SANTA CLARA, Calif., April 16 /PRNewswire-FirstCall/ -- Coherent, Inc.(Santa Clara, CA)(Nasdaq: COHR), today announced that it has entered into adefinitive agreement to sell certain assets of Coherent's Auburn Opticsmanufacturing operation to Research Electro-Optics, Inc. (Boulder, CO), aprivately held optics manufacturing and technology company. Consistent withthe asset transaction, Coherent and REO have entered into a strategic supplyagreement whereby REO will provide optical manufacturing capabilities forCoherent, including fabrication and coating of optical components. Thetransition of the optics manufacturing assets from Auburn to Boulder willbegin immediately and is expected to be completed no later than the end of thesecond quarter of fiscal 2009. Coherent will further discuss the transactionduring its previously announced second fiscal quarter financial resultsconference call on April 24, 2008 at 1:30 P.M. P.T.

Forward-Looking Statements

This press release contains forward-looking statements, as defined underthe Federal securities laws. These forward-looking statements include thestatements in this press release that relate to the timing of the transitionof the optics manufacturing assets. These forward-looking statements are notguarantees of future results and are subject to risks, uncertainties andassumptions that could cause our actual results to differ materially andadversely from those expressed in any forward-looking statement. Factors thatcould cause actual results to differ materially include risks anduncertainties, including but not limited to risks associated with the timelytransition of equipment and preparation of REO's facility in Boulder,Colorado, and other risks identified in the Company's SEC filings. Readersare encouraged to refer to the risk disclosures described in the Company'sreports on Forms 10-K, 10-Q and 8-K, as applicable and as filed from time-to-time by the Company. Actual results, events and performance may differmaterially from those presented herein. Readers are cautioned not to placeundue reliance on these forward-looking statements, which speak only as of thedate hereof. The Company undertakes no obligation to update these forward-looking statements as a result of events or circumstances after the datehereof or to reflect the occurrence of unanticipated events.

Founded in 1966, Coherent, Inc. is a world leader in providing photonicsbased solutions to the commercial and scientific research markets.

Please direct any questions to Leen Simonet, Executive Vice President andChief Financial Officer at 408-764-4161. For more information about Coherent,visit the Company's Web site at http://www.coherent.com/ for product andfinancial updates.

SOURCE Coherent, Inc.