- Company Provides Further Comments on China's Export Restrictions on Germanium and Gallium -

ORLANDO, FL / ACCESSWIRE / July 18, 2023 / LightPath Technologies, Inc. (NASDAQ:LPTH), ("LightPath" or the "Company"), a leading vertically integrated global manufacturer and integrator of proprietary optical and infrared technologies, provided an update on the impact of China's recently announced restrictions on the export of gallium and germanium.

"Germanium is the dominant material used in lenses for infrared imaging systems and China is the world's largest supplier. China's recent announcement limiting the export of Gallium and Germanium is one that we have anticipated and prepared for. LightPath's family of chalcogenide glasses (branded as Black Diamond "BD") are the leading alternative for germanium, and we are happy to help any potential customer that would look to transition away from using Germanium," stated Sam Rubin, Chief Executive Officer of LightPath Technologies.

"Previously, our BD6 raw material would only be available in the form of finished optical lenses or integrated into our customized solutions. However, the time it takes to produce prototypes for new optical designs is one of the challenges to making a change. To aid the transition of the market from Germanium into these materials, we will make our most popular glass, BD6, available for purchase as raw material. We believe that doing so will help accelerate the transition away from Germanium. We are also mindful that export restrictions could have a short term adverse effect on sales of our products that currently use Germanium.

"Our belief is that the industry needs to work together to resolve such critical supply chain challenges. Our recent expansion in Orlando has significantly increased our manufacturing footprint and prepared the infrastructure for further expansion of glass manufacturing and processing capacity.

"LightPath currently has capacity to produce up to 10 tons a year of BD6. According to different public estimates, the US defense market consumes between 50 to 150 tons of Germanium a year for the use in optics alone. Our team stands ready to work with our customers and the entire industry to deliver our part to strengthen supply chains and are ready to add capacity as needed."

Mr. Rubin continued: "The timing of the first phase completion of our manufacturing expansion aligns well with the increased demand we are experiencing in the US, particularly in support of the defense industry. We believe moving to the next phase of construction and facilities completion will allow LightPath to fully take advantage of the opportunities ahead. We anticipate completing construction during the second half of calendar year 2023."

As previously disclosed, the expansion of the Company's manufacturing facilities in Florida has been partially funded with a $2.4 million tenant improvement allowance from the landlord, with the balance, estimated to be $2.5 million, funded by LightPath. A portion of the funds from the equity offering in January 2023 were earmarked to complete the expansion. The expansion will facilitate increased production and shipping capacity to support larger orders in the Company's solutions and infrared imaging businesses.

About LightPath Technologies:
LightPath Technologies, Inc. is a leading global, vertically integrated provider of optics, photonics and infrared solutions for the industrial, commercial, defense, telecommunications, and medical industries. LightPath designs and manufactures proprietary optical and infrared components including molded glass aspheric lenses and assemblies, custom molded glass freeform lenses, infrared lenses and thermal imaging assemblies, fused fiber collimators, and proprietary Black Diamond^TM ("BD6") chalcogenide-based glass lenses. LightPath also offers custom optical assemblies, including full engineering design support. The Company is headquartered in Orlando, Florida, with manufacturing and sales offices in Latvia and China.

LightPath's wholly-owned subsidiary, ISP Optics Corporation, manufactures a full range of infrared products from high performance MWIR and LWIR lenses and lens assemblies. ISP's infrared lens assembly product line includes athermal lens systems used in cooled and un-cooled thermal imaging cameras. Manufacturing is performed in-house to provide precision optical components including spherical, aspherical and diffractive coated infrared lenses. ISP's optics processes allow it to manufacture its products from all important types of infrared materials and crystals. Manufacturing processes include CNC grinding and CNC polishing, diamond turning, continuous and conventional polishing, optical contacting and advanced coating technologies.

For more information on LightPath and its businesses, please visit www.lightpath.com.

Investor Contact:
Brian M. Prenoveau, CFA
MZ Group - MZ North America
LPTH@mzgroup.us
+561 489 5315

SOURCE: LightPath Technologies