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Technology Stocks : Silicon Valley Group

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To: Duane L. Olson who wrote (1351)12/10/1997 10:16:00 AM
From: Maya  Read Replies (2) of 2946
 
Wednesday December 10, 8:36 am Eastern Time

Company Press Release

SVG Receives Follow-On Order From LSI Logic For Micrascan III
Lithography Tool

Order marks broad industry acceptance of step-and-scan technology

SAN JOSE, Calif.--(BUSINESS WIRE)--Dec. 10, 1997--Silicon Valley Group (SVG), a leading supplier of wafer
processing systems to the worldwide semiconductor industry, today announced that LSI Logic Corp. (Milpitas,
Calif.) has placed a follow-on order for a Micrascan III deep ultraviolet (DUV) step-and-scan lithography system.
The order, which follows on the heels of a 1996 Micrascan II purchase, shipped during the last week of November.

Representing SVG's diverse customer base for the Micrascan family of tools -- including logic, dynamic random
access memory (DRAM) and application-specific integrated circuit (ASIC) manufacturers -- the order indicates the
broad industry acceptance of step-and-scan technology. According to G. Dan Hutcheson, president of industry
research firm VLSI Research, Inc. (San Jose), ''DUV step-and-scan technology has been increasingly adopted by a
wide range of manufacturers due to its excellent process results. Its superior CD control yields chipmakers much
faster devices, dramatically increasing the market value of a company's production. It also allows larger chips, which
helps to further the industry's progression along Moore's famous curve. SVG pioneered this rapidly expanding
lithography market and is the leader in providing the industry with these advanced tools, which are required to keep
chipmakers on top of the competitive curve,'' stated Hutcheson.

SVG Lithography Division President Edward Dohring noted that the Micrascan III is well-suited for LSI Logic's
advanced ASIC manufacturing. ''LSI Logic chose the system for its sub-0.25 micron production capabilities, as well
as its superior CD control and overlay features,'' said Dohring.

''These attributes result in increased yields without sacrificing critical performance parameters -- making the
Micrascan III an ideal solution to LSI Logic's advanced processing needs.'' Dohring added that SVG's ability to
quickly deliver the tool and LSI Logic's success with its existing Micrascan II system were key factors in the
purchasing decision.

LSI Logic will use the Micrascan system for its new G11(TM) product family -- the company's 11th generation
ASIC technology. Featuring an effective gate length of 0.18 micron, the G11 product family empowers designers to
simultaneously improve performance, reduce chip size and reduce power consumption.

In addition, the G11 product advancements provide for a family of ASICs that is 30 percent faster than the previous
generation, while reducing power consumption by up to 75 percent.

The third generation tool in SVG's Micrascan series, the Micrascan III features enhanced resolution capabilities and
was developed specifically to meet the chip industry's production needs for below 0.25 micron devices. The tool
combines the most advanced projection optics available, a new 248 nm excimer laser system, SVG's patented
AXIOM(TM) off-axis alignment technology for superior overlay and a monolithic wafer stage for increased
throughput. These features make the Micrascan III the most advanced DUV step-and-scan lithography system
available for sub-0.25 micron production of today's most complex devices.

''Safe Harbor'' Statement under the Private Securities Litigation Reform Act of 1995: Except for historical
information, the matters discussed in this news release that may be considered forward-looking statements may be
subject to certain risks and uncertainties that could cause the actual results to differ materially from those projected,
including uncertainties in the market, the timely development and acceptance of new products and upgrades, pricing
competition, procurement and manufacturing efficiencies, and other risks detailed from time to time in the company's
SEC reports. The company assumes no obligation to update the information in this release.

About LSI Logic Corp.: LSI Logic Corporation (NYSE:LSI - news), The System on a Chip Company(TM), is a
leading supplier of custom high-performance semiconductors, with operations worldwide. The company enables
customers to build complete systems on a single chip with its CoreWarer design program, thereby increasing
performance, lowering system costs and accelerating time to market. LSI Logic develops application-optimized
products in partnership with trendsetting customers, and operates leading-edge, high-volume manufacturing facilities
to produce submicron chips. The company maintains a high level of quality, as demonstrated by its ISO 9000
certifications. LSI Logic is headquartered at 1551 McCarthy Blvd., Milpitas, California 95035. 408-433-8000,
lsilogic.com.

About Silicon Valley Group Inc.: SVG is a leading manufacturer of automated wafer processing equipment for the
worldwide semiconductor industry. The company designs, manufactures and markets technically sophisticated
equipment used in the primary stages of semiconductor manufacturing. Its products include photoresist processing
equipment; oxidation, diffusion and low-pressure chemical vapor deposition processing systems; and
photolithography exposure tools that use step-and-scan technology. SVG is listed on the Nasdaq Stock Market
under the symbol SVGI. The company's World Wide Web address is: svg.com .

Contact:

Silicon Valley Group Inc.
Laurie C. Conner, 408/467-5847 (Director of Marketing)
Email: connerl@svg.com
or
Nancy Szymanski, 408/467-5870 (Investor Relations)
Email: szymansn@svg.com
or
MCA Inc.
Terry Anderson, 650/968-8900
E-mail: tanderson@mcapr.com
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