TeraXion Acquires DiCOS Technologies Inc.

Quebec City, Canada — TeraXion Inc., a technology leader in the development and manufacturing of optical filters for industrial applications and high-speed communication networks is pleased to announce the acquisition of DiCOS Technologies. This transaction continues TeraXion's diversification strategy of enlarging its range of products and services to address new photonic markets.

DiCOS Technologies, a privately held company located in the "Parc Technologique du Québec métropolitain" is internationally renowned for its expertise in the control and stabilization of optical frequencies. DiCOS products stabilizes the frequency of light sources, such as lasers, to a precision comparable to atomic clocks. Such sources are used in defense and aerospace applications of spectroscopy, metrology and telemetry allowing for very precise measurement of distances.

"This acquisition will enlarge the range of innovative optical components and photonic subsystems that we can offer to our OEM customers. Both companies focus has been to offer filtering and lightwave control products and by combing our complementary product lines synergies will be created," said Alain Chandonnet, Chief Executive Officer of TeraXion. "We are more and more active in the optical sensing market, notably in offering fiber optic probes. To interrogate fiber optic probes light sources are necessary and DiCOS' expertise in frequency control will allow us to offer more complete and very competitive solutions," added Mr. Chandonnet.

"Our association with TeraXion will allow us access to a wider range of technical resources and manufacturing expertise, and will permit us to improve the products and support that we can offer to our customers," confirmed Jacques Delisle, Chief Executive Officer of DiCOS.

With this transaction TeraXion's work force increases to 70 employees. The activities of both companies will be located in the current TeraXion headquarters situated in the Parc Technologique du Québec métropolitain.

About TeraXion
TeraXion is a leading designer and manufacturer of state-of-the-art optical components for high speed fiber optic transmission networks. Its ClearSpectrum™ line of innovative optical components allows equipment vendors to better manage fiber optic transmission signal impairments caused by dispersion. TeraXion also offers customized filtering and optical design solutions to the photonics industry. Based on advanced Bragg grating technology, its fiber optic filters can address a wide variety of complex filtering and spectrum shaping requirements.

About DiCOS Technologies
DiCOS Technologies manufactures high-performance laser systems and ultra-precise frequency calibration tools. Its patented solutions ensure absolute control of the frequency where a high degree of accuracy and stability is required. DiCOS Technologies' product portfolio offers unique features and benefits to industrial, environmental and research applications.

Source: TeraXion