest area employers.

"The facility purchase gives Nanovation the flexibility to determine the most cost-effective way to meet market demands for our highly integrated photonics products at any given time," said G. Robert Tatum, Nanovation president and chief executive officer. "As this facility was already outfitted with state-of-the-art manufacturing equipment, we expect to save at least a year in making our products commercially available."

The Governor announced an approval of a Michigan Economic Growth Authority (MEGA) tax credit worth an estimated $9.7 million over 11 years to Nanovation Technologies, resulting in a net positive gain for the state of $35.3 million after tax credits.

The new manufacturing facility will provide more than $45 million in revenue to the state over the life of the agreement and $563 million in personal income during that time.

As part of its commitment to the State of Michigan, Nanovation also announced that the Michigan-based Princeton Capital Fund has committed to invest in the company. "We believe that Nanovation Technologies has the right approach, technology, products and management team to offer the integrated components that provide the most complete solution in a photonics switching environment," said Daniel Dorman, President of Princeton Capital Fund, LLC. "Through its proprietary relationships with Northwestern University and the Massachusetts Institute of Technology, the company is not only developing products that meet market needs today, it is concentrating on next generation technology and products."

Situated on 20 acres, the 4-year-old plant includes premier clean rooms vital for the semiconductor manufacturing of nanophotonic devices, as well as space for engineering development, R&D, prototype construction, assembly and test, environmental screening, offices and shipping and receiving. The site is large enough to accommodate future campus style expansions.

This internal resource will be used to implement Nanovation's strategic plan to meet expected market demands as telecommunications companies and other network providers begin to upgrade their networks to offer users substantially greater capacity. Nanovation's integrated optical components eliminate the inherent inefficiencies of opto-electronic-based components, which hinder the speed, and capacity of today's networks.

About Nanovation Technologies Inc.

Nanovation Technologies is dedicated to designing and developing customized integrated optical devices and discrete components for the explosive fiber communications market. Its first-generation product portfolio is based on truly integrated, high performance optical components including switches, splitters, couplers and monitoring taps that offer significant price and performance advantages as well as a complete line of EDFA products. Headquartered in Miami, the company also has laboratories at the Massachusetts Institute of Technology and Northwestern University; a manufacturing facility located in Northville Township, Mich.; as well as its subsidiary, Apollo Photonics, based in Burlington, Ontario, Canada. For additional information, visit the company's Web site at www.nanovation.com.