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A laser structure was fabricated using two-step liquid-phase epitaxy, employing the melt-back technique. The fabrication and properties of this structure are described in detail. Good linearity of the power output up to power levels of 20 mW was obtained. The threshold current density at 300 K is 9-12 kA/cm2. This high value is mainly due to Zn-diffusion from the third to the buffer layer during the second growth step of the fabrication process. The external differential quantum efficiency is 30-35 percent under pulsed operation at 25°C. The pulsed threshold current has an exponential behavior with temperature where C. The far-field beam divergences in the directions parallel and perpendicular to the junction plane are and , respectively. Transverse mode stabilization was improved with this laser structure.