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Tegal Receives Order for 6500 Series Platform From Leading North American Telecommunications Network Provider

Etch company continues to be the supplier of choice for advanced telecommunications applications

PETALUMA, CA. Tegal Corporation (NASDAQ NM: TGAL) today announced that a leading North American supplier of high-performance broadband networks has placed a follow-on order for a Tegal 6500 series etch system. The tool will be used for processing a variety of high performance "III-V materials," including gallium arsenide (GaAs) and indium phosphide (InP). III-V materials are used in the manufacture of HBT (heterojunction bipolar transistor) devices, which are commonly used in the burgeoning wireless telecommunications market. Scheduled to ship in the first half of 2000, the 6500 platform series will be used to support the company s development and production of circuits for high-speed broadband networks. Tegal 6500 etch systems typically sell for between $2 million and $3 million depending on the options chosen.

Current market trends within the communications industry have led analysts to speculate on the impact these telecommunications devices will have on chip demand. "The market for high-speed telecommunications devices is growing rapidly and is expected to equal the market for PC devices by 2004," commented Clark Fuhs, vice president and director for Dataquest s semiconductor manufacturing programs.

"This order from a leading network provider demonstrates Tegal s proven ability to deliver advanced etch systems capable of supporting emerging technologies. Our patented 6500 series system is repeatedly chosen by leading companies to provide superior etch technology," said Jim McKibben, vice president of worldwide marketing and sales. "Orders like this are confirmation that the telecommunications industry is making increasing demands on the high-speed chip market."

Semiconductor technology incorporating III-V materials has emerged in the last decade as a high-performance alternative to silicon technology in many radio frequency (RF) applications because the materials are capable of operating at much faster speeds than silicon. Tegal has over fifteen years experience etching these unique materials.

The integrated circuits (ICs) found in today s wireless devices are manufactured using lift-off techniques for the patterning of metal layers. This manufacturing trend is changing as telecommunications devices will require plasma etching of high performance metals such as gold and platinum to achieve higher device density. In addition, telecommunication devices soon may incorporate embedded non-volatile memory directly on the chips, which will add to battery life and improve system performance.

Tegal s versatile 6500 series system meets all of these challenges and is the system of choice by those companies that are fabricating ICs and related devices with these difficult-to-etch new materials.

About Tegal Corporation

Tegal Corporation, headquartered in Petaluma, Calif., is a leading designer and manufacturer of plasma etch systems used in the production of integrated circuits (ICs), and related microelectronics devices. Etching is a key process and must be repeated multiple times in the production of these devices. Tegal markets and services its systems in all major IC-producing regions of the world. More information is available on the Internet at www.tegal.com.

Safe Harbor Statement

Except for historical information, the matters discussed in this news release are forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties including, but not limited to industry conditions, economic conditions, non-acceptance of new technologies, the growth of the wireless market, as well as other risks set forth in the Company s periodic filings with the Securities and Exchange Commission.

Contact:
Tegal Corporation Jim McKibben, 707/763-5600
jmckibben@tegal.com
or
The Loomis Group, Inc. Gabrielle Svenning, 415/882-9494
gabrielle@loomisgroup.com

 

Tegal Corporation Jim McKibben, 707/763-5600
jmckibben@tegal.com
or
The Loomis Group, Inc. Gabrielle Svenning, 415/882-9494
gabrielle@loomisgroup.com
 
E-mail: gabrielle@loomisgroup.com
Web site: http://www.tegal.com
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