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To: KM who wrote (7236)	9/16/1998 10:57:00 PM
From: MileHigh	Respond to of 93625

Wednesday September 16, 5:17 pm Eastern Time Company Press Release DuPont Photomasks Indicates Lower FY99 First Quarter Earnings Announces Delay in Completing Oregon Production Facility ROUND ROCK, Texas--(BUSINESS WIRE)--Sept. 16, 1998--DuPont Photomasks, Inc. (NASDAQ: DPMI - news), commonly referred to as DPI, today indicated that slowing levels of business and pricing pressures will result in lower revenues and substantially reduced earnings for fiscal 1999's first quarter, versus Wall Street consensus estimates. The company cited the prolonged slowdown in the semiconductor industry and excess capacity in the photomask industry as principal factors in its profitability decline. In addition, the company announced it will delay the final construction phase of its Gresham, Oregon, production facility as part of an overall corporate plan to manage costs and capacity in line with the current market weaknesses. The building shell of the Oregon facility is complete. When market conditions improve in the Pacific Northwest, DPI anticipates it would take less than six months to begin production of photomasks there. J. Michael Hardinger, chairman and chief executive officer of DuPont Photomasks, noted that customer demand has weakened. He estimated that first quarter revenues could drop as much as 6 to 10 percent below the same quarter last year, resulting in anticipated per share earnings of $0.19 to $0.24 versus the Wall Street consensus estimate of $0.39. ''Our industry traditionally experiences seasonal demand softness in July and August,'' Hardinger said, ''but continued downward pressure on pricing across most of our product line and a stagnant market environment has eliminated the September upturn we normally see. In a capital-intensive business such as ours, it is difficult to maintain historical margins in the face of an industry-wide downturn that has created excess photomask capacity and intense pricing pressure.'' ''Given this environment, we are aggressively managing costs at all levels of the business,'' Hardinger continued. ''In addition to delaying the Oregon plant completion, we intend to tightly control headcount and purchases of materials and services, as well as to critically review all capital plans to improve cash flow and earnings.'' ''Times are very tough in the semiconductor industry right now,'' Hardinger said. ''But our global capabilities and technological leadership will enable us to solidify our leading market position as we manage through this downturn.'' ''We remain positive about the long-term outlook for the industry and our company,'' Hardinger said. ''Eventually, excess capacity will rationalize, and our current actions will ensure continued leadership in the industry.'' DPI is the world's largest photomask manufacturer, operating globally from ten strategically located facilities in North America, Europe and Asia. The company produces and supplies photomasks as well as photoblanks (photomask substrates) and pellicles (protective covers for photomasks). Headquartered in Round Rock, Texas, DPI posted worldwide sales of over $271 million in fiscal 1998. The company maintains a Web site at www.photomask.com. Note: This release includes forward-looking statements based on management's current plans and expectations. Such statements involve risks and uncertainties which may cause future activities and results of operations to differ from those suggested, including risks associated with industry trends, international currency fluctuations, capacity utilization issues and the need to manage growth. For additional information, please refer to DPI's filings with the Securities and Exchange Commission, specifically the company's most recent Forms 10-K dated September 15, 1997 and 10-Q dated May 12, 1998, which identify important risk factors that could cause actual results to differ from those contained in the forward looking statements. Results for interim periods are not necessarily indicative of results for the year.