IPG Photonics’ Broadband Amplifiers Achieve RUS Acceptance

Oxford, MA, July 21, 2009 -- IPG Photonics Corporation, the global leader in high-power fiber
lasers and amplifiers, announced today that its EAR series of Erbium Fiber Amplifiers have been
accepted by the Rural Utilities Service (RUS) of the United States Department of Agriculture.
USDA RUS acceptance means that IPG’s cost-effective EAR Series of Erbium Fiber Amplifiers
can be purchased using RUS loans and grants.

RUS is responsible for disbursing $2.5 billion in economic stimulus spending allocated to
broadband funding initiatives under the American Recovery and Reinvestment Act of 2009
(ARRA). ARRA supports broadband initiatives that are intended to spur job growth and
accelerate broadband deployment in unserved and underserved rural communities across the
United States.

IPG’s EAR Series of Erbium Fiber Amplifiers are deployed extensively in fiber networks and
offer one of the highest power and port density combinations available to the telecommunications
industry. IPG’s innovative designs can provide 36 ports with over 4 watt total power in a 2 Rack
Unit (RU) (19”x12”x3.5”) chassis. Offered in both 1RU (1.75” height) and 2RU (3.5” height)
chassis, the Erbium Doped Fiber Amplifiers (EDFAs) provide the ideal building blocks for a
Fiber To The Premise (FTTP) or CATV network. These space-efficient amplifiers are available
from 1 to 36 multiple output configurations, with each port providing up to 22 dBm output power
at 1550 nm. Integrated Course Wave Division Multiplexing (CWDM) splitters are available
which eliminates the need for external splitter shelves. IPG recently announced a unique two-way
EDFA which optimizes two-way RF deployment over fiber networks, including Radio Frequency
over Glass (RFoG) networks.

“The RUS listing for IPG’s amplifiers gives telecom carriers and CATV operators an excellent
option for a domestic origin solution that realizes the objectives of the RUS’s Broadband
Initiatives Program (BIP): to support the deployment of broadband infrastructure in unserved and
underserved areas, and to encourage sustainable adoption of broadband service” said George
BuAbbud, Vice President, Telecommunications.

About IPG Photonics Corporation
IPG Photonics is the world leader in high-power fiber lasers and amplifiers. Founded in 1990,
IPG pioneered the development and commercialization of optical fiber-based lasers for use in a
wide range of applications such as materials processing, advanced, telecommunications and
medical ones. Fiber lasers have revolutionized the industry by delivering superior performance,
reliability and usability at a lower total cost of ownership compared with conventional lasers,
allowing end users to increase productivity and decrease operating costs. IPG has its headquarters
in Oxford, MA, and has additional plants and offices throughout the world. For more information,
please visit www.ipgphotonics.com.

Safe Harbor Statement
Information and statements provided by the Company and its employees, including statements in
this press release, that relate to future plans, events or performance are forward-looking
statements. These statements involve risks and uncertainties. Any statements in this press release
that are not statements of historical fact are forward-looking statements, including, but not limited
to, those relating to the purchase of IPG’s EDFAs with funds or grants from under ARRA from
the RUS. Factors that could cause actual results to differ materially include risks and
uncertainties, including risks associated with downturns in the markets we serve, uncertainties
and adverse changes in the general economic conditions of our markets, the Company's ability to
penetrate new applications, the rate of acceptance and penetration of IPG's products, effective
management of growth, level of fixed costs from its vertical integration, intellectual property
infringement claims and litigation, interruption in supply of key components, contract
cancellations, manufacturing risks, competitive factors including declining average selling prices,
building and expanding field service and support operations, uncertainties pertaining to customer
orders, demand for products and services, development of markets for the Company's products
and services and other risks identified in the Company's SEC filings. Readers are encouraged to
refer to the risk factors described in the Company's Annual Report on Form 10-K (filed with the
SEC on March 11, 2009) and its periodic reports filed with the SEC, as applicable. Actual results,
events and performance may differ materially. Readers are cautioned not to rely on the forwardlooking
statements, which speak only as of the date hereof. The Company undertakes no
obligation to update the forward-looking statements that may be made to reflect events or
circumstances after the date hereof or to reflect the occurrence of unanticipated events.