We investigate the temperature-dependent optical conductivity of alpha
'-NaV2O5 in the energy range 4 meV-4 eV. The intensities and the polar
ization dependence of the detected electronic excitations give a direc
t indication for a broken-parity electronic ground state and for a non
centrosymmetric crystal structure of the system in the high-temperatur
e phase. A direct two-magnon optical absorption process, proposed here
, is in quantitative agreement with the optical data. By analyzing the
optically allowed phonons at various temperatures above and below the
phase transition, we conclude that a second-order change to a larger
unit cell takes place below 34 K.