TEGAL SECURES MEMS TOOL ORDERS FOR DRIE AND ALN PVD SYSTEMS

PETALUMA, Calif., June 25, 2009—Tegal Corporation, (Nasdaq: TGAL) an innovator of specialized production solutions for the fabrication of advanced MEMS, power ICs and optoelectronic devices, today announced it has received orders for a Tegal 110 DE/SE DRIE tool and for a TEGAL SMT AlN PVD system from two prominent research centers currently equipping state-of-the-art laboratory facilities.  The DRIE tool will ship to a customer in South East Asia, who will use the tool for research in microsystems, microfluidics, and MEMS sensor applications, while the AlN PVD system will ship to a North American customer for research activities in the RF MEMS and piezoelectric sensor and actuator fields.

In both instances, the orders from these first-time Tegal customers were secured following a competitive bidding process.

The Tegal 110 DE/SE system is a high-density plasma etch tool featuring an inductively coupled plasma etch reactor and magnetic plasma confinement. The tool can run Tegal’s patented SHARP – Super High Aspect Ratio Process, achieving etched feature aspect ratios of > 100:1 in production environments.  Together with its high reliability, broad process windows, and high etch rates, the Tegal 110 DE/SE system is a critical enabler for etching silicon (SE) and dielectric (DE) films found in the MEMS/MOEMS, bio-tech,  and hi-voltage markets.  Tegal 110 DRIE tools are presently employed in numerous research and development laboratories throughout the world, engaging in both commercial and academic research programs.

The Tegal SMT PVD system is a single module PVD tool optimized for high quality reactive sputtering of piezoelectric aluminum nitride (AlN) films for electro acoustic devices such as BAW and FBAR filters (RF MEMS) and for other piezoelectric sensor and actuator applications. The system features a unique implementation of the Tegal dual cathode S-Gun™ magnetron source specifically optimized for the most demanding film thickness uniformity, stress, and crystal orientation specifications in the PVD industry.  Along with providing AlN PVD equipment under the Tegal SMT and Tegal Endeavor product families, Tegal has been supporting the AlN community by offering high quality AlN foundry services in its San Jose, CA PVD Demonstration Laboratory.

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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.