QPC Awarded Follow-on Contract for High-Precision Industrial Lasers

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SYLMAR, CA, June 4, 2007 – QPC Lasers, Inc.  (OTCBB: QPCI) today announced that it has been awarded a follow-on contract to deliver high-performance production prototype lasers to a European customer for high-precision industrial measurement applications.  This contract brings the customer’s total orders for this product to more than $500,000 in the past 12 months and signals the transition from development phase to early stage production.

High-precision measurement, motion control, and positioning with lasers are critically important in the defense, homeland security, and industrial markets where the measurement of distance, temperature, and pressure are required. 

“QPC’s proprietary Internal Grating technology offers state of the art performance from a substantially more lightweight, compact and cost effective laser solution compared with the traditional multi-stage gas, solid state, or fiber lasers currently on the market,” said Paul Rudy, Ph.D., QPC’s vice president of marketing and sales. “We are pleased to win this follow-on contract to deploy our Internal Grating technology into industrial products, and we are confident in our capabilities to continue to commercialize our technology and expand our business into other industrial and defense applications where precise tolerances and absolute accuracy are critical.”

To be suitable for high-precision metrology, QPC’s Internal Grating-based lasers emit light with an extremely accurate spectrum. The potential benefits to laser metrology include:

• Increased precision, uptime, and yields in the semiconductor and pharmaceuticals industry through high precision thickness/position monitoring
• Increased reservoir output in the oil, gas, and energy markets through constant monitoring of oil/gas pipelines and power lines
• Increased precision, increased range, and real-time threat identification with accurate range finding on the battlefield, opto-acoustic sensors in submarine towed arrays, and monitoring and security of defensive perimeters

Forward Looking Statements
This release and other materials released by the Company from time to time contain or may contain forward looking statements and information that are based upon beliefs of, and information currently available to, the Company's management as well as estimates and assumptions made by the Company's management. When used in the materials the words "anticipate", "believe", "estimate", "expect", "future", "intend", "plan" or the negative of these terms and similar expressions as they relate to the Company or the Company's management identify forward looking statements. Such statements reflect the current view of the Company with respect to future events and are subject to risks, uncertainties, assumptions and other factors (including the risks contained in the sections of the Company's reports filed with the Securities and Exchange Commission entitled "Risk Factors") relating to the Company's industry, the Company's operations and results of operations and any businesses that may be acquired by the Company. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended or planned. Although the Company believes that the expectations reflected in the forward looking statements are reasonable, the Company cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results. The following discussion should be read in conjunction with the Company's reports filed with the Securities and Exchange Commission.

About QPC Lasers, Inc.
QPC Lasers, Inc. (www.QPClasers.com) is a world leader in the development and commercialization of high-brightness, high-power semiconductor lasers for the defense, homeland security, industrial, and medical markets. Founded in the year 2000, QPC is vertically integrated from epitaxy through packaging and performs all critical fabrication processes at its state-of-the-art high-technology facility in the Los Angeles suburb of Sylmar, CA. QPC is a publicly traded U.S. company (OTCBB: QPCI) and is ISO certified.

Contact QPC Lasers, Inc.
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info@QPClasers.com
www.QPClasers.com
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