Picolight First to Ship 4G 1310nm VCSEL Transceivers; A Landmark Achievement, 1310nm VCSEL-based Transceivers Are Re-Writing the Rules in the Optical Communication Market for High-Bandwidth and High-Density Optical Systems.

LOUISVILLE, Colo. -- Picolight, Inc., a leading designer and manufacturer of optical transceivers and components, today announced that the company is the first to ship 1310 nanometer (nm) vertical cavity surface-emitting laser (VCSEL) transceivers in a 4 gigabit per second (Gbps) triple-rate (1, 2 and 4Gbps) Small Form Factor Pluggable (SFP) configuration that meets the needs of one of the fastest growing segments of the data center market. With extended reach capability and low power consumption, the new transceivers satisfy a broad range of short-to-medium distance applications including 4Gbps Fibre Channel at 10km for storage area networks (SANs). Similar to 850nm VCSEL transceivers, 1310nm VCSEL transceivers have the potential to dominate short-to-medium distance single-mode fiber applications, displacing existing edge emitting laser transceivers in high-bandwidth and high-density optical systems.

"Today's announcement marks another milestone in Picolight's continued development and leadership of VCSEL technology, which delivers high-functional integration and high-speed data rates for the growing long-reach data center market," said Steve Hane, Picolight's president and chief executive officer. "We intend to leverage our 1310nm VCSEL development efforts in multiple new markets and applications including high-bandwidth and high-density optical platforms, providing significant design-impact benefits to our customers, while building on our early lead in the rapidly emerging market for better-performing, more power-efficient enterprise, storage area and metro network interconnect technology."

"Compared to competing technologies, our 4Gbps SFP 1310nm VCSELs deliver lower power consumption, lower electromagnetic interference (EMI) and lower heat generation, resulting in increased performance and reliability over single-mode fiber for our fiber channel systems customers," said Vidya Sharma, Picolight's vice president of marketing. "Because of the high drive currents of edge-emitting lasers, module-level heat dissipation is becoming limiting for high-density, high-bandwidth systems. Next-generation high-density form factors will strongly favor exclusive use of VCSEL technology due to its low heat and low EMI-generation characteristics."

Pioneered in 1989 by optical innovator Jack Jewell, Picolight's founder and chief technology officer, VCSEL technology emits light vertically through the surface of a wafer -- rather than through its edges, as with other edge-emitting Fabry-Perot (FP) and differential feedback (DFB) lasers. The devices require very little electrical current to produce optical energy output of 850nm and above, and they emit a narrow, circular beam that makes it easy to transmit the light into an optical fiber. VCSELs are also less expensive to manufacture, easier to test and more efficient to operate than other laser technologies.

"The low power consumption benefits of 1310 VCSEL technology make it an increasingly attractive solution for 4G Fibre Channel switches where heat dissipation is a serious and escalating concern," said Jagdish Rebello, principal analyst with iSuppli Corporation. "The availability of 1310 VCSEL transceivers from companies like Picolight proves the maturity of this long-anticipated technology, and is a major step toward ensuring data center connectivity to meet long-reach applications at or above 10km."

Picolight's 1310nm VCSEL transceivers enjoy all the advantages of the company's successful short-reach 850nm VCSEL transceivers, while achieving the longer reach on single-mode fiber. The new 1310nm VCSEL transceivers significantly reduce thermal and EMI emissions from those present in alternative transceivers, which is critical for next-generation high-bandwidth, higher density platforms, including 8Gbps and faster.

Product Highlights

Picolight's VCSEL-based 1310nm transceivers utilize proven and widely deployed 850nm transceiver architecture. With a single transceiver architecture addressing multiple specifications at 4km and 10km and reaching up to 40km, Picolight offers a complete portfolio to meet the needs of Fibre Channel customers. The 1310nm VCSEL transceivers feature an uncooled 1310nm oxide-confined, high-speed VCSEL coupled to an LC optical connector, extended temperature and voltage range options, internal AC coupling on both transmit and receive data signals, and an all-metal housing for increased EMI shielding. Picolight has ensured the reliability for its 1310nm VCSEL family through the use of process and design controls and validated with a comprehensive set of reliability tests. Picolight also plans to extend its 1310nm VCSEL product line from 4Gbps Fibre Channel applications to 10Gigabit Ethernet applications at 10km or more over single-mode fiber.

Picolight's 4G 1310nm VCSEL transceiver is currently available for sampling with general availability in Q1 2006.

About Picolight Inc.

Picolight Inc., headquartered in Louisville, Colo., is an innovative designer and manufacturer of optical components and vertical cavity surface emitting laser (VCSEL)-based optical transceivers for high-bandwidth optical systems in rapidly growing data center, enterprise, storage area, and metro networking markets. The company's mission is to leverage its breakthrough VCSEL technology, vertically integrated manufacturing strategy, and a market-focused culture to drive next generation optical interconnects for datacom applications. The company is dedicated to targeted product innovations in key growth markets that will fuel business expansion and profitability. Picolight is a rapidly growing, venture-funded company in a fast-paced optical transceiver and components market. For more information, see www.picolight.com or email [e-mail].