nLIGHT Corporation acquires majority interest in Optotools GmbH

Vancouver, WA USA / Heilbronn, Germany September 2, 2008 – nLIGHT Corporation (nLIGHT), a leading supplier of high-power semiconductor lasers and fibers, announced today that it has acquired a majority interest in Optotools GmbH (Optotools).

Optotools, established in 2001 and located in Heilbronn, Germany is a leading supplier of high-power semiconductor lasers for industrial customers. The established Optotools product line will remain and new, integrated products will be introduced in the next 12 months. Zukunftsfonds Heilbronn GmbH & Co. KG (ZFHN) will remain as investor and business partner, and Frank Pfeffer will continue as Managing Director of Optotools.

“This acquisition further enhances our portfolio of products for the industrial laser market”, stated Scott Keeney, nLIGHT’s President and CEO. “We are pleased to have the Optotools team join nLIGHT and to expand our investment in the German market through operations in Heilbronn.”

“We are excited to join the nLIGHT team and leverage our mutual capabilities to continue expanding our business in industrial lasers”, said Frank Pfeffer. “The market for high-power semiconductor lasers continues to grow. In order to deliver the best technical solutions and superior support for industrial customers, it is critical to integrate all core competencies.”

Thomas R. Villinger, CEO of ZFHN, stated, “We are pleased to have nLIGHT invest in Optotools and Heilbronn. One of the goals of ZFHN is to promote young, innovative companies to a successful expansion path. Relevant know-how will be brought together with nLIGHT and Optotools in order to expand beyond Europe. nLIGHT and Optotools are ideal examples of technology companies that will excel in Heilbronn.”

About nLIGHT Corporation

nLIGHT is a leading supplier of innovative high-power semiconductor lasers and fibers for industrial, medical, defense and consumer applications. nLIGHT provides customers advantages in performance, reliability and efficiency. Global support is provided through state-of-the-art manufacturing and application centers in North America, Europe, and Asia. www.nlight.net

About Optotools GmbH

Optotools is a leading manufacturer of industrial fiber-coupled high-power semiconductor lasers headquartered in Heilbronn, Germany. The products range from 100 W to multi kW for different applications in materials processing. Optotools provides customers compact and reliable high-brightness lasers. www.optotools.de

About Zukunftsfonds Heilbronn GmbH & Co. KG

Privately held Zukunftsfonds Heilbronn is a regional venture capital fund that supports the development of young innovative companies from start-up to mature stage. Zukunftsfonds Heilbronn primarily invests as lead or co-lead investor in companies that have a presence in the technology- and growth region Heilbronn in the South of Germany. www.zukunftsfonds-hn.com