Tegal Receives Orders for 900 Series Etchers from Leading Fabs in Japan


Repeat Orders for MEMS and Wireless Device Fabrication

SAN JOSE, Calif.--Aug. 25, 2006--Tegal Corporation (Nasdaq:TGAL), a leading designer and manufacturer of plasma etch and deposition systems used in the production of integrated circuits and nanotechnology devices, today announced that two leading Japanese companies had placed repeat orders for Tegal 900 series plasma etch systems. Tegal has shipped over 1500 systems of this type to global semiconductor fabs since its introduction.

"We are pleased to receive continuing repeat orders for our workhorse etch systems from our Japanese customers," said Thomas Mika, President and CEO of Tegal. "Our long-term presence in Japan and a committed local sales and service team has helped us compete effectively against other suppliers, including several Japan-based companies. By leveraging our success in Japan, we are in the process of revamping our sales and service operations in the rest of Asia, a region that accounts for over 60% of the global semiconductor capital equipment billings. We look forward to helping our customers around the world ramp production to meet the current upturn in specialized semiconductor device fabrication."

Compound semiconductors, which incorporate materials such as Gallium Arsenide and Iridium Oxide, are widely used to make chips included in cell phones and other wireless devices. One of the largest application areas for MEMS devices is in the automotive sector, in which such devices are used for sensing motion, pressure and acceleration for traction control, suspension control, airbag safety and braking systems.

The Tegal 900 series etch tool features an RF diode plasma source optimized for the etching of a wide variety of films, at the industry's lowest cost of ownership. The flexible, automated wafer handling system, a compact footprint and a broad portfolio of processes enable the 900 series etchers to be widely used in multiple sectors, including Silicon CMOS, Integrated Passives, MEMS devices and Thin-Film Head manufacturing. The 900 series has been continuously updated with the latest in automated control systems (ACS) and modern factory communication protocol for automated fabs. The platform incorporates a production-proven transport system that can accommodate 75 mm to 200 mm round, square or rectangular substrates.

The ACS upgrade is available exclusively from Tegal as a field or factory retrofit for the existing installed base of 900 and 980 series systems. It features a fully integrated graphical user interface, parametric data logging, full factory automation support, and throughput enhancements for the wafer-handling system. For information on the 900 series ACS upgrade package, please contact your local Tegal representative or email info@tegal.com.

About Tegal

Tegal provides process and equipment solutions to leading edge suppliers of advanced semiconductor and nanotechnology devices. Incorporating unique, patented etch and deposition technologies, Tegal's system solutions are backed by over 35 years of advanced development and over 100 patents. Some examples of devices enabled by Tegal technology are energy efficient memories found in portable computers, cellphones, PDAs and RFID applications; megapixel imaging chips used in digital and cellphone cameras; power amplifiers for portable handsets and wireless networking gear; and MEMS devices like accelerometers for automotive airbags, microfluidic control devices for ink jet printers; and laboratory-on-a-chip medical test kits.

For more information about Tegal Corporation, visit: www.tegal.com.

Contacts
Tegal Corporation
Murali Narasimhan, 707-763-5600

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