TEGAL
SELLS THIN FILM ETCH AND PVD ASSETS TO OEM GROUP
Tegal
retains and will continue to sell and support its Deep Reactive Ion Etch
(DRIE)
systems
globally while continuing to pursue strategic alternatives for the
Company
PETALUMA, Calif., March 22, 2010—Tegal Corporation,
(Nasdaq: TGAL) an innovator of specialized production solutions for the
fabrication of advanced MEMS, power ICs and optoelectronic devices, today
announced that it has sold its legacy thin film etch and physical vapor
deposition (PVD) product lines to OEM Group, Inc. for aggregate consideration of
up to $3 million, of which a maximum of $1 million is subject to OEM Group’s
achievement of certain target sales levels.
Tegal
sold to OEM Group the Tegal 900ACS™, 980ACS™, 6500 HRe-™ and
6500 Spectra™ series Thin Film Etch products, along with the Sputtered Films
Endeavor™ and AMS™ PVD series products, intellectual property and process
know-how. OEM Group will bring continued global support to existing
Tegal Thin Film Etch and PVD customers, and will integrate these world
class technologies into their LEGENDS™ offering, which already includes the MRC
Eclipse (PVD), AG Heatpulse® (RTP), Lam AutoEtch™ (Etch), and Varian Sunset
(Implant) platforms.
“OEM
Group is the perfect company for these Tegal products, which represent an
important legacy in semiconductor capital equipment and process technology,”
said Thomas Mika, President and CEO, Tegal Corporation. “We are
pleased that we have been able to place these products and many of the skilled
employees associated with them in a company whose business model is built on the
continued sales, service and support of late life cycle technology into new and
existing customers and markets.”
“We are
honored to continue providing Tegal’s world class Thin Film Etch solutions to
the market; and, with the addition of the Sputtered Films technologies to our
own PVD focus, we believe we will have an unmatched product offering,” said
Wayne Jeveli, President of OEM Group. “Over the course of more than 30 years,
Tegal’s brand has symbolized innovation, quality and customer focus. We believe
these attributes will continue on for many years at OEM Group.”
The sale
of the Thin Film Etch and PVD product lines to OEM Group represents a
significant step in Tegal’s execution of its previously announced pursuit of
strategic alternatives for the benefit of Tegal’s stockholders. While
continuing to evaluate strategic alternatives for the Company, Tegal intends to
continue to sell and support its full range of Deep Reactive Ion Etch (DRIE)
systems that it acquired from Alcatel Micro Machining Systems (AMMS) in
September, 2008. Tegal’s DRIE systems are critical enablers for
etching silicon and dielectric films found in the MEMS, bio-tech, power IC,
optoelectronic, and 3D-IC markets. Tegal DRIE tools are employed in
MEMS foundries and commercial high volume manufacturing lines world-wide, and
can be found in numerous academic and commercial research and development
laboratories throughout the world.
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 Corporation
Tegal is
an innovator of specialized production solutions for the fabrication of advanced
MEMS, power ICs and optoelectronic devices found in products like smart phones,
networking gear, solid-state
lighting, and digital imaging. The Company’s plasma etch tools enable
sophisticated manufacturing techniques, such as 3D interconnect structures
formed by intricate silicon etch, also known as Deep Reactive Ion Etching
(DRIE). Tegal combines proven expertise with practical system strategies to
deliver application-specific solutions that are robust and reliable, and deliver
exceptional process quality and high yields at a lower overall cost of
ownership. Headquartered in Petaluma, California, the company has
more than 35 years of expertise and innovation in specialized technologies, over
100 patents, and an installed base of more than 1900 systems worldwide. Please
visit us on the web at www.Tegal.com.
About OEM Group: OEM
Group provides new and remanufactured front-end equipment to worldwide makers of
Silicon Devices, as well as emerging applications such as MEMS, LED, RFID, Power
Devices, and Photovoltaic. Having completed over 1,300 projects since
1999, OEM Group's proven remanufacturing procedures provide the production
performance and process confidence today’s Fabs require. With the recent
addition of the Tegal 900ACS™-Series and 6500™-Series Thin Film Etch, the
Sputtered Films Endeavor™ PVD, and AMS™ PVD product lines, OEM Group continues
to increase their LEGENDS™ portfolio which also includes the MRC Eclipse (PVD),
AG Heatpulse® (RTP), Varian Sunset [Implant], and Lam AutoEtch™ (ETCH) product
lines.
In
addition to the LEGENDS™ line, OEM Group continues to be the global
remanufacturing leader of systems, chambers, and conversions for the Applied
Materials® Endura®, Centura® and P5000; Mattson Aspen™ II; and Novellus Concept
One® and Two platforms. All Remanufactured systems include installation,
start-up, and warranty support. www.oemgroupinc.com
Tegal
Contact
Thomas
Mika
President
& CEO
Tel: +1
707 765-5630
Email:
tmika@tegal.com
or
The
Blueshirt Group
Chris
Danne
Tel: +1
415 217-7722
OEM
Group Contact
Wayne
Jeveli
President
Tel: +1
480 609 8565
wayne.jeveli@oemgroupinc.com
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