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To: BillyG who wrote (20639)	1/13/1999 6:30:00 PM
From: BillyG	Respond to of 25960

Investment Specialist Foresees Consolidations Ahead In The Semiconductor Capital Equipment Industry PEBBLE BEACH, Calif.--(BUSINESS WIRE)--Jan. 13, 1999--Wall Street thinks that there are consolidations ahead for companies in the semiconductor equipment and materials industry. At least that was the view of panelists who spoke at the 22nd annual SEMI-Industry Strategy Symposium (ISS), which concluded here today on the Monterey Peninsula. One panelist, investment executive Jim Davidson of San Francisco-based Hambrecht & Quist, predicted mergers and acquisitions in the future, despite a recent uptick in sales for the industry. "I think the capital equipment industry is going to consolidate," said Davidson. "The industry is maturing, and it will consolidate around the market leaders." Yet, many small companies will continue to be leaders in technical innovation. Despite his outlook, he thought the overall picture was one of expansion. "It's still a growth industry," said Davidson. He and the other panelists agreed that mergers signal a maturing industry that still have very positive growth prospects for investors. The long-term prospects are positive because silicon processing and materials are the foundation of today's technology-based economy. The so-called "Bulls and Bears" panel was chaired by Rick Hill, chief executive at Novellus Inc., one of the largest capital equipment companies in Silicon Valley. The other panelists included Chris James from Dawson Samberg, Erin Niehaus from Bowman Capital Management, and Paul Wick, from Wall Street investment house J & W Seligman. The bears and bulls among participants appeared divided on the long-term outlook for the industry, which supplies the tools used to make computer chips and other processors. While SEMI-ISS participants were eager to hear about trends in their own industry, they were also eager to glean information about the overall technology industry. Technology stocks have been booming, especially Internet-related issues. Davidson noted while the technology sector has exploded, most of the fireworks have been concentrated in only the top 10 percent of the 1,200-1,400 technology firms publicly traded in the United States. He said those top stocks are trading at 110 times trailing revenues. The rest are trading at 3 times trailing revenue. "They are going to write economic textbooks about this market," he said. Meanwhile, Neihaus said many capital equipment companies are driven by the personalities of their leaders, not necessarily their products and services. "Technology is big, but management makes the technology work," she said. "It's a personality-driven industry, and personalities dictate the direction of the companies." She and her fellow participants agreed that the best companies in the industry are those that are well-managed with an eye toward surviving the ups and downs of the market. SEMI-ISS is sponsored by the Semiconductor Equipment and Materials International (SEMI), the global trade association representing the semiconductor equipment industry's capital equipment and flat-panel display makers. Close to 300 participants attended SEMI-ISS at the Inn at Spanish Bay resort. The attendees represent some of the big names in technology, such as IBM Corp., Intel Corp., Motorola and Texas Instruments. The event is viewed as one of the most important forecasting events for the industry, and gives participants and presenters a chance to compare notes on their outlook for the new year. Based in Mountain View, Calif., SEMI serves more than 2,300 companies participating in the $65 billion semiconductor and flat panel display equipment and materials market. SEMI maintains offices in Austin, Beijing, Boston, Brussels, Hsinchu, Moscow, Seoul, Singapore, Tokyo and Washington, D.C. Visit SEMI online at www.semi.org. CONTACT: SEMI Bruce Lewis, 510/219-7998