FlashResults                              II-VI Incorporated IIVI                           (Numbers in Thousands, Except                                  Per Share Data)                   3rd quarter ended           3rd quarter ended                       3/31/2009       YTD         3/31/2008           YTD       Sales              $64,111     $226,155        $80,956        $224,382       Net Income          $4,810      $30,664        $13,048         $49,430       Average Shares      29,700       30,147         30,588          30,436       EPS                  $0.16        $1.02          $0.43           $1.62   

II-VI Incorporated today reported results for its third quarter ended March 31, 2009.

As previously announced, the Company intends on selling its x-ray and gamma-ray radiation sensor business, eV PRODUCTS, Inc., which operates as a business within the Compound Semiconductor Group. Results for all periods presented reflect the presentation of eV PRODUCTS as a discontinued operation.

Revenues from continuing operations for the quarter decreased 21% to $64,111,000 from $80,956,000 in the third quarter of last fiscal year. Revenues from continuing operations for the nine months ended March 31, 2009 increased 1% to $226,155,000 from $224,382,000 for the same period last fiscal year.

Bookings from continuing operations for the quarter decreased 34% to $62,252,000 compared to $93,735,000 in the third quarter of last fiscal year. Bookings from continuing operations for the nine months ended March 31, 2009 decreased 19% to $203,884,000 from $253,156,000 for the same period last fiscal year. Bookings from continuing operations are defined as customer orders received that are expected to be converted into revenues during the next 12 months.

Earnings from continuing operations for the quarter were $6,736,000 or $0.23 per share-diluted. These results compare with earnings from continuing operations of $13,353,000 or $0.44 per share-diluted in the third quarter of last fiscal year. For the nine months ended March 31, 2009, earnings from continuing operations were $32,593,000 or $1.08 per share-diluted. This compares with earnings from continuing operations of $50,342,000 or $1.65 per share-diluted for the same period in the last fiscal year, which included a $15,913,000 or $0.52 per share-diluted after-tax gain on the sale of an equity investment.

Francis J. Kramer, president and chief executive officer said, "Results for our third fiscal quarter ended March 31, 2009 reflect non-military customers' cautious behavior in the face of the severe downturn in the world's industrial economies. Quarterly bookings for the Infrared Optics segment, primarily used in manufacturing and other industrial laser applications, decreased 48% from the third quarter of last fiscal year and 33% from the second quarter of our current fiscal year. Aftermarket customers are purchasing fewer replacement optics because they have reduced production; companies are also delaying investments in new OEM equipment. We expect this decrease in demand to continue and now believe the Infrared Optics segment revenues will be lower in the fourth quarter than it was in the third. In response, we continue to cut costs to align them with lower demand; the workforce and overtime reductions initiated since November 2008 yielded an approximately $15 million reduction in annual labor and benefit costs."

Kramer continued, "In spite of these challenges, the II-VI balance sheet continues to strengthen; our cash balance is at the highest level in Company history. We are well suited to use our strong financial position for future growth, both organically and via acquisitions, with the later continuing to receive a high level of our attention. We are limiting capital spending until business conditions improve."

During the quarter ended March 31, 2009, the Company wrote off approximately $0.8 million pre-tax of certain long-lived assets of its UV Filter product line due to continued reduction in product demand; this amount was recorded as Cost of goods sold on the attached Condensed Consolidated Statements of Earnings for the three and nine-month periods ended March 31, 2009. UV Filters are a component of the Near-Infrared Optics business segment.

The Loss from Discontinued Operation, net of Income Taxes, in the attached Condensed Consolidated Statements of Earnings for the three and nine months ended March 31, 2009 includes an estimated loss on disposal of approximately $1.8 million after-tax. The main components of these estimated costs are employee retention costs, transaction costs and a write-down of net assets to their expected realizable value.

Segment Information from Continuing Operations ($000's)

The following segment information includes segment earnings from continuing operations (defined as earnings from continuing operations before income taxes, interest expense and other income or expense, net). Management believes segment earnings from continuing operations are a useful performance measure because they reflect the results of segment performance over which management has direct control.