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Coherent Sets Future Financial Target
Date:9/27/2007

tions. There can be no assurance that the Company will engage in such accretive acquisitions or a share repurchase program.

The Company's statement regarding its adjusted EBITDA percentage target is a non-GAAP financial measure. The most comparable GAAP measurement is net income, which is not currently accessible on a forward-looking basis. Adjusted EBITDA reflects earnings before interest, taxes, depreciation, amortization, stock compensation expenses and other non-operating income and expense items. These items, which are required to determine GAAP net income, are subject to significant change by the end of fiscal 2010, given the impact of potential acquisitions, tax rate changes and other operational factors which will heavily impact these items and are also impacted by the Company's historical stock option investigation and the effect of any compensation charges arising from future equity grants.

About Coherent

Founded in 1966, Coherent, Inc. is a Standard & Poor's SmallCap 600 company and a world leader in providing photonics based solutions to the commercial and scientific research markets. For more information about Coherent, visit the Company's Web site at http://www.coherent.com/ for product and financial updates.

Forward-Looking Statements

This press release contains forward-looking statements, as defined under the Federal securities laws. These forward-looking statements include the statements in this press release that relate to adjusted EBITDA percentage targets and the actions to be taken to achieve such adjusted EBITDA percentage targets, the delivery of higher returns to shareholders, opportunities to improve gross margins, engaging in accretive acquisitions, the enactment of a share repurchase program and the enhancement of the value delivered to customers. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties an
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SOURCE Coherent, Inc.
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