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Technology Stocks : KLA-Tencor Corporation (KLAC)
KLAC 1,159+1.2%3:59 PM EST

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To: david jung who wrote ()8/25/1999 7:07:00 PM
From: SemiBull   of 1779
 
KLA-Tencor Introduces First Automated Defect
Reduction and Yield Control Solution for the Thin
Film Head Market

SAN JOSE, Calif.--(BUSINESS WIRE)--Aug. 25, 1999--KLA-Tencor Corp.
(NASDAQ:KLAC - news) today introduced the AITTFH(1), the first automated inspection system for thin film head (TFH)
applications in the data storage industry. Designed to help TFH manufacturers increase yields and potentially save millions of
dollars in otherwise lost revenue, the AITTFH(1) enables the immediate detection of process tool excursions, minimizing the
number of TFH wafers exposed to out-of-control process conditions. An extension of KLA-Tencor's widely accepted AIT
wafer inspection technology, the AITTFH(1) delivers the high throughput, superior sensitivity and low cost of ownership (CoO)
TFH manufacturers need to help control their processes, achieve maximum yields and speed time to market.

The need for automated TFH inspection is driven by the unceasing demand by PC users for increased data storage capacity.
Additionally, industry experts expect storage densities to further increase by approximately 150 percent between 1999 and
2002. This dramatic increase in storage density is driving TFH manufacturers to transition rapidly to giant magneto resistive
(GMR) technology to produce the smaller thin film heads needed to read and write on these extremely dense disk drives. This,
in turn, is driving TFH critical dimension shrinks at an accelerating rate. Advanced TFH geometries are presently at 0.65
micron, while advanced integrated circuit (IC) geometries are at 0.18 micron--current data storage industry roadmaps call for a
convergence of geometries by 2003. This aggressive roadmap is rapidly making the manual inspection technology currently in
use in TFH manufacturing obsolete.

``Manual inspection is inherently slower and less accurate than automated inspection. This problem will be exacerbated as TFH
device geometries continue to shrink, making it almost impossible to see the defects,' said Rod Browning, KLA-Tencor's
general manager for the Wafer Inspection Division. ``With its high throughput of up to 65 wafers an hour at high sensitivity and
defect capture rate, the AITTFH(1) can inspect 100 percent of the devices on a TFH wafer, enabling manufacturers to make
critical go/no-go process decisions.'

Current TFH manual methodologies require operators to make yield/process control decisions based on a less than 1 percent
sampling of wafers containing up to 20,000 TFH devices. ``This level of inspection rate does not provide a reliable degree of
statistical certainty,' noted Browning. ``With the large number of devices per wafer, the risk of making critical process
decisions based on a statistically insignificant sample is very high.'

Industry figures indicate that typical yield rates in TFH manufacturing currently run between 35 and 80 percent post-rework, as
opposed to the 90 percent or greater pre-rework yields normally seen in the semiconductor industry. Automated inspection
plays a critical role in helping the IC industry achieve these high yields, and evidence from that industry clearly links increased
yields to increases in fab revenue and profitability. Such automation can now provide TFH manufacturers with similar inspection
capabilities for their yield improvement strategies.

KLA-Tencor shipped an AITTFH(1) system to Seagate, a leading disk drive manufacturer, last December. Commenting on
the resultant benefits from automating its wafer inspection, Ken Allen, Seagate's vice president of Wafer Operations noted,
``The limitations of manual inspection play a major role in yield loss and scrap in thin-film magnetic recording head
manufacturing. The AITTFH(1) will help us to more accurately flag wafers for either rework or scrap early in the manufacturing
process, driving down costs and increasing our return on manufacturing investment.'

``We are very conscious of the economic and market drivers for the data storage industry,' said Randy Tully, general manager
for KLA-Tencor's Data Storage Business Unit. ``Disk drives and the associated TFH technology have an extremely short
product life cycle and period of maximum profitability--typically six to nine months. This, in turn, puts extreme pressure on TFH
producers to ramp their capacity and maximize their yields. KLA-Tencor's AITTFH(1) defect inspection technology can help
them reach yield entitlement faster, resulting in improved bottom line performance.'

Built on an extendible platform, the AITTFH(1) meets both the current inspection needs of TFH manufacturers and their
advanced requirements for aggressive design rule shrinks. Leveraging KLA-Tencor's production-proven, double-darkfield
technology, the AITTFH(1) delivers the high sensitivity required to capture critical TFH defect types such as fencing, small
particles, scratches, photo defects and microscratches. Incorporating KLA-Tencor's IMPACT automatic defect classification
(ADC) software ensures consistent defect classification and enables faster time to actionable yield information.

About KLA-Tencor: KLA-Tencor is the world leader in yield management and process control solutions for semiconductor
manufacturing and related industries. Headquartered in San Jose, Calif., the company has sales and service offices around the
world. An S&P 500 company, KLA-Tencor is traded on the Nasdaq National Market under the symbol KLAC. Additional
information about the company is available on the Internet at kla-tencor.com.

Note to Editors: (1) The correct designation of this new tool is AITTFH (with the TFH in superscript font).

Contact:

KLA-Tencor
Viet Pham, 408/875-6647
viet.pham@kla-tencor.com
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