I asked on the hobbyist machining board on how to cut carbon fiber. This was the answer I got:
"Composites are very tough on bits. I would suggest a carbide diamond cut router bit, the type they make for circuit board work. If you are going to be cutting a lot of it then it would pay to get the ZrN coated bits. Take a loot at: http://www.soigeneris.com/precisebits_d ... tails.aspx (my web site). A good starting point is to feed 1IPM per thousand spindle RPM, for example 10,000 RPM spindle feed at 10IPM. A 1/16" bit can cut through 1/16" FR4 (fiberglass) in a single pass."
Maybe this will help.