Tuesday, January 12, 2010

Company Contact
Paul Werbaneth
Vice President - Marketing
[T] (707) 763-5600
info@tegal.com

Agency Contact:
Chris Danne
The Blue Shirt Group
[T] (415) 217-7722

Tegal precision photoresist descum tools enable quick-turnaround scaling of magnetic data head fabrication to address renewed consumer demand for desktop and notebook PC storage

PETALUMA, Calif., January 12, 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 received a repeat order for a 981ACS plasma etch system from a leading hard disk drive manufacturer to support a critical capacity expansion for magnetic data storage device fabrication.  The new Tegal 981ACS unit adds to the customer’s extensive installed base of Tegal 900 Series plasma etch systems already being used for precision photoresist descum applications in high volume manufacturing. 

As reported by the market analysis firm The Information Network, there is currently a widespread shortage of 3.5-inch hard drives (HDD), which are used primarily in desktop PCs. HDD suppliers have already increased production of the 2.5-inch HDDs used in notebooks; however, the shortage of desktop hard drives may persist into the middle of 2010 and will result in price increases. 

HDD manufacturers are responding by increasing HDD production capacity as rapidly as possible in order to address the supply and demand imbalance.

According to John Almerico, Senior Marketing Director for Etch Products at Tegal, “The Tegal 981ACS has demonstrated time and again that it can reliably perform the extensive number of precision photoresist descum and trim operations required to make leading-edge magnetic data storage products.  We will be able to rapidly deliver and commission this additional 981ACS tool for our HDD customer so that our customer can take complete advantage of the current favorable situation in the magnetic data storage market.”

The Tegal 981ACS is the latest in a series of diode plasma etch systems produced by Tegal, the industry pioneer in commercial single-wafer plasma etching.  Over 1,500 systems in the 900 Series have been shipped to date, providing reliable and cost-effective support for a wide range of plasma etch processes.  The Tegal 900ACS Series is optimized for precision photoresist descum, non-selective nitride, backside, and planarization etching, as well as for oxide, nitride, poly, and compound materials applications for TFH, HB-LED, MEMS, power device, and optoelectronic device fabrication.  The 900ACS Series platform incorporates a production-proven transport system that can accommodate 75 mm to 200 mm round, square or rectangular substrates.
 

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 and deposition 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.