Photonic Products Ltd acquired by StockerYale

7th November 2006

ES Admin

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StockerYale, Inc. (NASDAQ: STKR), an independent provider of photonic-based products, has announced that it has acquired privately held Photonic Products Ltd. of the United Kingdom, a well-known provider of laser diode modules and laser diodes for industrial, medical and scientific markets. This strategic acquisition will significantly broaden StockerYale's product portfolio of laser modules, increase StockerYale's 2006 revenues by approximately 50%, and is expected to substantially improve the profitability and cash flow of the Company.

Photonic Products manufactures custom designed electro-optical sub-assemblies and optoelectronic components, based on semiconductor laser diode technology, for leading OEM manufacturers. In addition, the company is a leading distributor of high performance industrial laser diodes, including blue-violet, red and infrared laser diodes from Sanyo, Sony and Opnext, and high performance optical lenses from Panasonic.

The company was founded in 1995 and has 45 employees. Photonic Products operations are located near Stansted, England with sales offices in Germany and California. Over the last five years, the
company's revenues have grown at a compound annual growth rate of 32% in response to worldwide customer demand for its laser diodes, laser modules and optical components. More recently, the company has invested in CNC manufacturing technology to increase production capacity and
improve overall productivity. This year, Photonic Products received the Queen's Award for Enterprise: International Trade. Current management, led by Tony Pope, Founder and Managing Director, and Damon Cookman, Director of Operations, will continue to manage the business.

Photonic Products now has access to StockerYale's R&D resources, specifically its expertise in optics, to further drive new product introductions and to meet the needs of our customers, said Tony Pope,
Managing Director of Photonic Products. Besides cost savings, we also expect to benefit from numerous cross-selling opportunities with each other's customers and to access StockerYale's distribution channels throughout the world, Pope added.

StockerYale, Inc., headquartered in Salem, New Hampshire, is an independent designer and manufacturer of structured light lasers, LED modules, and specialty optical fibers for industry leading OEMs. In addition, the company manufactures fluorescent lighting products and phase masks. The Company serves a wide range of markets including the machine vision, industrial inspection, defense, telecommunication, sensors, and medical markets. StockerYale has offices and subsidiaries
in the U.S., Canada, and Europe.