Excel Technology, Inc. was organized under the laws of Delaware in 1985. The Company designs, develops, manufactures and markets laser systems and electro-optical components for research and industry. The word laser is an acronym for “Light Amplification by Stimulated Emission of Radiation.” The essence of the laser is the ability of a photon (light energy) to stimulate the emission of other photons, each having the same wavelength (color) and direction of travel. The laser beam is so concentrated and powerful that it can produce power densities millions of times more intense than that found on the surface of the sun and is capable of cutting, welding and marking metals, yet it can be precisely controlled and directed and is capable of performing delicate surgery on humans.

In October 1992, the Company acquired Quantronix Corporation. The acquisition of Quantronix and its then wholly-owned subsidiaries, Control Laser Corporation, located in Orlando, Florida, Excel Technology Europe GmbH (previously named Quantronix GmbH), located in Germany, and The Optical Corporation, located in Oxnard, California, provided the Company with its industrial, scientific and semiconductor product lines and provided the Company with a significant revenue base as well as established manufacturing, engineering, marketing and customer service capabilities.

In February 1995, the Company acquired Cambridge Technology, Inc., located in Cambridge, Massachusetts. Cambridge is engaged primarily in the manufacture of laser scanners, essential components for moving a laser beam with precision at a specified speed. These products have both industrial and consumer applications, such as laser marking and etching, high-density laser printing and writing, digitized x-ray imaging and entertainment laser light shows and displays. The acquisition allowed the Company to expand into new markets and enhanced its market position in the industrial business.

In October 1995, the Company acquired the Photo Research Division of Kollmorgen Instruments Corporation. Photo Research is engaged primarily in the business of developing, manufacturing and marketing photometric and spectroradiometer instruments and systems.

In August 1998, the Company acquired substantially all of the assets and properties of Synrad, Inc., a company engaged in the business of developing, manufacturing and marketing sealed CO2 lasers and related accessories.

In April 1999, the Company formed Excel Technology Asia Sdn. Bhd. Excel Asia primarily engages in the business of marketing, selling, distributing, integrating and servicing Control Laser and Quantronix products throughout Southeast Asia.

In July 2000, Excel Europe, a subsidiary of the Company, acquired substantially all of the assets and assumed certain liabilities of Baublys GmbH, a company located in Ludwigsburg, Germany and engaged in the manufacturing and sale of customized laser systems and engraving machines.

In January 2001, the Company formed Control Systemation, Inc. which focuses on turn-key laser based micro-machining systems and part handling workstations for factory automation. CSI operates as an independent, wholly-owned subsidiary of the Company and is headquartered in new facilities in Orlando, Florida.

In January 2002, the Company consolidated the product lines and development efforts of Baublys and Control Laser to eliminate redundant products and efforts, to increase efficiencies, and to create a unified market presence for the Company’s marking operations. While the subsidiaries remain legally separate entities, with separate profit and loss responsibility, assembly, operations and selling and marketing efforts, they will operate under one name, “Baublys-Control Laser,” as though they were one entity with fully staffed operations in Florida and Germany.

On August 31, 2002, the Company, through a newly formed wholly-owned subsidiary, Excel Technology Japan Holding Co., Ltd., acquired all of the issued and outstanding shares of OptoFocus Corporation, a distribution organization representing the Company’s Quantronix product line in Japan.

On October 1, 2002, the Company, through a newly formed wholly-owned subsidiary, Continuum Electro-Optics, Inc., acquired substantially all of the assets and properties of Hoya Photonics, Inc. d/b/a Continuum, and Hoya Photonics’ wholly-owned subsidiaries, Continuum Electro-Optics GmbH, Continuum France EURL and Hoya Continuum Corporation, relating to the business of developing, manufacturing and marketing pulsed lasers and related accessories for the scientific and commercial marketplaces. Prior to this acquisition, the Company had not participated in the high-energy pulsed laser market. The Company believes that the purchase of Continuum provides the Company with a foundation upon which to build. It is anticipated that the addition of this technology, coupled with its tenability will significantly increase the Company’s ability to provide broad based, cost effective solutions for customers in the industrial and scientific markets. In addition, Quantronix and CSI are expected to contribute to and benefit from Continuum’s technology. The acquisition also expands the Company’s global presence as it has locations in the United States, Japan, Germany and France.