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A new, simple structure for a stripe-geometry laser is proposed. A double heterostructure is fabricated on a terraced substrate, providing a modified rib-waveguide structure in the active layer. A lasing mode is confined and stabilized in the narrow area between two adjacent bends of the active layer. The terraced substrate laser exhibits a stable, single longitudinal mode oscillation as well as a fundamental transverse mode oscillation in CW operation. No kinks have been observed in light-output versus current characteristics. The linearity continues up to ten times the threshold in the pulsed operation at which the power output is 150 mW per facet.