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Theoretical and experimental results on the reduction of the intensity noise in spectrum-sliced wavelength-division-multiplexing systems using a saturated semiconductor optical amplifier (SOA) are presented. The influence of the injected current and the input power to the saturated SOA on the noise reduction and its bandwidth are studied. The optimum condition for a high noise suppression ratio and a large bandwidth is derived. For the optimum operation of the SOA, an increase of 13.5 dB in the intensity-noise-limited signal-to-noise ratio for a bitrate of 2.488 Gb/s and of 17.5 dB for a bitrate of 622 Mb/s are obtained experimentally in a single-stage SOA.