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7 April 2008


II-VI seeks buyer for CdZnTe radiation sensor division eV

II-VI Inc of Saxonburg, PA, USA says it has retained Roth Capital Partners to sell its x-ray and gamma-ray radiation sensor division, which trades as eV Products Inc and operates as a business within II-VI’s Compound Semiconductor Group (whose Wide Bandgap Materials group separately makes single-crystal silicon carbide substrates). eV’s revenues for the nine months ended 31 March 2008 and the fiscal year ended 30 June 2007 were $5.1m and $8.5m, respectively.

“II-VI has made significant investments in eV Products during the past 15 years that have enabled eV to become the industry leader in cadmium zinc telluride [CdZnTe] radiation detection systems,” claims president and CEO Francis J. Kramer. “We believe the time is right for eV Products to be owned by a company which can achieve significant competitive advantages by maximizing the value of eV’s differentiated capabilities in medical and homeland security imaging, and in industrial, scientific and space applications,” he adds.

The firm believes that the sale will enable II-VI to concentrate on its core strengths and focus its efforts on integrating recently acquired businesses (e.g. last October’s acquisition of HIGHYAG Lasertechnologie GmbH of Stahnsdorf, Germany, which manufactures fiber-delivered beam transmission systems and processing tools for industrial lasers). “This decision comes after careful and deliberate evaluation of our long-term strategy for creating sustained shareholder value,” says Kramer.

The firm expects eV to be classified as a discontinued operation and excluded from II-VI operating results starting with its fiscal third quarter (to end March 2008). Previous revenue guidance for fiscal Q3 was $81-84m (expecting that eV would contribute about $2m), so guidance without eV was $79-82m.

Now, excluding eV, II-VI has announced preliminary fiscal Q3 revenues of $81m, as well as bookings of $93m (both new company records). Full financial results should be released by 22 April.

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