Sumitomo Electric Reaches Milestone of 10 Million Laser Diodes Shipped

Sumitomo Electric Industries, Ltd. (SEI) (TOKYO:5802)
(ISIN:JP3407400005) today announced it has now shipped more than 10
million semiconductor laser diodes (LD) for the optical fiber
communication applications since its first shipment in 1991. SEI
manufactures high-performance distributed-feedback (DFB) and
Fabry-Perot LDs for use in advanced optical communications.
Applications include metropolitan access networks, fiber to the home,
local and storage area networks, cable television, and point-to-point
cellular networks.

"Reaching this milestone demonstrates the confidence that
customers have in our performance, reliability, and ability to meet
the evolving demands of the market," said Ichiro Kono, General Manager
of SEI's Optical Transmission Component Division. "Despite the
upheavals and turmoil in the optical component market over the past
decade, we have consistently and reliably supplied leading-edge
optical technology worldwide."

The growing SEI laser portfolio includes wafers, chips, packaged
devices, and transmitters and transceivers. The DFB-LDs offer
low-voltage and high-efficiency operation across the spectrum from
1200 nm to 1600 nm. DFB-LD shipments alone are expected to pass five
million by May 2007. The Fabry-Perot LDs are the foundation of lower
cost transmission applications that do not require the performance of
the higher-end DFB LDs.

SEI produces the laser diodes in Japan and China. With ISO
9001-certified facilities and a global reputation for quality, SEI is
known for producing highly reliable products, with an enviable
industry-leading LD device failure rate of only 0.02 FIT in 10 billion
hours.

About Sumitomo Electric Industries, Ltd.

Sumitomo Electric Industries, Ltd. (SEI) designs, manufactures and
sells optical fiber, cable and components, advanced electronic
devices, and automotive parts. Through a successful strategy of
research and diversification, SEI has become one of the world's
leading companies at the forefront of the revolution in information
and communications. The company has operations around the world in
more than 30 countries and employs 130,000 people. SEI reported group
net sales of $17 billion for the year ended March 2006. www.sei.co.jp