May 10, 2000

BATTELLE - NTT - MITSUBISHI - MIC
JOINT VENTURE COMPANY TO BE ACQUIRED

Battelle has announced that SDL, Inc. of San Jose, California, has signed an agreement to acquire Photonic Integration Research, Inc. (PIRI) of Columbus, Ohio. PIRI was founded in 1987 as a joint venture of Battelle, NTT, Mitsubishi, and Mitsubishi International.

For its share of PIRI, Battelle expects to receive SDL stock worth $148 million. When completed in June, this will represent the largest single sale transaction in Battelle's 70-year history. The total purchase price for PIRI will be $1.8 billion.

From its early incubation at Battelle's facilities in Columbus, PIRI has grown to become a leading provider of optical networking equipment that is important in satisfying the ever-increasing demand for enhanced volume and speed in fiberoptic telecommunication networks.

"We are delighted by PIRI's success," said Douglas E. Olesen, Battelle President and CEO. "Battelle's strategy depends on creating and moving technology-based products into the marketplace, sharing in the financial successes of these ventures, and reinvesting our earnings in the next cycle of breakthrough technologies. This will ensure a bright future for Battelle as a leader in science and technology, and will help us meet our mission of serving the needs of the communities in which we do business."

"The value we have helped create at PIRI is a great example of the impact Battelle can have in the commercialization of technologies and the development of new business ventures," adds Olesen.

Battelle, headquartered in Columbus, develops and commercializes technology for a wide range of industrial and government customers. It has operations in over 60 locations throughout the world. Additional commercial ventures recently launched by Battelle include Battelle Pulmonary Therapeutics (pulmonary drug delivery), Vitex (barrier layers for flexible displays and semiconductors), and OmniViz (software for bioinformatics and other applications).

For more information on Battelle and its technology forecasts, visit Battelle's web site at www.battelle.org, or contact Katy Delaney, Media Relations manager, (614) 424-5544.