Lumera Develops Unprecedented Electro-Optic Polymer; New Materials That Have Five Times the Efficiencies of Inorganic Materials Used to Fabricate Optical Devices - Nanotechnology Allows Lumera to Manufacture Improved Materials at the

Molecular Level -

    BOTHELL, Wash., Sept. 2 /PRNewswire-FirstCall/ -- Lumera Corporation,
 (Nasdaq:   LMRA), announced today it has developed a revolutionary electro-optic
 polymer -- a molecularly engineered material -- that has unprecedented
 efficiency for advanced, high performance materials.
     The efficiency of the new polymers is about five times that of the
 inorganic material currently used to fabricate active optical devices and is
 expected to dramatically improve optical equipment serving industries ranging
 from telecommunications to high speed computers.
     "We believe this nanotechnological breakthrough, particularly as it
 relates to the materials developed by Lumera, could have a significant impact
 on the development of the optical equipment and optical interconnect markets,"
 said Thomas D. Mino, chief executive officer.  "Lumera has attracted and
 partnered with the best researchers in the industry and we continue to expect
 great science to result in commercial products that will transform
     The electro-optic polymer breakthrough resulted from a partnership between
 Lumera and the University of Washington.  University of Washington professors,
 Larry Dalton and Alex Jen, have used "nano-tailoring" to increase electro-
 optic activity that produces substantially more efficiency than that of
 existing materials.
     For their part of the partnership, Lumera's team of scientists adapted
 internally developed materials to achieve electro-optic coefficients of 160
 pm/V at telecom operating wavelengths, a number that is approximately 20
 percent higher than existing materials.
     "As we transition to these nano-engineered materials, their outstanding
 performance will allow a greater number of options in device design,"
 continued Mino.  "For example, we can drive down the operating voltage,
 increase the bandwidth, decrease the size and reduce the cost of optical
 modulators and optical interconnects.  Additionally, polymers can be processed
 into device architectures such as Mach-Zehnder interferometers, directional
 couplers, and micro-ring resonators. The relative ease and precision with
 which these different devices can be fabricated is the significant advantage
 of polymer materials."
     Lumera is using the technology and materials to develop a number of new
 products that will allow the company to expand in, or enter new markets.  For
 example, the company is developing modulators that have highly linear
 responses for cable TV (CATV) optical links and hybrid wireless/fiber optic
 networks.  Additionally, external modulators that can operate at 10-40 GHz in
 metro applications, transponders, and long-haul fiber optic network build-outs
 are being evaluated by potential customers.  All have broad potential in
 markets that are gaining momentum in North America, Europe, and Asia.  The
 markets for these various products are forecasted to be greater than
 $5 billion by 2007.
      Lumera has recently received orders for the advanced materials and
 engineering samples of devices from select large telecommunication and
 semi-conductor companies.
     About Lumera
     Lumera is an emerging leader in the field of nanotechnology. The company
 designs proprietary molecular structures and polymer compounds for a broad
 range of electro-optic, RF and specialty coating applications.  The company
 also has developed proprietary processes for fabricating such devices. For
 more information, please visit


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