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To: Proud_Infidel who wrote (22063)5/20/1999 12:05:00 PM
From: Darryl Olson  Respond to of 25960
 
Ultratech Introduces New-Generation Stepper Family for
Advanced Thin-Film Head Production; XLS 9000-Series
Platform Tailored for Advanced TFH Lithography

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Updated 8:34 AM ET May 18, 1999

SAN JOSE, Calif. (BUSINESS WIRE) - Ultratech
Stepper, Inc. (Nasdaq NM:UTEK), a leading supplier
of photolithography systems used to manufacture
semiconductors, micromachining devices and thin film
heads (TFH) for disk drives, today announced the
introduction of its new XLS 9000-series stepper family.

Incorporating the Model 9800 and its higher-resolution counterpart, the Model
9900, the new reduction steppers will be used for the fabrication of advanced thin
film heads and will offer improved performance with reduction lenses
recently-developed by Minolta and Tropel Corporation.

Based on the production-proven XLS 7000-series steppers, the new-generation
systems will provide the lithography solutions required for the most advanced read
and write structures currently in production with additional capability for future
product requirements.

The past several years have seen rapid technology development in the disk drive
industry as disk makers have dramatically improved their products while controlling
costs.

According to recent reports from Peripheral Research Corporation, data storage
density has sustained an annual growth rate of 60 percent this past decade -- largely
fueled by the lithography used to manufacture magneto-resistive (MR) and more
recently giant-magneto-resistive (GMR) heads.

President and Chief Operating Officer Dan Berry noted that the introduction of the
XLS stepper family demonstrates Ultratech's continuing commitment to the thin film
head industry.

"Ultratech has provided lithography solutions to thin film head manufacturers for 10
years, and the new steppers round out our product line by adding reduction
lithography with resolution down to 0.25 microns," said Berry. "The platform has
been extensively updated by our engineering team and retains the high-reliability and
ease-of-use demonstrated by previous XLS products."

In 1998, Ultratech Stepper acquired the assets of Integrated Solutions, Inc., which
provided the core technology for i-line and deep ultraviolet (DUV) reduction
steppers. Development of the XLS stepper family was originally funded by
SEMATECH, with the organization's members contributing to the design and user
interface.

The new 4-to-1 reduction lens in the XLS 9800 was developed by Minolta and
delivers 0.35-micron resolution. The XLS 9900 utilizes a Tropel Corp. DUV lens
with a Cymer excimer laser source and offers 0.25-micron resolution. Both lenses
provide imaging across a 31.1 mm diameter field, covering a maximum square field of
22 mm and a maximum rectangular field extent of 27.6 mm.

Job-controlled variable numerical aperture and partial coherence enables the imaging
to be optimized for a range of conditions, such as thin and thick resist processes. A
high-precision wafer stage, coupled with low-lens distortion, provides the colinearity
needed to control the throat and stripe height of GMR thin film heads.

The reticle library for the XLS 9000-series has been expanded to handle up to 24
reticles of the standard 6-inch format. The user console has been integrated into the
stainless steel chamber, further improving fab space utilization. The stepper is
controlled by an intuitive graphics interface via a 17-inch touch-screen flat panel
display.

Rapid self-calibration of key functions such as focus, overlay and dose, eliminates the
need for time-consuming send-ahead wafers.

The XLS models will be available for shipment in the third quarter of 1999.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:
Certain of the statements contained herein may be considered forward-looking
statements that involve risks and uncertainties, such as the cyclicality in the thin film
head and semiconductor industries, delays, deferrals and cancellations of orders by
customers, pricing pressures, competition, lengthy sales cycles for the company's
systems, ability to volume-produce systems and meet customer requirements, the mix
of products sold, dependence on new product introductions and commercial success
of any new products, integration and development of the UltraBeam and Verdant
operations, manufacturing inefficiencies and absorption levels, risks associated with
introducing new technologies, adjustments relating to the potential change in
accounting for the ISI acquisition, the failure to develop and commercialize the ISI
products, inventory obsolescence, economic and political conditions in Asia, delays
in collecting accounts receivables, extended payment terms and changes in
technologies. Such risks and uncertainties are set forth in the company's SEC reports,
including the company's Annual Report on Form 10-K for the period ended
December 31, 1998.

About Ultratech: Founded in 1979, Ultratech Stepper, Inc. designs, manufactures
and markets photolithography equipment used worldwide in the fabrication of
integrated circuits, micromachining devices, thin film heads for disk drives and
photomasks for the semiconductor industry.

The company produces products that substantially reduce the cost of ownership for
manufacturers in the electronics industry. The company's home page on the World
Wide Web is located at ultratech.com

Contact: Ultratech Stepper, Inc. Laura Rebouche, 408/321-8835 email:
lrebouche@corp.ultratech.com or MCA, Inc. Jane Evans-Ryan, 650/968-8900 email:
jryan@mcapr.com