Photonic Products Ltd Awarded Single Largest Contract to Date

Electro-Optical Subassembly Machining and Manufacturing

Salem, N. H. - September 10, 2007 - StockerYale, Inc., (NASDAQ: STKR), a leading designer and manufacturer of structured light lasers, LED modules and speciality optical fibres for industry leading OEMs, today announced that its UK subsidiary, Photonic Products Ltd, has been awarded the largest single contract in its history. Under this custom laser assembly contract with one of the World's leading manufacturers of point-of-sale (POS) systems, Photonic Products will supply over 100,000 laser assemblies for an innovative next generation bi-optic POS bar code scanner system. Photonic Products commenced development of custom lasers for this system in late 2006 and begins ramping up production this quarter.

"We are pleased to be involved in the development of the World's most advanced bar code scanner," said Mark W. Blodgett, Chairman and Chief Executive Officer of StockerYale, Inc. "This order is a strong endorsement of our leading design capabilities and Photonic Products has worked diligently to meet highly complex technical specifications and ramp up production quickly and efficiently."

In order to meet the stringent requirements for this scanner system, Photonic Products designed a high specification, custom laser assembly according to an accelerated production schedule. Photonic Products has developed sophisticated processes for custom designed and high volume electro-optical component and subassembly manufacturing, facilitating quality prototype or small batch production through to high volumes. The production processes are led by a skilled team of engineers, all highly qualified in the machining of difficult components and backed by comprehensive technical support.

Damon Cookman, Managing Director of Photonic Products, stated, "We have invested significantly in creating a top quality, cost-effective service utilising the very latest multi-axis machining technology. Our ability to produce highly complex components in one single operation enables us to provide our customers with a rapid turnaround from prototype to production."

About StockerYale

StockerYale, Inc., headquartered in Salem, New Hampshire, is an independent designer and manufacturer of structured light lasers, LED modules, and speciality optical fibres for industry leading OEMs. In addition, the company manufactures fluorescent lighting products and phase masks. The Company serves a wide range of markets including the machine vision, industrial inspection, defence, telecommunication, sensors, and medical markets. StockerYale has offices and subsidiaries in the U.S., Canada, and Europe. For more information about StockerYale and their innovative products, visit the Company's web site at www.stockeryale.com.

About Photonic Products Ltd

Photonic Products is a UK based, ISO9001:2000 certified manufacturer of custom designed laser diode modules and laser assemblies and an authorised distributor of high performance industrial laser diodes and LEDs, manufactured by Sanyo, Opnext, (formerly Hitachi), and Sony, and precision optical lenses from Panasonic to the industrial, medical, scientific and defence markets.

Photonic Products was established in 1995 and has operations in the United Kingdom, the United States and Germany.

The company has twice been honoured with a Queen's Award for Enterprise: International Trade.

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