August 14, 2006 Wilmington, DE -- PSI-TEC Corp., a wholly owned subsidiary of PSI-TEC Holdings, Inc., has established a co-location agreement with a New Jersey-based micro-optics company. The agreement enables PSI-TEC scientists to establish a pre-production line in order to test and integrate the company's organic materials into waveguide devices and system prototypes as a first step toward product commercialization. PSI-TEC is developing high-activity, high-stability electro-optic polymers for application in the electro-optic device market.

The agreement affords the company access to a full suite of fabrication facilities capable of producing commercial quantities of precision micro-optic devices such as high-speed (40-GHz) telecom modulators, optical filters, and optical interconnects for the military and civilian global information movement and management markets.