A T M I Expands HBT Epi Capacity for Wireless Markets; Gallium Arsenide Epitaxy Expansion Supports Global Customer Base

DANBURY, Conn. and MESA, Ariz. A T M I, Inc. (Nasdaq: ATMI), today announced the expansion of its gallium arsenide (GaAs) capacity. Because of overwhelming wireless and communications customer demand, A T M I s Services (previously known under the Epitronics brand) business - the worlds largest independent specialty epitaxial foundry - is installing additional Aixtron 2600 G3 systems for advanced heterojunction bipolar transistor (HBT) and other device structures.

A T M I s Services Division is a leading worldwide provider of gallium arsenide epitaxial services for the global wireless and telecommunications markets, through its III-V Division in Phoenix, Arizona. Already producing HBT devices valued for digital communications, A T M I is adding the additional Aixtron capacity as a direct response to customers product demands. Delivery is anticipated during the second half of 2000. The gallium arsenide capacity expansion is a crucial component of A T M I Services on-going strategy to provide a comprehensive range of specialty epitaxial services to meet all customer requirements.

Tim Murray, Vice-President of the III-V division of A T M I Services, said, "When it comes to HBT and other high performance device structures for leading edge digital wireless and telecommunications markets - for fiber optic and Internet network support devices, digital handheld phones, GSM and PCS products - our customers are asking us to increase our production volume to provide them with the quality GaAs epitaxy which is fundamental to their products success in their application. In the very small universe of GaAs epitaxy suppliers qualified to support commercialized RF parts, we believe that A T M I Services is among the world leaders in responsiveness to customers in terms of product quality, support after the sale and fast cycle time - A T M I trademarks. As we continue our program of capacity expansion, we believe we will continue to enhance our market share in this competitive arena."

Phil Yin, President of A T M I s Services Business, said, "As represented by our winning the Raytheon RF Components business recently, A T M I Services HBT epitaxy process is world class. Adding additional capacity enhances our ability to attract more business from current - and new customers who need volume production capabilities. With our multi-step expansion plan underway, A T M I Services Silicon and III-V Divisions can already handle more than 100,000 wafers each month. A T M I s success is customer driven - and our customers are on an exciting expansion track because of the explosive growth of the markets they serve and their own excellent product offerings. We can already foresee the need to further expand capacity to handle the needs of the marketplace."

About Epitaxial Technology

An epitaxial film - epi - is a layer of single crystal semiconductor seeded from a substrate s (wafer s) crystalline structure, offering advanced features that differentiate it from the substrate wafer.

Epi allows for novel structures such as high resistivity layers over heavily doped buried layers, for dopants to be incorporated into the epi layers, and for freedom of contaminants within the epi layers.

These epi advantages make it an essential step in the fabrication of CMOS, BiCMOS, and analog and power devices. Device manufacturers are able to manipulate and tightly control the dopant concentration of device structures, which can result in a tenfold increase in yield during the manufacturing process.

A T M I Services Business (previously known as Epitronics) is a leading supplier of specialty epitaxial services to the semiconductor industry. The III-V Division in Phoenix, Arizona provides GaAs, AlGaAs, InGaP, InGaAs, InAlAs, and InP epitaxial services for fiber optic, digital communication, and wireless applications. A T M I Services is ISO-9002 and QS-9000 certified.

A T M I provides specialty materials and related equipment and services to the worldwide semiconductor industry. Related equipment includes materials packaging systems, delivery systems, sensors, and a full line of environmental equipment. Services include materials management, equipment servicing, and thin film deposition.

Statements which are not historical information are forward looking, and involve risks and uncertainties, including, but not limited to: changes in semiconductor industry growth or A T M I s markets; competition, problems, or delays developing and commercializing new products; problems or delays in integrating acquired operations and businesses into A T M I; and other factors discussed in A T M I s filings with the Securities and Exchange Commission. Such risks and uncertainties could cause actual results to differ from those projected.

CONTACT:
ATMI
Dean Hamilton, 203/794-1100
dhamilton@atmi.com
http://web.atmi.com

For Epitaxial Services information:
A T M I Services, III-V Division
623/581-3663
623-581-3415 facsimile
episales@epitronics.atmi.com