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News Article

Tegal Receives Reorders for 901G Plasma Etch Systems from TRW for Advanced Telecommunications Applications

Petaluma, CA. Tegal Corporation (NASDAQ NM: TGAL) today announced that TRW (NYSE: TRW), a leader in the design and fabrication of high-performance integrated circuits (ICs), has purchased additional Tegal 901G diode plasma etchers. TRW will use the systems to etch 100mm gallium arsenide (GaAs) wafers to be used in the manufacture of HBT (heterojunction bipolar transistor) devices. HBT devices are used extensively in the wireless telecommunications industry. The order, valued at nearly one million dollars, is scheduled for installation during this fiscal year at TRW s facility in Southern California.

GaAs is a high performance compound semiconductor or "III-V" material. These materials are used to make many of the ICs for high-performance networks, data communications, cellular phones and other wireless telecommunication devices. Demand for wireless internet ready appliances and services is expected to fuel explosive growth in demand for high bandwidth telecommunication ICs. According to market research firm, Strategies Unlimited, 1999 sales of compound semiconductors into the optical telecom market were valued at $2.6 billion and the market is expected to grow at a 40% CAGR for the foreseeable future. This growth is also serving to fuel the market for production-capable etch systems, particularly those manufactured by Tegal.

"Telecommunications ICs now account for almost half of all compound semiconductor sales," commented Jim McKibben, vice president of worldwide marketing and sales for Tegal. "The TRW reorders once again demonstrates the global acceptance of our leading-edge etch capabilities by major manufacturers in this market sector. Tegal s 900 series etch systems enable our customers to achieve high productivity and low operating costs for these rapidly expanding GaAs and HBT applications."

Tegal s 900 series systems are widely recognized for their low cost of ownership and high-throughput. More than 1,300 of the 900 Series systems have been installed around the world and are supported by an extensive worldwide parts and service organization. Adept at handling both round and square substrates, the 900 Series systems deliver highly reliable, repeatable results in etching a variety of films used to manufacture semiconductors, telecommunications and optoelectronic devices, flat panel displays and thin film magnetic heads. The Tegal 901G is specially configured for GaAs processing.

About TRW

TRW Inc. provides advanced technology products and services to the automotive, aerospace, telecommunications and information systems markets worldwide. TRW s 1999 sales were $17 billion. For more information, visit http://www.trw.com.

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), opto-telecom devices and other 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, 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
Tel: 707/763-5600
jmckibben@tegal.com

or
The Loomis Group, Inc.
Gabrielle Svenning
Tel: 617/638-0022
gabrielle@loomisgroup.com

 

Tegal Corporation
Jim McKibben
Tel: 707/763-5600
jmckibben@tegal.com
or
The Loomis Group, Inc.
Gabrielle Svenning
Tel: 617/638-0022
gabrielle@loomisgroup.com
 
E-mail: gabrielle@loomisgroup.com
Web site: http://www.tegal.com
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