Within the research project FEMTO, supported by the European Commission, a compact diode-pumped titanium:sapphire laser has been developed which matches the requirements of industrial systems, like compact dimensions and stable laser operation. To achieve this, the laser has been specially designed to be integrated directly into the machining system. For best process speed combined with optimal cutting quality, focus has been laid upon high repetition rates at moderate pulse energies. Typical average output powers are around 1.5W and repetition rates of up to 5 kHz. Accompanying to the laser development, a micro-machining system has been designed to meet the requirements of femtosecond laser micro-machining. In parallel to the machine development, machining processes have been investigated and optimized for different applications. The machining of delicate medical implants has been demonstrated as well as the machining system for general micro-machining of sensitive and delicate materials has been proven. Therefore, the developed machine offers the potential to boost the use of femtosecond lasers in industrial operation.© (2002) COPYRIGHT SPIE--The International Society for Optical Engineering. Downloading of the abstract is permitted for personal use only.