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StockerYale, Inc. Announces Medical Market Focus and Business Development Strategy for 2008
Wednesday January 9, 7:00 am ET
- Sales to Medical to Grow to Approximately 20% of Total Sales for 2008 -

SALEM, N.H.--(BUSINESS WIRE)--StockerYale, Inc. (NASDAQ: STKR - News), a leading designer and manufacturer of structured light lasers, LED modules and specialty optical fibers for industry leading OEMs, today announced that it will place an increased emphasis on medical market business development in 2008 that will leverage its investments in medical product research and development.

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Mark W. Blodgett, Chairman and Chief Executive Officer of StockerYale, stated, “StockerYale’s key objective in 2008 is to substantially expand sales to the medical instrumentation markets across all three of our product lines – lasers and specialized optics for the bioinstrumentation market, specialty optical fiber (SOF) for the medical laser market, and LED systems for dermatology and dental equipment, to name a few. Sales to the medical vertical increased from less than 5 percent of StockerYale’s total revenues in 2006 to approximately 12 percent in 2007, and we expect that they will represent approximately 20 percent of 2008 revenues given our existing customer relationships and multiple sales initiatives under way.

“Demand for bioinstruments is growing rapidly as the instrumentation evolves from the laboratory to higher performance, lower cost commercial clinical applications,” Blodgett continued. “The size of our addressable market for bioinstrumentation lasers and optics alone is estimated to be approximately $100 million, and revenue streams in the biomedical, dermatology and dental markets tend to be highly repeatable once a product has been designed-in. Increasing our percentage of sales to these markets will be a key factor in driving the operating leverage in our financial model. There is a large market opportunity for StockerYale in these markets and we believe we are well positioned with both our technology and products to be key provider.”

Medical Market and Applications

For laser modules used in bioinstruments, the evolution to commercial clinical applications is driven by the transition from bulky, power-consuming, difficult-to-operate gas lasers to semiconductor diode lasers that are robust, small and require little energy to operate. Utilizing a patent-pending process that efficiently transforms the laser beam into a variety of shapes and distributions, StockerYale has developed a “plug and play” laser module solution that is easy to integrate into end-user systems and will increase system performance in terms of both accuracy and throughput. The company’s innovative Lasiris™ PureBeam fiber-coupled lasers and patent pending Flat-Top² Generator laser beam shaping modules are enabling it to break into new markets such as spectroscopy, fluorescence, confocal microscopy, and DNA sequencing, which require laser sources with extremely high output power stabilities.

StockerYale’s specialty optical fiber division is entering the medical market with fiber-based laser delivery assemblies in partnership with one of the world’s leading medical equipment companies. Lasers, which are used as surgical tools for ablation, cutting and coagulation of tissue as well as a variety of minimally invasive procedures, use fiber assemblies to deliver the high power laser light from the laser to the patient.

In LED systems for the medical market, StockerYale holds unique advantages with core competencies in both chip-on-board-based LED technology and customized optics. Its advanced custom LED solutions and strong optical modeling and design skills overcome the various difficulties inherent in the engineering of LED illumination, enabling the company to develop extremely compact, high-brightness LED illumination systems for unique dental and medical applications that previously could not be realized with standard technology.

Medical Customers and Products

StockerYale’s Lasiris™ PureBeam and Flat-Top² Generator laser beam are currently in trials with most of the major manufacturers of bioinstrumentation systems. The company also has several existing medical customers including Erchonia Medical Instruments, a leader in low power laser therapy for dermatology and pain management treatments, for its laser modules.

Having completed significant development efforts in 2007, the company’s specialty optical fiber division expects to commence shipments of its first fiber-based laser delivery assemblies for minimally invasive surgery in the first quarter of 2008.

Twenty of StockerYale’s LED system modules will be used in point of care treatment systems under development to be used as a photo-initiator for a pharmaceutical product and will be involved in clinical trials in the spring of 2008. Each module incorporates more than 100 each of two types of LEDs with custom wavelengths. Each module also incorporates optical design features, thermal management expertise and an integrated control circuit. The company also expects to significantly ramp up production of its custom-engineered LED modules for the dental market for a Fortune 100 company in 2008.

Concluded Blodgett, “We enter 2008 on the cusp of delivering on our medical vertical strategy to further penetrate a fast-growing and significant market opportunity. Coupled with the recent appointment of a new chief operating officer and chief financial officer tasked to improve operational performance across the entire organization and underpinned by market-leading technologies, we have in place the requirements for a successful 2008 and beyond.”

Investor note:

Mark Blodgett, Chairman and CEO, will present at the Tenth Annual Needham Growth Stock Conference in New York City on January 11th at 11:00am ET. As part of his presentation, Mr. Blodgett will also provide an overview of the company’s medical instrumentation strategy. A live and archived webcast of the presentation can be found here: http://stockeryale.com/investor/events.htm

Mr. Blodgett will also meet with institutional investors at the Conference. To schedule a 1:1 meeting, please contact Investor Relations Counsel. Contact details are located at the bottom of this press release.

About StockerYale

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. For more information about StockerYale and their innovative products, visit the Company's web site at www.stockeryale.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact, including without limitation, those with respect to StockerYale's goals, plans and strategies set forth herein are forward-looking statements. The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in these forward-looking statements: uncertainty that cash balances may not be sufficient to allow StockerYale to meet all of its business goals; uncertainty that StockerYale's new products will gain market acceptance; the risk that delays and unanticipated expenses in developing new products could delay the commercial release of those products and affect revenue estimates; the risk that one of our competitors could develop and bring to market a technology that is superior to those products that we are currently developing; and StockerYale's ability to capitalize on its significant research and development efforts by successfully marketing those products that the Company develops. Forward-looking statements represent management's current expectations and are inherently uncertain. You should also refer to the discussion under "Factors Affecting Operating Results" in StockerYale's annual report on Form 10-KSB and the Company's quarterly reports on Form 10-QSB for additional matters to be considered in this regard. Thus, actual results may differ materially. All Company, brand, and product names are trademarks or registered trademarks of their respective holders. StockerYale undertakes no duty to update any of these forward-looking statements.


Contact:

The Piacente Group
Sanjay M. Hurry, 212-481-2050
[e-mail]