Entegris' One-Two Punch Delivers Third Quarter 2002 Profitability; Pro Forma Earnings Per Share Improve 6 Cents From Previous Quarter

Business Wire, June 24, 2002

Business Editors

Entegris, Inc. (Nasdaq:ENTG):

Financial Highlights:

-- Reorganized Entegris to better serve markets including Semiconductor, Data Storage, Life Sciences, Service, and a new market to be announced during the fourth quarter.

-- Opened newly upgraded facility in Gilroy, California, designed to clean products that protect and transport critical materials for the microelectronics and medical industries.

-- Held second annual Materials Integrity Management Symposium drawing over 100 industry leaders.

-- Signed long term service contract with Phillips Semiconductor; received orders for bio/pharmaceutical applications from a subsidiary of Solvay S.A.; converted two Fabs to Entegris PEEKTM-based wafer carriers; and received exclusive contract with leading supplier to the semiconductor industry for 300mm Front Opening Unified Pods (FOUPs).

Quarterly Highlights:

-- Reorganized Entegris to better serve markets including Semiconductor, Data Storage, Life Sciences, Service, and a new market to be announced during the fourth quarter.

-- Opened newly upgraded facility in Gilroy, California, designed to clean products that protect and transport critical materials for the microelectronics and medical industries.

-- Held second annual Materials Integrity Management Symposium drawing over 100 industry leaders.

-- Signed long term service contract with Phillips Semiconductor; received orders for bio/pharmaceutical applications from a subsidiary of Solvay S.A.; converted two Fabs to Entegris PEEKTM-based wafer carriers; and received exclusive contract with leading supplier to the semiconductor industry for 300mm Front Opening Unified Pods (FOUPs).

Entegris' one-two punch of lowering costs and increasing efficiencies resulted in a return to profitability.

Entegris, Inc. (Nasdaq:ENTG), the materials integrity management company, today reported quarterly revenues of $59.7 million for its third quarter ended June 1, 2002 and a net income of $5.2 million, or 7 cents per diluted share. This compares to $81.3 million in revenue and a net income of $8.4 million, or 12 cents per diluted share for the same period last year.

"I am incredibly proud of team Entegris and its ability to adjust to rapidly changing industry conditions," said Jim Dauwalter, Entegris president and chief executive officer. "During the quarter we had to ramp production quickly. Sales for our unit driven products, which are driven by wafer starts and chemical consumption, continued to improve and sales for products driven by our customers' capital spending significantly increased as well.

"In the third quarter, we recorded the full benefit of our one-two punch strategy of lowering costs and increasing manufacturing efficiencies," continued Dauwalter. "Gross margins increased by an unprecedented 13.7 percentage points as sales improved. We executed on our cost initiatives, anticipated our customers' needs and continued to work closely with our customer base across all segments of our high-technology markets. This combined with our strong market position as the leader in materials integrity management helped generate these strong results."

Sales improved from the second quarter 2002 to the third quarter 2002 by 17.8 percent from $50.7 million to $59.7 million. The second quarter net loss of $1.4 million or 2 cents per share compares to a pro forma net income of $2.8 million or 4 cents per share during the third quarter 2002. Third quarter 2002 results include a pre-tax benefit of $1.6 million related to the reversal of previously accrued costs associated with certain plant closures. Also recorded in the third quarter 2002 was a $1.4 million tax benefit related to the treatment of earnings of certain non-US subsidiaries.

Outlook

"I am confident that with our seasoned Entegris team and our long-term relationships with our worldwide customers, we will achieve our 36th consecutive annual year of profitability," said Dauwalter. "Industry conditions remain challenging. Yet, we do anticipate improving sales during our fourth quarter 2002 to about $62 to $66 million with marginally improving gross profit margins."

Balance Sheet/Cash Flow Statement Discussion

Cash, cash equivalents and short-term investments at the end of third quarter 2002 totaled about $108 million. The company generated $2 million from operations during the quarter. Inventories were $39 million, about flat with second quarter 2002. Accounts receivable increased by $7.6 million to nearly $40 million from the second to the third quarter 2002, which is in-line with expectations during periods of increasing sales.

Third Quarter Earnings Release Conference Call Details

Investors have the opportunity to listen to the conference call today at 4:30 p.m. EDT over the Internet at http://www.entegris.com. To listen to the live call, listeners may go to the website at least 15 minutes early to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the call.