TEGAL CORPORATION REPORTS Q2 FISCAL YEAR 2012 FINANCIAL RESULTS

November 10, 2011

Petaluma, Calif., November 10, 2011 — Tegal Corporation (NASDAQ: TGAL) today announced financial results for the Second Quarter of Fiscal Year 2012, which ended September 30, 2011.

Financial Statement Highlights

• The Company’s Net Loss per share in the Second Quarter of Fiscal Year 2012 was ($0.28), compared with $0.08 in the Second Quarter of the prior fiscal year, and ($0.59) in the First Quarter.
• Tegal recorded a Net Loss of ($476,000) in the Second Quarter of Fiscal Year 2012.  The Company recognized its proportionate share of Sequel Power’s operating loss of ($530,000) in the Second Quarter of Fiscal Year 2012.
• Tegal ended the Second Quarter of Fiscal Year 2012 with approximately $6.7 million in cash (including restricted cash).

Business Highlights

Tegal and Sequel Power, its portfolio company dedicated to the development and operation of large scale photovoltaic (PV)-based solar utility projects, achieved numerous milestones recently, including:

• Tegal extended the bid deadline for the IP portfolio for its Nanolayer Deposition Technology (NLD™) after several IC and semiconductor equipment manufacturers expressed interest.  The portfolio includes over 35 US and international patents in the areas of pulsed-CVD, plasma-enhanced ALD, and NLD™.
• Sequel Power established a strategic alliance with Table Rock Capital (TRC), an independent private equity fund manager focusing on investments in infrastructure assets located in the U.S. and other OECD countries. TRC, which has financed, developed and managed more than 200 large-scale energy projects, is focusing initially on Sequel Power’s projects in the Americas.
• Sequel Power was a sponsor and a participant at last month’s Solar Arabia Summit at King Saud University in Riyadh, Saudi Arabia.  The invitation-only event brought together leading policy-makers, government officials, investors and businesses involved in Saudi Arabia’s $100-billion program designed to produce several gigawatts of solar-generated power by 2020.
• Sequel Power recently opened offices in Buenos Aires, Argentina, and Santiago, Chile.   The offices serve Sequel Power’s customers and partners in South America and are overseen by Prince Alexander von Sachsen, Sequel Power’s Chairman of South America and Middle East/Africa.

“Tegal is executing on its plan both to support Sequel Power’s efforts and to partner with other businesses and industries which have extraordinary growth potential,” said Thomas Mika, President and Chief Executive Officer of Tegal.  “We are confident in our ability to establish a growth platform that optimizes the value of Tegal’s publicly traded stock, balance sheet and management team.”

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, market acceptance of the Company's products and services, the Company’s exploration and execution of strategic alternatives.  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

Since its founding in 1972, Tegal Corporation has been dedicated to the development and application of emerging technologies.  Often on the forefront of major inventions, Tegal’s process and capital equipment know-how enabled the development and manufacturing of leading-edge devices – from early microprocessors to advanced memory and LEDs, as well as to newest filtering and sensing devices that are present in the most advanced smart phones. Through its recent investment in sequel Power, Tegal is engaged in the promotion of solar power plant development projects worldwide and other renewable energy projects.  In addition, Tegal is actively evaluating opportunities for partnerships with other diversified technology-based companies in order to exploit our shared experience and to enhance our value as a public company.  Tegal is headquartered in Petaluma, California.  Please visit us on the web at www.Tegal.com.