Excel Technology Announces Results for Q2 2008

QUARTERLY RESULTS

Sales: $40.7 million for 2008 vs. $40.5 million for 2007 (0.4%
increase)

Net Income: $4.6 million for 2008 vs. $4.5 million for 2007 (2.1%
increase)

EPS: $0.42 for 2008 vs. $0.37 for 2007 per diluted share (13.5%
increase)
EAST SETAUKET, N.Y.--(Business Wire)--
Excel Technology, Inc. (NASDAQ: XLTC) today announced second
quarter results for the quarter ended June 27, 2008.

-- Sales: Excel reported revenues of $40.7 million for the
quarter ended June 27, 2008 compared to $40.5 million in sales
for the quarter ended June 29, 2007, an increase of 0.4% or
$0.2 million. Sales for the six months decreased 1.8% to $80.0
million for the six months ended June 27, 2008 as compared to
$81.5 million for the same period last year.

-- Pretax Income decreased 4.2% to $6.3 million for the second
quarter of 2008 as compared to $6.5 million for the same
period last year. Pretax income decreased 7.8% for the six
months ended June 27, 2008 to $11.9 million as compared to
$12.9 million for the same period last year.

-- Net Income increased 2.1% to $4.6 million for the second
quarter of this year as compared to $4.5 million in the same
period last year. For the six months ending June 27, 2008 net
income decreased 2.5% to $8.9 million as compared to $9.2
million for the same period last year.

-- EPS: Net income per share on a diluted basis increased 13.5%
to $0.42 for the quarter ended June 27, 2008 compared to the
$0.37 per share on a diluted basis reported for the quarter
ended June 29, 2007. EPS for the six months ending June 27,
2008 increased 8.1% to $0.80 per diluted share from $0.74 for
the same period last year.

Antoine Dominic, Chief Executive Officer stated, "Overall we had a
very good quarter in Revenues and Profit considering the current macro
economic condition. Our year-to-date bookings have increased 9.5% over
the same period last year, which is quite good. These increased
bookings are a direct result of increased new product offerings,
broadening our product portfolio and expanding our global presence. We
were unable to capitalize on our stock buy back program during the
quarter due to the on-going merger negotiations with GSI. We have a
healthy backlog going into the next quarter and we are optimistic in
achieving our objectives in 2008."

Alice Hughes Varisano, Chief Financial Officer, concluded, "Sales
increased 0.4% and decreased 1.8% for the quarter and six months ended
June 27, 2008 to $40.7 million from $40.5 million and to $80.0 million
from $81.5 million respectively. Bookings increased 26.6% and 9.5% for
the quarter and six months ended June 27, 2008 to $43.7 million from
$34.6 million and to $82.7 million from $75.5 million, respectively.
Operating income for the quarter ended June 27, 2008 increased 2.1% to
$5.8 million from $5.7 million. The Company's interest income
decreased 50.4% for the quarter ended June 27, 2008 to $418 thousand
from $843 thousand due to decreased interest rates and the cumulative
cash utilized for the stock buy back. The backlog increased 24.6% to
$37.4 million as compared to $30.0 million for the second quarter of
2007."

This news release contains forward-looking statements, which are
based on current expectations. Actual results could differ materially
from those discussed or implied in the forward-looking statements as a
result of various factors including future economic, competitive,
regulatory, and market conditions, future business decisions, market
acceptance of the Company's products, and those factors discussed in
the Company's Form 10-K for the year ended December 31, 2007. In light
of the significant uncertainties inherent in such forward-looking
statements, they should not be regarded as a representation that the
Company's objectives and plans will be achieved, and they should not
be relied upon by investors when making an investment decision. Words
such as "believes," "anticipates," "expects," "intends," "may," and
similar expressions are intended to identify forward-looking
statements, but are not the exclusive means of identifying such
statements.

Excel and its wholly owned subsidiaries manufacture and market
photonics-based solutions, consisting of laser systems and
electro-optical components, primarily for industrial and scientific
applications.

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FINANCIAL SUMMARY
(UNAUDITED AND IN THOUSANDS, EXCEPT PER SHARE DATA)

FOR THE QUARTER ENDED FOR THE SIX MONTHS ENDED
JUNE 27, JUNE 29, JUNE 27, JUNE 29,
2008 2007 2008 2007
---------- ---------- ----------- ------------
Net Sales & Services $ 40,705 $ 40,532 $ 80,039 $ 81,473
Cost of Sales and
Services $ 22,092 $ 22,470 $ 44,328 $ 45,570
-------- -------- --------- ----------
Gross Profit $ 18,613 $ 18,062 $ 35,711 $ 35,903
Operating Expenses:
Selling & Marketing $ 5,167 $ 4,619 $ 9,934 $ 8,946
General &
Administrative $ 3,823 $ 3,944 $ 7,497 $ 8,118
Research and
Development $ 3,787 $ 3,783 $ 7,673 $ 7,609
-------- -------- --------- ----------
Operating Income $ 5,836 $ 5,716 $ 10,607 11,230
Interest Income, net $ 418 $ 843 $ 1,051 $ 1,624
Other Income (Expense) $ 10 $ (18) $ 273 $ 80
-------- -------- --------- ----------
Pre-Tax Income $ 6,264 $ 6,541 $ 11,931 $ 12,934
Provision for Income
Taxes $ 1,655 $ 2,028 $ 2,995 $ 3,766
-------- -------- --------- ----------
Net Income $ 4,609 $ 4,513 $ 8,936 $ 9,168
======== ======== ========= ==========

Net Income Per Common
Share - Basic $ 0.42 $ 0.37 $ 0.82 $ 0.76

Weighted Average Common
Shares Outstanding -
Basic 10,859 12,063 10,934 12,085

Net Income Per Common
Share - Diluted $ 0.42 $ 0.37 $ 0.80 $ 0.74

Weighted Average Common
Shares Outstanding -
Diluted 11,031 12,352 11,125 12,380
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BALANCE SHEET & SELECTED FINANCIAL DATA

JUNE 27, 2008 DECEMBER 31, 2007
(unaudited) (audited)
------------- -----------------

Cash & Cash Equivalents $ 25,839 $ 9,981
Investments $ -- $ 47,550
Accounts Receivable, net $ 26,493 $ 24,008
Inventory $ 35,793 $ 33,792
Other Current Assets $ 3,841 $ 6,217
------------- -----------------
Total Current Assets $ 91,966 $ 121,548
Investments $ 29,602 $ --
Property, Plant & Equipment, net $ 24,116 $ 24,679
Other Non-Current Assets & Goodwill $ 34,707 $ 34,305
------------- -----------------
Total Assets $ 180,391 $ 180,532
============= =================

Accounts Payable $ 6,438 $ 5,090
Accrued Expenses and Other Current
Liabilities $ 11,155 $ 8,659
------------- -----------------
Total Current Liabilities $ 17,593 $ 13,749
Other Non-Current Liabilities $ 4,000 $ 5,068
Minority Interest in Subsidiary $ 150 $ 128
Stockholders' Equity $ 158,648 $ 161,587
------------- -----------------
Total Liabilities & Stockholders'
Equity $ 180,391 $ 180,532
============= =================
Working Capital $ 74,373 $ 107,799
*T

Excel Technology, Inc.
Alice Varisano, CFO
or
Investor Relations
631-784-6175

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