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AXT, Inc. Signs Multi-Million Dollar Contract With MBE Technology Ptd. Ltd

Source: AXT, Inc.

MBE Technology Participates in AXT s New Supply Guarantee Program

Fremont, CA. AXT, Inc. (Nasdaq: AXTI), a leading manufacturer of compound semiconductor substrates and opto-electronic devices, today announced that it has signed a one-year multi-million dollar contract with MBE Technology Ptd. Ltd., a leading MBE epitaxy wafer manufacturer based in Singapore, to provide 6-inch gallium arsenide wafers during 2001. As part of the agreement, MBE will join AXT s new Supply Guarantee program.

Customers participating in the program are assured that they will receive their requested supply of wafers at predetermined delivery dates and prices. Program participants make partial advance payments to AXT. AXT will allocate a portion of its substrate capacity to the Supply Guarantee program so the number of participating customers will be limited.

"The substrate market continues to grow, driven by the demand in fiber optics, wired and wireless communications, and light-emitting devices," said Morris Young, president and CEO of AXT. "Furthermore, many device manufacturers are moving from ion-implantation to epitaxy, and from 4-inch gallium arsenide wafers to 6-inch. As a result, shortages of high-quality substrates have become a concern for many epitaxy and device manufacturers.

"AXT is pleased to support our customers by assuring that their substrate requirements are met. Our VGF technology enables us to produce low defect wafers, even in the more challenging 6-inch die size. Also, because we design and build our own VGF crystal growth pullers, we have been able to increase our capacity very rapidly to meet the demand for both 4-inch and 6-inch gallium arsenide wafers. By offering a Supply Guarantee program, we can assure our participating customers that they will receive the substrates they need to support their continued growth," he said.

"This newest agreement with MBE Technology continues the long-standing positive relationship between our companies," Young added. "We are very happy to be a major substrate supplier to MBE Technology and are committed to providing them the highest quality substrates with competitive pricing, strong technical support and on-time delivery."

L.G. Yeap, Director of MBE Technology Ptd. Ltd. said, "Our relationship with AXT through the years has been very cooperative. In meeting our high standards for quality, low defects and prompt service, AXT has proven to be a superior vendor. We have always been impressed with AXT s VGF technology and by their capacity to supply high volumes of gallium arsenide and indium phosphide substrates. This year, MBE s business is expected to grow by nearly 60 percent. By entering into the Supply Guarantee program with AXT, we have secured adequate substrates to meet the increasing demand for our epitaxial wafer products and to continue our strong growth in 2001."

About AXT, Inc.

AXT designs, develops, manufactures and markets high-performance substrates for the communications industry. AXT is also a producer of light-emitting diodes (LEDs) for the display and lighting industries and diodes for laser pointers. AXT s proprietary Vertical Gradient Freeze (VGF) crystal growth technology produces low-defect, semi-insulating and semi-conducting gallium arsenide, indium phosphide and germanium substrates. AXT has also introduced gallium nitride substrates for manufacturing blue LEDs. For more information, see AXT s website at www.axt.com. AXT can also be reached at 4281 Technology Drive, Fremont, California 94538 or call 510-683-5900. AXT is traded on the Nasdaq National Market under the symbol AXTI.

About MBE Technology Ptd. Ltd.

MBE Technology is a Singapore-based company, which produces volume MBE-grown epitaxy wafer for PHEMTS to major wireless handset and device manufacturers in the United States and the rest of the world. For more information, MBE Technology can be reached at 14 Science Park Drive, #04-03 The Maxwell, Singapore Science Park, Singapore 118226. The telephone number is 65-773-5211 and fax number is 65-773-5068. MBE Technology USA, Inc. (MBE Technology s subsidiary) is located in 1170 Ninth Street, Suite #3, Alameda, CA 94501, USA. The office phone number is 510-523-0288 and fax number is 510-864-1308.

Safe Harbor Statement

This press release contains forward-looking statements regarding AXT s new Supply Guarantee program, its relationship and agreement with MBE Technology, Ptd. Ltd., its ability to supply substrates to market, the current market conditions in the communications and opto-electronic device industries and the future financial performance of AXT. Forward-looking statements address matters that are subject to a number of risks and uncertainties. In addition to the general risks associated with the development of complex technology and the risks associated with the company s acquisition and the integration of Lyte Optronics, Inc., future results of AXT will depend on a variety of factors, including, among others, the timing of significant orders, unexpected cancellations or returns by customers, the ability of AXT to bring new products to market, the timing of new product releases and product announcements by AXT s competitors and other competitive factors. Reference is made to AXT s filings with the Securities and Exchange Commission, including AXT s Form 10-K for the year ended December 31, 1999 and AXT s Form S-3, for further discussion of risks and uncertainties regarding the company s business.

Contact: Don Tatzin of AXT, Inc., Tel: 510-683-5900 or Leslie Green of Stapleton Communications Inc., Tel: 650-470-4222 for AXT, Inc

 

Don Tatzin of AXT, Inc.,
Tel: 510-683-5900
or Leslie Green of Stapleton Communications Inc.,
Tel: 650-470-4222 for AXT, Inc
 
Web site: http://www.axt.com
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