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To: Dave Chanoux who wrote (1385)	2/12/1998 5:02:00 PM
From: Brad Rogers	Read Replies (1) \| Respond to of 3813

Lam Research Corporation Announces Company Restructuring and Reduction in Workforce FREMONT, Calif.--(BUSINESS WIRE)--Feb. 12, 1998--Lam Research Corporation (NASDAQ:LRCX - news), a leading supplier of wafer fabrication equipment to the worldwide semiconductor industry, today announced a restructuring of the company which includes a reduction in its global workforce of approximately 14 percent. Lower prospects for orders and revenue driven primarily by the Asian financial crisis are cited as the reason for the action. The company will restructure to put more focus on its core etch and Chemical Mechanical Planarization (CMP) product groups and reduce its flat panel display and thermal CVD operations. Manufacturing operations will be downsized and consolidated. As a result of the organizational changes, approximately 700 employees at locations throughout the company's global operations will be affected. Lam will take a pre-tax restructuring charge to earnings in the range of $80 million to $85 million, or $1.47 to $1.57 per share, in the third quarter of fiscal 1998. The restructuring charge includes costs related to severance compensation and consolidation or closure of certain facilities, as well as write-offs of assets utilized in affected operations. ''A weaker order outlook over the next several quarters has made this difficult decision necessary,'' said James W. Bagley, chief executive officer for Lam. ''Industry demand for semiconductor equipment has softened as a result of the financial crisis in Asia and the continued depressed pricing environment for DRAM devices. This action will allow us to align our cost structure with prevailing market conditions, enabling us to fund research and development programs critical to our long-term success.'' Lam Research Corporation is a leading supplier of wafer fabrication equipment and services to the world's semiconductor industry. Lam's headquarters are located in Fremont, California. The company's common stock trades on the Nasdaq National Market under the symbol LRCX. Lam's World Wide Web address is lamrc.com. ''Safe Harbor'' Statement Under the Private Securities Litigation Act of 1995: Except for historical information, this press release contains certain forward-looking statements, including, but not limited to, those statements related to the proposed restructuring and its effect on the company's level of profitability. These statements are subject to various risks and uncertainties that could cause results to differ materially, including but not limited to the sufficiency of the size of the restructuring, expansion of the financial crisis to other regions, and other risks detailed from time to time in the company's SEC reports, including the report on Form 10-K for the year ended June 30, 1997 and the Form 10-Q for the quarter ended September 30, 1997. The company assumes no obligation to update the information in this release. ------------------------------------------------------------------------ Contact: Lam Research Corporation Lisa Garber, 510/572-4538 (PR) lisa.garber@lamrc.com Kathleen Bela, 510/572-4566 (IR) kathleen.bela@lamrc.com ------------------------------------------------------------------------ More Quotes and News:Lam Research Corp (Nasdaq:LRCX - news)Related News Categories: computers, household/consumer, semiconductors ------------------------------------------------------------------------ Help ------------------------------------------------------------------------ Copyright c 1998 Business Wire. All rights reserved. All the news releases provided by Business Wire