October 6, 2008

Dear Customers, Suppliers and Friends:

It's with great excitement that I announce that we've signed an Agreement to be acquired by Sofradir France. Sofradir is a world leader in the design and manufacture of cooled infrared detectors used for military, space and industrial applications. Among other things, Sofradir specializes in sophisticated high performance mercury cadmium telluride (MCT) technology in the form of both scanning and staring arrays covering the entire infrared spectrum.

The acquisition is a terrific opportunity for Electrophysics to continue to grow as a designer and manufacturer of infrared equipment and night vision systems for a wide range of applications. We are also very pleased to begin to promote Sofradir’s cooled detectors in North America as well as the uncooled microbolometers designed and manufactured by Sofradir's subsidiary, ULIS.

Electrophysics will also begin developing derivative products based on these detectors for OEMs and systems integrators. Sofradir and ULIS have a very exciting development roadmap and an established history of delivering high quality infrared detectors to the market. We intend to build on the foundation of our existing products, including AstroScope® and HotShot®, while continuing to expand the breadth of our product line.

Personally, I'm excited by our new alliance with Sofradir. When my father started Electrophysics in 1969, he had high aspirations to design a variety of products that would make a significant and positive impact. I'm proud that because of our highly competent staff, we’ve had great success in achieving that goal and look forward to continued success in the future.

Thank you for your continued support.

Sincerely,

Frank Vallese, Sc.D.
President
Electrophysics Corp.