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11/14/12

Ceres Provides Corporate Development Services to GSI Group on Divestiture of Control Laser and Baublys to Han’s Laser

Needham, Massachusetts - November 14, 2012 
Ceres Technology Advisors is pleased to announce that it provided business development services to GSI Group Inc. (GSI) on the divestiture of its Laser Systems business to Han’s Laser Technology Co., Ltd. (Han's Laser).

The Business and Markets
The Laser Systems business sold under the Control Laser and Baublys brand names supplies laser and mechanical material processing systems for marking, engraving, and micromachining to manufacturers of medical devices, automotive parts, microelectronics, minted currency, and other industrial and consumer goods.

Control Laser and Baublys

Manufacturing, R&D, sales, and service operations are located in Orlando, Florida and Ludwigsburg, Germany with satellite sales and service offices in Malaysia and Japan.

The business serves the highly fragmented and consolidating $1.3 billion laser marking and engraving systems market - as well as a small, but growing subset of the $700 million laser microprocessing systems market.  Low cost of ownership, process know-how, reliability, ease-of-use, and regional service differentiate dozens of competitors and capture market share.

Control Laser and Baublys

The Strategic Fit
"The acquisition of Control Laser and Baublys by Han’s Laser has significant strategic implications for both parties," says Linda Smith of Ceres.

"GSI achieved a major milestone in its restructuring program by divesting its Laser Systems business, enabling a sharper focus on its core precision components businesses. Whereas, Han’s gained geographic access to formerly untapped US and European markets via two premium brands, a large installed base, local sales and service, and a highly skilled workforce with technical expertise crossing material science, optics, automation, software, and systems integration."

The Process
Ceres worked closely with GSI to position the business for sale to a strategic buyer and consumed a minimum of GSI’s internal resources by leveraging hands-on management experience across corporate functional areas.

"From a broad network and intimate knowledge of the industry, Ceres readily identified excellent strategic fits for the business and was instrumental in executing a straightforward transaction with Han’s Laser,” says Marc-Antoine Henroz, Senior Director of Corporate Finance for GSI.

"From the buy side, it was a refreshing experience working with Ceres. Linda, with her own 20+ years of experience in the photonics industry, knows the laser business very well and was very goal-oriented and communicative,” says Dr. Qitao Lue, Vice President and Chief Technology Officer for Han’s Laser. "This is an important acquisition for us, as we continue to broaden our customized laser-based systems offerings and to expand our geographical presence in Europe and US. Both Baublys and Control Laser will operate as stand-alone companies, with focus on each regional market. We are confident that the talents and skills of both companies will contribute to the future success of our group."

About GSI Group Inc.
GSI Group Inc. designs, develops, manufactures and sells laser-based solutions, optical control devices and associated precision motion technologies to electronics, industrial, medical, and scientific markets. GSI Group Inc.’s common shares are quoted on NASDAQ (GSIG).  gsig.com

About Han’s Laser Technology Co., Ltd. 
Han's Laser Technology Co., Ltd. manufactures and supplies laser material processing equipment in the People’s Republic of China and internationally. With annual sales of approximately $650 million, the company’s products include laser markers, cutters, welders, and engravers used in consumer electronics, packaging, automotive, textile, semiconductor, and solar energy industries. The company was founded in 1996 and is headquartered in Shenzhen, China. hanslaser.net

About Ceres Technology Advisors
Ceres Technology Advisors is a corporate finance consulting firm that focuses on developing profitable relationships between buyers, sellers and investors around photonics technologies. Its value to clients is the breadth and depth of its network and knowledge of markets enabled by photonics. With hands-on experience planning and managing at both strategic and operational levels, Ceres delivers exit planning that both captures the value of the technology business and is practically executed and financed.  cerescom.net

For more information, please contact Ceres Technology Advisors:

Linda Smith
(781) 453-1906
LindaSmith@cerescom.net