Quantum Design Europe Merges with LOT-Oriel Holding AG

Shareholders and founders of LOT-Oriel Holding AG (LOT) have sold
a majority portion of their shares to the German company Quantum
Design Europe GmbH (QDE). QDE is a wholly-owned subsidiary of Quantum
Design, Inc. (QD), based in San Diego, Calif., U.S.

As a distributor and service provider for Quantum Design products
in Europe, QD and LOT have enjoyed a cooperative relationship for more
than 15 years. During this period, LOT´s relationship with QD has
grown from being a sales representative for Germany and Eastern Europe
to becoming QD´s exclusive sales, marketing and service partner for
all of Europe and the Near East. In 2004, LOT and QD signed a
strategic alliance agreement to form a worldwide distribution
partnership. With the QD-LOT merger, LOT will combine with QD and its
Asian subsidiaries in Japan, Korea and the People´s Republic China to
create a global network offering distribution and after-sales service
to manufacturers of scientific and related industrial instrumentation
all over the world.

Original LOT shareholders Arno Kohler, managing director of
ZygoLOT GmbH; Manfred Berger, managing director of II-VI Holding GmbH;
and Ralph Kohler, managing director of LOT-Oriel Europe and QDE,
continue to hold significant interests in LOT, and Ralph Kohler will
continue to serve as the company´s managing director.

Both LOT and QD expect that LOT and all of its European offices
will continue to serve its customers and suppliers in the same
successful and reliable way that has established LOT as Europe´s
premier distributor of instruments and products.

About Quantum Design

Founded in 1982, Quantum Design is a privately held corporation
that develops and markets advanced technology cryogenic systems and
instruments for the scientific community. Quantum Design is widely
recognized as the leading commercial source for integrated laboratory
analytical systems incorporating superconducting technology.

About LOT-Oriel

Headquartered in Darmstadt, Germany, LOT was founded more than
35 years ago as a distribution and technical support organization for
scientific research institutes and industry. Today, LOT employs
120 people in 10 countries across Europe and its product portfolio
includes leading edge components and instrumentation with applications
in materials characterization, thin film analysis, special cameras and
imaging, spectroscopy, photonics and bio- and nanotechnology.