Tegal Receives Additional Order From a Major European-Based Device Manufacturer for Advanced Plasma Etch Systems

Business Wire, June 21, 2007

Multiple System Order for Cell Phone Device Production in Asia

SAN JOSE, Calif. -- Tegal Corporation (NASDAQ:TGAL) today announced that a major European integrated device manufacturer had placed another order with the Company for three additional new 6540 advanced plasma etch systems. The 6540 systems, directed at an application that enables the production of high-K, de-coupling capacitors incorporated into cell phones and other wireless devices, will be installed in a production facility in Asia over the next several months.

"This multiple system order comes on top of the three system order that we announced last month," said Thomas Mika, President and CEO of Tegal. "As demand for these unique devices continues to grow among cell phone manufacturers worldwide, production is ramping quickly. We are re-doubling our efforts to deliver and support our unique process technology in a demanding, high volume manufacturing environment. And, more than ever, we will continue to maintain a company-wide commitment to the success of this project for our customer."

"Tegal has developed significant, patented technology, along with unique process know-how in the area of high-K dielectrics and non-volatile metals," said Vahan Tchakerian, Tegal's Vice President of Global Sales. "Such materials are increasingly important for meeting the size, integration, and power requirements of devices incorporated into a wide range of wireless products. PZT, used here for its outstanding performance in electrostatic discharge protection circuits, also has important applications when it is used for its piezoelectric properties, as a piezoelectric MEMS actuator in ink jet print heads, for example, or as a piezoelectric MEMS sensor in acoustic microphones and pressure sensing devices. As a ferroelectric material, PZT is well known for being the basis of commercial FeRAM chips, and for other novel memory storage products."

The Tegal 6540 is a high-density plasma etch tool featuring the unique HRe-[TM] reactor, and Tegal's patented dual-frequency RF power technology and magnetic plasma confinement. The system is a critical enabler for etching noble metal electrode and capacitor materials, including PZT, as well as other ferroelectric, magnetic, high-K dielectric, compound semiconductor and interconnect materials.

Tegal will conduct a conference call following the release of its financial results for the fourth quarter and the full fiscal year 2007 (which ended on March 31, 2007) at 5:00pm EDT (2:00pm PDT) on Wednesday, June 27, 2007. The dial-in numbers for the conference call are (866) 271-0675 or (617) 213-8892. Investors should reference passcode 40914495.

Tegal will also be holding its Annual Meeting of Stockholders in San Jose, California, on Tuesday, September 18, 2007 at 10:00am PST, at which several matters will be subject to a stockholder vote. Stockholders of record as of July 18, 2007 will be entitled to vote by proxy or in person at the meeting.

Safe Harbor Statement

Except for historical information, matters discussed in this news release contain forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements, which are based on assumptions and describe our future plans, strategies and expectations, are generally identifiable by the use of the words "anticipate," "believe," "estimate," "expect," "intend," "project" or similar expressions. These forward-looking statements are subject to risks, uncertainties and assumptions about the Company including, but not limited to industry conditions, economic conditions, acceptance of new technologies and market acceptance of the Company's products and services. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements in this paragraph. For a further discussion of these risks and uncertainties, please refer to the Company's periodic filings with the Securities and Exchange Commission.

About Tegal

Tegal provides process and equipment solutions to leading edge suppliers of advanced semiconductor and nanotechnology devices. Incorporating unique, patented etch and deposition technologies, Tegal's system solutions are backed by over 35 years of advanced development and over 100 patents. Some examples of devices enabled by Tegal technology are energy efficient memories found in portable computers, cell phones, PDAs and RFID applications; megapixel imaging chips used in digital and cell phone cameras; power amplifiers for portable handsets and wireless networking gear; and MEMS devices like accelerometers for automotive airbags, microfluidic control devices for ink jet printers; and laboratory-on-a-chip medical test kits.

For more information about Tegal Corporation, visit: www.tegal.com.