Press Release: March 22, 2000

WR Hambrecht + Co Initiates Coverage of SDL, Inc. (SDLI) with a Buy Rating and Target of $275

Company leads new frontier in communications

San Francisco, CA, March 22, 2000—WR Hambrecht + Co today initiated research coverage on SDL, Inc. (SDLI) with a buy rating and a price target of $275. WR Hambrecht + Co’s eNetwork Technologies analyst Jim Liang cited strong growth potential of the optical communications market and SDL’s leadership in active optical components as key reasons for the rating. WR Hambrecht + Co offers all its research reports free and real-time at www.wrhambrecht.com.

"We believe SDL’s leading technology in active components, along with its acquisition strategy to expand its technology base, could allow the Company to achieve strong revenue and earnings growth. This in turn, could drive continued appreciation for the shares," Liang said.

Liang projects SDL’s total revenues could reach $353 million in 2000 and $541 million in 2001, up from the 1999 total of $187 million.

SDL, Inc. is a leading provider of active optical components for the optical communications market.