Q1'14

begin reduction from 200nm to 100nm

PDK prep, beginnings of San Jose presence and NASDAQ (SEC 20F filed)

re-worked UConn royalty deal from 30% to 3%

BAE validation (1st non-Lab 3rd-party fab)

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This one is a big one. In 2011, POET electrical side was validated by a third party fab ( p and n channel Complementary Heterostructure Field Effect Transistor Validation). In 2014 a third party fab validated the optical side (Optical Thyristor-based Infrared Detector Array Fabrication and Validation). That could be the cornerstone for POET to penetrate the commercial market, incorporating POET optical components with Si based IC's.

Dr. Deshmukh commented: “I see tremendous potential with POET Technology’s innovative approach to combining Si based IC’s with III-V materials based optical components on the same chip that could revolutionize the mobility, telecommunications/networking, large data management, and other technology sectors. I am very excited to be part of the team to drive this innovation into the market”.

The fabrication of infrared (IR) detectors, using its proprietary planar optoelectronic technology (POET) platformfor monolithic fabrication of integrated electronic and optical devices on a single semiconductor wafer. Adding to its significance is the fact that the POET wafer used for the IR devices were fabricated within an independentfoundry, BAE Systems’ Microelectronics Center in Nashua, New Hampshire. BAE Systems has producedcompound semiconductor devices based on gallium arsenide for more than 20 years for use in its defense, radar, and communications systems. This milestone, therefore,represents the integration by a third party of the optoelectronic process previously demonstrated in POET laboratories.