Formation of World's Leading Advanced Packaging Group: Datacon Business Group Merges With BE Semiconductor Industries N.V. - Besi

Business Wire, Nov 11, 2004

RADFELD, Austria -- BE Semiconductor Industries N.V. (Besi), a well established manufacturer of assembly equipment for the semiconductor industry, and Datacon Technology AG (Datacon), expert in microchip assembly platforms (die bonders), announced today that both business groups will merge to form a leading global advanced packaging supplier. Besi will take over 100% of Datacon's shares, in return for which Datacon shareholders will receive 90% cash as well as shares from Besi. The purchase price in Euros was just below the three-figure millions - incl. the net financial liabilities. The negotiations with Besi, which is listed on the technology stock exchange NASDAQ and on Euronext, are in the final stages. The merger is likely to take place in January next year, once all antitrust and other formal matters have been clarified.

Datacon's management had been looking for some time for a way to safeguard the company in the long term because, although successful, it operates in a highly volatile market. Helmut Rutterschmidt, president of Datacon Technology AG, explains the decision: "Although Datacon is highly profitable and the leader in market segments such as flip chip technology, in global terms it is not one of the major key players in the international semiconductor equipment market. To persistently strengthen our competitive position and to safeguard jobs in the long term, also in down turns, we need to significantly increase our financial power. We took plenty of time to search for a strategic investor and were very careful to find a solution which also guarantees the maximum possible autonomy for Datacon. In Besi, a European company of comparable size and European corporate culture, which also operates in the back-end sector of the semiconductor industry, we have found the ideal partner."

Besi and Datacon have a common customer portfolio and complement each other ideally in their packaging solutions, with virtually no overlaps. As well as the increasing size of the enterprise and the accompanying increase in financial power of the resulting European back-end group, customers will be able to access a bigger product portfolio and will benefit from the exchange of know-how with the corporate group. For customers there will be no change in contacts at the two companies.

Board member Gerhard Zeindl adds: "Our aim is by no means the complete disappearance of Datacon into the overall group, but a large degree of autonomy for Datacon within the group. The "Datacon" name and brand will be retained, as will the global corporate structure with our subsidiary companies. Consequently, there will be no significant changes in the operative business as a result of the merger. On the contrary, we are expecting the considerably larger range of products and solutions available to our customers from a single source to lead to a surge of growth in the new group. Helmut Rutterschmidt and I will be represented in the Besi management and will crucially help control the fortunes of the group."

The Datacon board will in future have a joint chairmanship of Helmut Rutterschmidt and Gerhard Zeindl. Datacon's co-founder, Karl Schweitzer, is withdrawing from the senior management and, as a technological consultant, will continue to play a key role in the research division.

Datacon was advised on this transaction by Dr. Ferber & Partner GmbH and the lawyers of Ullmann, Geiler & Partner.

About Datacon

Datacon was founded in 1986 in the Austrian Tirol by Karl Schweitzer and Gerhard Zeindl. In 1995 Helmut Rutterschmidt joined the company as the third managing partner. The internationally operating group of companies is involved in the development and production of high-precision equipment for the semiconductor industry. Datacon employs some 440 staff worldwide, approximately 100 of whom work in research and development. Datacon's customers include international corporations such as Bosch, Fairchild, Siemens and Infineon, ST Micro, Skyworks as well as Asian subcontractors like Amkor, ASE and STATSChipPACK.. Around 10 years ago Datacon broke new ground in the semiconductor industry with a unique concept of a machine platform. Today Datacon is one of the leading and most innovative suppliers in the industry and the world's leader in flip chip technology.

For more information about Datacon visit www.datacon.at

About BE Semiconductor Industries N.V.

Besi designs, develops, produces, markets and maintains die-sorting, flip chip die-attach, molding, trim and form, singulation and plating systems for the semiconductor industry. Besi customers are leading American, European, Asian, Korean and Japanese semiconductor manufacturers and suppliers.

For more information about Besi visit www.besi.nl