Uniroyal Technology Corporation Continues Rapid Expansion of Sterling Semiconductor Silicon Carbide Production Capacity

Source: Uniroyal Technology Corporation

Completes Fivefold Increase in SiC Wafer Production Equipment

Sarasota, FL. Expansion at Sterling Semiconductor, Inc., a subsidiary of Uniroyal Technology Corporation (Nasdaq: UTCI) is progressing according to its plan to increase silicon carbide (SiC) wafer production by a factor of ten during 2001. Sterling is a leading producer of SiC wafers used to make advanced semiconductor devices with performance capabilities that exceed the limits of semiconductors made on conventional materials such as silicon and gallium arsenide.

Sterling has completed a fivefold expansion of crystal growth furnaces in Danbury, Connecticut and construction is underway on the buildout of additional manufacturing infrastructure at the Sterling, Virginia facility, which should be completed during the fall of 2001. Crystal growth furnaces installed during this facility expansion will complete the tenfold increase.

To complement the rapid growth, additional fabrication and characterization equipment has been installed in Connecticut which has dramatically increased its wafer processing capabilities. Sterling s R & D team has made consistent improvements in wafer quality while heightening its focus on expanded substrate size. Sterling has demonstrated 3" SiC wafers and is currently working to establish a 3" SiC substrate line under a U.S. Government Title III contract.

The expansion in Virginia will strengthen Sterling s focus on semi- insulating substrates. Silicon carbide semi-insulating substrates are important for a wide range of commercial and military communications devices because of their high resistance to electrical conduction, a property essential to the performance of semiconductor devices used in wireless communications applications. Sterling was recently awarded a $1 million contract by the U.S. Air Force to continue its research for the development of semi-insulating substrates.

"We are pleased with the enormous progress we have made in Connecticut," said Robert L. Soran, President and Chief Operating Officer of Uniroyal Technology Corporation. "In just a few months, we have installed a substantial amount of production equipment while continually increasing product quality and quantities and we expect to move just as quickly with our expansion in Virginia. These investments are quickly advancing Sterling s capabilities in wafer quality and expansion as well as the development of semi-insulating substrates to meet the needs of customers."

Sterling recently announced an R & D contract with General Electric Corporate Research & Development (GE CRD) for the development and evaluation of Schottky diode devices using Sterling s SiC wafers and epitaxy. According to a market study by Frost & Sullivan, the SiC device market is expected to reach approximately $4 billion in 2003. Because of its unique physical and electronic properties, SiC operates efficiently at high temperatures, high power, and high frequency levels. Applications for SiC devices include wireless communications and industrial process control.

Uniroyal Technology s Compound Semiconductors & Optoelectronics business segment includes Uniroyal Optoelectronics, Sterling Semiconductor, Inc., and NorLux Corp. Uniroyal Optoelectronics manufactures high brightness light emitting diodes (HB-LEDs), a rapidly growing market with applications such as traffic signals, indoor/outdoor signage and automotive applications. Brand names include POWER-Ga(i)N(TM) and POWER-BR(ite)(TM). Sterling Semiconductor is a leading producer of silicon carbide (SiC) substrates, epitaxial thin films on SiC substrates and is developing SiC devices for wireless communications, industrial process control, and power amplification. NorLux Corp. specializes in the design and manufacture of custom lighting solutions utilizing light emitting diodes (LEDs). Well-known brand names in Uniroyal s Coated Fabrics and Specialty Adhesives segments include NAUGAHYDE(R) and NAUGASOFT(R) in coated fabrics and, SILAPRENE(R), HYDRA FAST-EN(R) and GUNTHER ULTRA/BOND(R) in adhesives.

The Company s common stock and warrants trade on the Nasdaq/NMS under the symbols UTCI and UTCIW, respectively.

Statements made herein that are forward-looking in nature within the meaning of the Private Securities Litigation Reform Act of 1995 are subject to risks and uncertainties that could cause actual results to differ materially. Such risks and uncertainties include, but are not limited to, those related to business conditions and the financial strength of the various markets served by the Company, the level of spending for such products and the ability of the Company to successfully manufacture and market its products. For the latest news about Uniroyal Technology Corporation, call 800-836-4014. Contact: George J. Zulanas, of Uniroyal Tel: 941-361-2220