FSI International Announces That the Court Affirms the Judgment in the

    Business Editors/High-Tech Editors

    MINNEAPOLIS--(BUSINESS WIRE)--Feb. 18, 2005--FSI International, Inc. (Nasdaq:FSII), a manufacturer of capital equipment for the microelectronics industry, today announced that the California Court of Appeal issued an opinion affirming in substantial part a judgment in court litigation arising out of the Company's 1996 acquisition of Semiconductor Systems, Inc. ("SSI").
    The Court of Appeal upheld a damage award to Eric Hsu, a former shareholder of SSI, whose stock in SSI was acquired by other shareholders of SSI prior to SSI's merger with the Company. The Court of Appeal also held that no punitive damages were awardable and reduced the amount of court costs for which SSI is responsible.
    The total judgment, together with post judgment interest and attorneys' fees as of the date of the Court of Appeal's decision, is approximately $7.9 million. As a result of the court's ruling, the Company will record a $2.2 to $2.4 million charge in the second quarter of fiscal 2005.
    In January 2002, the Company entered into a settlement fund agreement with the former SSI shareholders. They placed approximately $1.6 million and 250,000 shares of FSI Common Stock in escrow to be used to pay the final judgment. Under the terms of the settlement fund agreement, the Company will be responsible for payment of the judgment against SSI and its shareholders. Therefore, the Company would use $5.2 to $5.4 million of its own cash to satisfy the judgment.
    The Company will discuss the Court of Appeal's decision in more detail during its second quarter earnings conference call on March 22, 2005.

    FSI International Inc. is a global supplier of surface conditioning equipment technology and support services for microelectronics manufacturing. Using the Company's broad portfolio of cleaning products, which include batch and single-wafer platforms for immersion, spray, vapor and CryoKinetic technologies, customers are able to achieve their process performance, flexibility and productivity goals.
    The Company's support services programs provide product and process enhancements to extend the life of installed FSI equipment, enabling worldwide customers to realize a higher return on their capital investment.

    FSI maintains a Web site at http://www.fsi-intl.com.

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CONTACT: FSI International, Inc., Minneapolis Trade Media: Laurie Walker, 952-448-8066 or Financial Media and Investors: Benno Sand, 952-448-8936

KEYWORD: CALIFORNIA MINNESOTA INDUSTRY KEYWORD: HARDWARE CHEMICALS/PLASTICS MANUFACTURING CLASS ACTION LAWSUITS SOURCE: FSI International, Inc.

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