1. Key Conference 2006 12 – 13 November 2006 Telecom-grade Diode Lasers for Industrial Laser Applications Toby Strite Manager of High Power Laser Marketing

2. © 2006 JDSU. All rights reserved.2 Outline  Evolution of Industrial Diode Lasers –Telecom-grade and beyond  Diode/Fiber-based Industrial Lasers

3. © 2006 JDSU. All rights reserved.3 Fiber-coupled Industrial Diode Laser Eras  Reliability (inception  2003) “$$$’s and *#&%^!!” –DPSS is considered technology of the future (“always has been, always will be…”) –Diode laser investment focused in telecom –Unreliable, low brightness bars are only choice  Telecom-grade (2003  ?) “$/Watt” –Telecom migrants disrupt brightness, drive $/Watt –Even low-end bars reliably deliver 10,000hrs –Reliability and $/Watts begin to de-couple

4. © 2006 JDSU. All rights reserved.4 What is a Telecom-Grade Diode Laser?  Operational Excellence and Business Breadth –Large, fully-absorbed fab (ISO-9001 a decade ago, now TL-9000) –High-volume off-shore assembly  Technical and Cost Roadmaps, Extensive Track Record –Platforms, not just products  Predictable, sustained performance –Rigorous NPI, PCN and PDN processes –Reliability understanding surpasses the qualification report  … Confidence and Transparency for the Customer!

5. © 2006 JDSU. All rights reserved.5 Telecom 980nm pump lasers since 1993…  90mW 980nm pumps assembled in Boston sold for $7000  Five chips, several packages, one transfer to China later… –500mW 980nm pumps sell well below $1000 –90mW 980nm pumps cost $300 –and 980nm pump vendors are (again) profitable  Over 13yrs, innovation and focused cost-reduction realized – 21% annual price reduction for 90mW part – 15% annual power increase for 980nm pumps – 26% annual $/mW price reduction to the market

6. © 2006 JDSU. All rights reserved.6 The Story Moves to Fiber Laser Pumps 14% average annual power increase Annual 17.5% (red) power increases enabling 26% annual $/Watt erosion predicts a reliable 35W fiber-coupled diode will sell for $70 in 2016…!!

7. © 2006 JDSU. All rights reserved.7 Third Industrial Diode Era - Efficiency  Diode Efficiency (2005  ?) “still $/Watt” –reliable power is limited by waste heat  For diodes to progress, efficiency must increase 32 Watts

8. © 2006 JDSU. All rights reserved.8 Optimizing single-emitter efficiency Research funded by DARPA SHEDS program promises power conversion efficiency improvements in future fiber laser pumps

9. © 2006 JDSU. All rights reserved.9 Diode Laser CY’06 TAMs  $3.5B diode laser market is 59% of total laser sales Source: Laser Focus World annual Laser Market Review (Feb’06) Optical storage - $1.9B Telecom/Datacom - $1.2B Industrial, Medical, Graphics and Other - $300M

10. © 2006 JDSU. All rights reserved.10 Industrial Diode Market Segmentation $300M Industrial Diode TAM “Fiber Laser Market set to grow at a 35% CAGR through 2010” – Strategies Unlimited, Apr’06 Solid-State and Fiber Laser Pumps $160M Medical Diodes $75M Graphic Arts $32M Misc. Pumps Displacement of classic lamp-pumped SSL and gas lasers by DPSSL Displacement of classic lasers by Direct Diode systems High-quality, telecom-grade diodes enable wholesale shift of industrial laser industry to diode-based solutions

11. © 2006 JDSU. All rights reserved.11 Diodes and Fiber – Disrupting the Laser Industry  Fiber is a new paradigm –Fiber-based LaserSS/Gas Lasers –Modular, spliced Delicate alignments –Service freeDisposables –High efficiency (25 + %)Low efficiency (few to 10%) –High brightnessInferior brightness  Direct Diode systems are just another fiber laser  Solid-state (classic) lasers are adopting fiber

12. © 2006 JDSU. All rights reserved.12 50W Fiber-coupled Direct Diode System

13. © 2006 JDSU. All rights reserved.13 Phoenix SSL platform Laser diodeFBGPP crystalbeam shaping/ light loop Not your typical diode-pumped solid-state laser: telecom style packages spliced fiber

14. © 2006 JDSU. All rights reserved.14 Summary  Pump diode lasers are mature, reliable –Telecom-grade diodes soon to be ubiquitous in the industrial laser industry  Fiber lasers are merely the most important variety of fiber laser