The influence of laser fluctuations on the optical excitation of Rydbe
rg and continuum states close to a photoionization threshold is invest
igated within the framework of the phase diffusion model. Theoretical
methods are developed for solving the relevant master equation of the
atomic density operator which is averaged over the laser fluctuations.
In the long-time limit this laser-induced excitation process exhibits
nonexponential decay. This nonexponential time dependence reflects th
e fluctuation-induced diffusion of the Rydberg electron toward the ion
ization threshold.