SUSS MicroTec Acquires Leading Precision Photomask Manufacturer

Munich, Germany--March 21, 2001--SUSS MicroTec has acquired Image Technology Inc., Palo Alto, California, a supplier of precision photomasks for optical lithography. Photomasks are high precision glass plates containing microscopic images of electronic circuits and are used as masters by semiconductor manufacturers to optically transfer these images onto silicon wafers. Photomasks are a key enabling technology in any semiconductor production. Image Technology, Inc. specializes in large area precision photomasks for advanced packaging, micro electro mechanical systems (MEMS) and opto-electronic applications taking advantage of full field lithography used in mask aligners, the main product of SUSS MicroTec.

Image Technology was founded in 1963 and achieved total sales of $4.24 million US and a double-digit pre tax profit margin in fiscal year 2000 (ending September 30, 2000). The acquisition will be financed using 343,256 shares out of the authorized capital of Suss MicroTec AG, holding company SUSS MicroTec. Both parties have agreed on a lock up period of six (6) months for 50 percent of the shares and one (1) year for the remaining 50 percent of shares.

"Image Technology, Inc. has become the brand for precision photomasks used in advanced packaging applications. According to Electronic Trends Publications the advanced packaging market (CSPs and wafer level packages) will experience significant growth throughout the next several years (expected CAGR is -71.8 percent for the next 2 years). In anticipation of this growth, the industry is looking for comprehensive production solutions rather then purchasing individual production tools and trying to integrate them into a production line. In response to this demand, SUSS MicroTec and Image Technology along with Unaxis (EBSchweiz: UNAX), Semitool (Nadasq: SMTL) and the Fraunhofer Institute IZM have founded the Semiconductor Equipment Consortium for Advanced Packaging (SECAP) a consortium to support the industry's move to adapt new packaging technologies.

Dr. Franz Richter, CEO and president of SUSS MicroTec said: "Because wafer-level packaging is at the back end of the production cycle, the investment in patterned wafers is significant, making precision photomasks a critical factor in the advanced packaging process. As leading semiconductor manufacturers continue to migrate from 200 mm to 300 mm wafers utilizing mask aligners for full field lithography for their advanced packaging production, the ability to offer high quality precision photomasks together with our mask aligners is very important to Suss and our customers. With the acquisition of Image Technology Inc. we are taking another step in the direction of offering a total system solution to our customers."