EXHIBIT (a)(1)(B)
                                [AXT Letterhead]

Contact:                                                 NEWS RELEASE

                                                         FOR IMMEDIATE RELEASE

                  AXT ANNOUNCES VOLUNTARY STOCK OPTION EXCHANGE

FREMONT, Calif. - (INTERNET WIRE) - May 27, 2003 - AXT, Inc. (Nasdaq: AXTI),
today announced that its Board of Directors has approved a voluntary stock
option exchange program for eligible option holders.

Under the program, eligible AXT option holders who elect to participate will
have the opportunity to tender for cancellation outstanding options in exchange
for new options to be granted on a future date that is at least six months and
one day after the date of cancellation. Members of AXT's Board of Directors and
executive officers of AXT are not eligible to participate in the program.

For each option for four shares tendered for cancellation, a new option for
three shares will be granted to employees who elect to participate in the option
exchange program, rounded down to the nearest full share. The new options will
have an exercise price equal to the fair market value of our common stock on the
new grant date. The new options granted will preserve the vesting schedule and
the vesting commencement date of the option it replaces. AXT expects that there
will be no accounting charges as a result of this stock option exchange program.

If each outstanding eligible stock option is exchanged, AXT would expect to
grant replacement options in the future to purchase approximately 1,145,913
shares of our common stock.

ABOUT AXT

AXT designs, develops, manufactures and markets high-performance compound
semiconductor substrates for the fiber optics and communications industries. The
Company's proprietary Vertical Gradient freeze (VGF) crystal growth technology
produces low-defect, semi-insulating and semi-conducting gallium arsenide,
indium phosphide and germanium wafers. AXT is also a leading producer of
light-emitting diodes (LEDs), such as blue, green, and cyan LEDs for the display
and lighting industries and edge-emitting and vertical-cavity surface-emitting
lasers (VCSELs) for the fiber optics industry. For more information, see AXT's
website at http://www.axt.com. The Company can also be reached at 4281
Technology Drive, Fremont, California 94538 or by calling 510-683-5900. AXT is
traded on the Nasdaq National Market under the symbol AXTI.

SAFE HARBOR UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACTS OF 1995

The statements contained in this press release that are not purely historical
are forward-looking statements within the meaning of Section 21E of the
Securities and Exchange Act of 1934, as amended, including statements regarding
AXT's expectations, beliefs, intentions, or strategies regarding the future. All
forward-looking statements included in this press release are based upon
information available to AXT as of the date hereof, and AXT assumes no
obligation to update any such forward-looking statements. Forward-looking
statements involve risks and uncertainties, which could cause actual results to
differ materially from those projected. These risks include those associated
with the rapidly evolving markets for AXT's products and uncertainty regarding
the development of these markets; AXT's historical dependence on sales to a
limited number of customers and fluctuations in the mix of customers in any
period; ongoing new product development and introduction of new and enhanced
products; the



challenges of rapid growth followed by periods of contraction; intensive
competition; and potential problems related to the assimilation and integration
of the operations, technologies and products of a number of recently acquired
companies and product lines. Other risks relating to AXT's business are set
forth in AXT's Annual Report on Form 10-K and other interim reports as filed
with the Securities and Exchange Commission.

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