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To: robert b furman who wrote (661)	10/29/2001 8:31:02 AM
From: Proud_Infidel	Respond to of 1138

How $150 million in automation is now used inside new wafer fabs New wafer-processing plants today invest about $150 million in automation hardware and software systems, according to executives at Brooks Automation Inc. and PRI Automation Inc., which this past week announced the biggest merger yet in the fab automation segment. The need for supplier consolidation and the severe downturn in the chip industry drove these two Massachusetts companies together to workout an agreement, which will make PRI part of Brooks in a stock transaction that's worth $380 million. Once cleared by governmental agencies and finalized early next year, the new company will be called Brooks-PRI Automation Inc, headquartered in Chelmsford. Mass. (see Oct. 24 story). The new business opportunity for the merged automation company will roughly be equal $150 million per fab, according to Mitchell G. Tyson, president and CEO of PRI. After announcing the merger agreement, Tyson and Brooks chief executive officer Robert J. Therrien told analysts that their companies completed only in limited segments and the product lines fit well together. PRI hardware is running with Brooks software already in a number of fab locations, said Tyson, who will become a member of the board of directors at Brooks-PRI Automation but will give up his chief executive and president titles. Here's where Tyson said chip makers are now spending $150 million on automation in new fabs: $50 million on vacuum systems; $30 million on atmospheric tools; $15 million on load ports; $5 million on sorters; $20 million on software; and $30 million for wafer storage and transport systems.--J.R.L.

To: robert b furman who wrote (661)	10/29/2001 9:17:45 AM
From: BMcV	Read Replies (1) \| Respond to of 1138

Hi Bob, Your point about companies with debt being in the gravest situation makes TER's actions all the more interesting. I've followed the company for years and know their management to be extremely conservative and risk-averse. So why pile on debt now? Either they see a dangerous and prolonged downturn, or they have acquisition plans. Why do a convertible offering now with the stock near lows, unless you either think your stock's going lower, or you have immediate need of cash? I'm just speculating that if they make an acquisition, and if--as you or SB pointed out--it's not likely to be in the chip-testing area, it well might be in the network-testing business. DIGL and ACTR come to mind, though ACTR has $1 billion in debt, which TER won't like. I agree BRKS and PRIA will be a powerhouse. PRIA is valued in the merger at sales (including cash), so BRKS is getting a great price. PRIA has traded on its potential for years, which it has never fulfilled. Now with BRKS's management, maybe they will finally match expectations.