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To: Jim Bishop who wrote (20117)	1/13/2000 1:35:00 PM
From: Mr Metals	Read Replies (1) \| Respond to of 150070

Yuppers, but realistically, I'd like to see $10 out of it, and not too long from now $10.00 could seem like chump change if SITK get's their business plan working effectively.... Check this out dudes...SITK = NOT A BUY RECO..This overview was e-mailed to me last night by an engineer from SITK.. SITEK Incorporated (NASDAQ BB SITK) CORPORATE OVERVIEW SITEK Incorporated (SITEK) is a Delaware corporation, located in Tempe, Arizona. SITEK provides cutting edge products and services to the worldwide semiconductor electronics manufacturing companies. It is a knowledge-based company providing leading edge process systems and materials (silicon) for its customers in their quest for market leadership and growth. The semiconductor electronics industry is on a historical trend dating back to the early 1960's that will take it from a revenue level of nearly $150 Billion in the late 1990's to between $1.0 and !.5 Trillion in 2010. This market traditionally spends from 10 to 15% on capital equipment and services, meaning that the supplier segment to the industry (of which SITEK is a part) will serve a total available market in ten or eleven short years of $100 Billion to $150 Billion. Although the company is young (founded in mid-1998), its highly experienced staff is now positioning the company to successfully serve a substantial portion of this market. The market served by SITEK, the semiconductor electronics manufacturers, is evolving and changing. In the 1960's and early 1970's, the major semiconductor houses designed, developed, installed and produced product with their own equipment. There were few if any "outside" equipment or silicon wafer suppliers. In the late 1970's, a number of semiconductor equipment and materials suppliers began to supply their products. Companies from that era such as Applied Materials in Santa Clara CA, have now grown to annual revenues of well over $1 Billion to $7 or $8 Billion. It is clear that a few such suppliers have a major share of today's $15 to $20 Billion TAM. In ten short years, there will be ten times as many very large suppliers. This represents a very substantial opportunity for SITEK. In addition, the industry is already changing from one where the customer (the semiconductor "fabs") buy large numbers of individual pieces of equipment, install them and build up production capacity. They have run out of time and skilled people to handle these tasks, and it is now evolving that skilled suppliers will provide complete, "turnkey" operations to the customers. Even to the point of managing and operating these facilities under contract for the customers as they move up the value added ladder into electronic products and systems. SITEK is establishing a "baseline" capability to provide specific manufacturing units and services to our customers. Several of the key staff have extensive experience in the industry extending back to the beginning in the early 1960's. This experience and knowledge base provides a competitive edge for the company in the coming market revolution. We can tie the incoming materials to the equipment and the process to produce the end product for a specific technology. The shift will be from a discrete equipment supplier to a service provider. The SITEK customer base has a few success factors, that are also shared by the company itself in order to succeed, our customers must on a continuous basis: 1. Achieve very short cycle times from concept to market. 2. Gain and maintain technical leadership. 3. Reduce product costs. 4. Maintain flexible manufacturing with sufficient capacity. SITEK is positioning itself to address these factors with our customers through manufacturing systems, high levels of automation (very smart systems) and applications of leading edge technologies. At the end of 1999, SITEK participates in four market segments - 1. The development and marketing of upgrade components for wafer processing systems. 2. Silicon wafer processing services, with the initial thrust the providing of chemical mechanical planarization product support, process support and engineering services. 3. The manufacture and supply of proprietary wafer manufacturing equipment - in particular high temperature furnace and heat treating systems for silicon wafers and complex gas and vapor distribution systems for wafer fabrication operations and facilities. 4. The acquisition and refurbishment of pre-owned semiconductor process equipment for a number of semiconductor manufacturers. The sales of these products and services have totaled nearly $13 million for the first two quarters (ending 9/30/99) and earnings of $0.15 per share. The bulk of the sales coming at this stage from the sale of pre-owned and refurbished equipment. New Products: The "CORONA" CMP Wafer Carrier Upgrade Product SITEK has introduced two new products to the market in recent weeks. The first is the "Corona" polishing head to retrofit onto existing chemical mechanical planarization (CMP) tools in the field. The Corona polishing head provides a substantial improvement in product uniformity and machine throughput. Cost of ownership models show that the Corona will save customers well over $1.5 million per system, per year. There are nearly 1,000 tools in operation in the field that can benefit from this proprietary upgrade. SITEK has patents applied for for this product which offers the customers substantial improvement in quality, manufacturing capacity and cost reduction. The "910" MAGNETIC ANNEAL AND BATCH RAPID THERMAL PROCESS SYSTEM SITEK has begun shipping its proprietary thermal/magnetic system that is used in the processing of the new, state of the art silicon "chips" that employ small magnetic regions to store information (memory) or in other applications such as bio-detectors. Without the strong magnetic field, the system is the only batch, rapid thermal processing system on the market to meet the manufacturing requirements of the next generation computer chips. SITEK has applied for several patents covering this product. This product line provides customers with enabling technology and cost reduction. Next Generation Chemical Vapor Deposition (CVD) Systems. Since the late 1950's the semiconductor industry has applied CVD technology to the fabrication of single crystal silicon (known as "epitaxial growth"), compound films such as silicon nitride or silicon carbide and a number of other important applications. The CVD process involves the chemical reaction of gases (such as hydrogen) and chemical compounds such as silicon tetrachloride, to "deposit" solid films directly from the vapor and gas mixture at elevated temperatures. SITEK has developed the process and models for a next generation system that substantially increases productivity while at the same time reducing costs. This product is in development and scheduled for market introduction in 2002. Nest Generation CMP System SITEK has developed the design and test models for the next generation CMP tool to be introduced in late 2000. This tool offers substantial increases in productivity and reduction in cost. The engineering staff at SITEK are among the world's most experienced technologists in CMP system design and manufacturing, and they have evolved the product to meet the demand in the industry for ruggedness, simplicity and high throughput. The market for CMP tools is the most rapidly growing in the industry and is expected to reach $1.2 Billion in 2001 with more growth to follow. The next generation SITEK tool will have the opportunity to capture a significant part of this growing market. The special CVD products and the Magnetic and Non-Magnetic batch anneal systems will also service very large and growing markets. The Future (2003 and Beyond) SITEK is selling into a market that is changing, and is positioning itself through its products and services to take advantage of the opportunities that will come. The customers will depend on suppliers who will provide full-service or "turn-key" manufacturing units. The customers will not have the time, or the people resources to continue to build their own manufacturing capacities as they have in the past. More and more responsibility will fall on the suppliers. SITEK has a strong focus on very advanced machine and system automation - with the ability to minimize the role of the human operator in the minute to minute decision making in a process. SITEK's "Smart Systems" will enable fast startup, elimination of extensive test runs, and extensive engineering involvement in the manufacturing process at the customer's site. SITEK intends to provide "manufacturing unit" products which will include all, integrated manufacturing systems, support operations and facilities support - in other words a complete service to the customer rather than individual tools. SITEK will likely not manufacture all individual tools and systems that will be needed in a unit, but will acquire what is necessary from other suppliers on a partnership or affiliate basis. SITEK will provide the integrating system automation that will be absolutely necessary for error-free manufacturing. SITEK, through its own materials supply operations will build an provide its knowledge base to the customers from its own experience and manufacturing practices. We expect this to be a major competitive advantage. SUMMARY SITEK is a young, aggressive company with a staff that has dozens if not hundreds of years of industry experience that is being applied to meet the demands of the semiconductor electronics industry for smart, low cost manufacturing for the atomic-level electronic products just on the horizon. We are applying our specific expertise to capture market share and provide a revenue stream to support our growth and prepare for the expanded role of the supplier in the future.