Tuesday, July 12, 2005

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Frank Nagle or Bob Ferri
Nagle and Ferri Investor Relations
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Tegal also installs and upgrades an advanced etch system at a prestigious European R&D institute for MEMS development

Tegal Corporation (Nasdaq: TGAL), a leading designer and manufacturer of plasma etch and deposition systems used in the production of integrated circuits and nanotechnology devices, today announced that a major European integrated device manufacturer that had previously placed a multiple system order with Tegal has increased the order to include additional 6540 advanced etch systems.  The systems will be used in the production of high-K decoupling capacitors incorporated into cell phones and other wireless devices.
 
In an unrelated announcement, Tegal said that they had installed, upgraded and added a second process module to a 6500 advanced plasma etch system at the Instituto Trentino di Cultura (ITC) - Instituto per la Ricerca Scientifica e Tecnologica (IRST), a prestigious Italian R&D institute.  IRST was created about 20 years ago as a private / public cooperative, and today works extensively in the area of micro electrical mechanical systems (MEMS) devices.  The 6500 advanced etch system will be used for R&D and for the production of small lots of prototype devices.
 
“The unique ability of our advanced 6540 etcher to handle difficult-to-etch materials makes it an ideal choice for wireless device makers worldwide,” said Steve Selbrede, Vice President and Chief Technology Officer of Tegal Corporation. “High-K materials are increasingly being used in multi-chip module and system-on-chip devices in order to isolate or decouple the chip frequencies from surrounding noise.  We have been working with several types of high-K materials for many years and have unique, patented technology to address the many problems encountered in the etching of these devices.”
 
“Our long relationship with this customer continues to strengthen,” said Thomas Mika, President and CEO of Tegal.  “We are gratified to be included in both their production lines as well as in some of their most advanced development programs.” 
 
The Tegal 6540 is a high-density plasma etch tool featuring the unique HRe^–™ reactor, and Tegal’s patented dual-frequency RF power technology and magnetic plasma confinement.  The system is a critical enabler for etching new materials such as noble metal electrodes and capacitor structures, as well as ferroelectric, high-K dielectric, compound semiconductor and interconnect materials.
 
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
 
Tegal provides process and equipment solutions to leading edge suppliers of advanced semiconductor and nanotechnology devices.   Incorporating unique, patented etch and deposition technologies, Tegal’s system solutions are backed by over 35 years of advanced development and over 100 patents.  Some examples of devices enabled by Tegal technology are energy efficient memories found in portable computers, cellphones, PDAs and RFID applications; megapixel imaging chips used in digital and cellphone cameras; power amplifiers for portable handsets and wireless networking gear; and MEMS devices like accelerometers for automotive airbags, microfluidic control devices for ink jet printers; and laboratory-on-a-chip medical test kits.

More information is available on the Internet at: www.tegal.com.