Ultratech Introduces New-Generation Stepper Family for Advanced Thin-Film Head Production; XLS 9000-Series Platform Tailored for Advanced TFH Lithography

Business Wire, May 18, 1999

SAN JOSE, Calif.--(BUSINESS WIRE)--May 18, 1999--

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 http://www.ultratech.com