The new technology emerging from the opto-electronics laboratories will enable the mass production of low- cost optical devices for new communications networks.

Headed up by Dr Richard Laming, research undertaken at the university has been crucial in the development on this technology.

Dr Laming and his commercial partner Brendan Hyland, worked with the trading arm of the university, Southampton Innovations, and solicitors Moore & Blatch to set up a spin-out company which is now working towards setting up the first independent European manufacturing facility for optical chip technology.

Southampton Innovation's Roger Ashby said: "The impact of the all optical network will be enormous.

"It will affect all telecommunications right down to domestic services such as televisions and telephones. It goes without saying that it is a huge accolade to the university that is at the cutting edge in this area.''

The spin-ff company Kymata is now based in Scotland where it benefits from a skilled workforce and proximity to Glasgow University as well as access to various European development grants.

According to Leanne Prowse of Moore and Blatch, the benefits to Southampton University will continue for years to come.

"The university will continue to profit from the technology along with the directors of Kymata and other interested parties.

"Not surprisingly however, ensuring that all of the parties involved received a fair share of the benefits - immediately and in the future - was a complicated legal process," she aid.

"We had to put in place watertight legal agreements to protect the intellectual rights of each party without hindering the commercial exploitation of the technology.

"Southampton is a renowned centre of excellence for research and development. The university's forward-looking approach to technology transfer management means that increasingly research undertaken at the university will be put to commercial use.

"This is good news for the university and great news for business.''

Converted for the new archive on 25 January 2001. Some images and formatting may have been lost in the conversion.