Tegal Receives Repeat Silicon DRIE Tool Order From Japan Home Market Customer

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 a repeat order for a Tegal 200 SE DRIE tool from a leading Japanese provider of MEMS devices. The Tegal 200 SE DRIE tool will ship in the current quarter, and will be used by the customer to rapidly increase production output of commercial MEMS products.

This repeat DRIE system order for Tegal was secured as a result of the continued successful cooperation between Tegal and Canon Marketing Japan, Tegal’s sales partner in Japan for the Tegal DRIE product line.

"Tegal is pleased to have our Tegal 200 SE DRIE Silicon Etch System selected as a repeat order by this important Japanese customer. DRIE process performance, tool repeatability, and etch uniformity are the key factors considered by our customer for again choosing Tegal,” said Yannick Pilloux, DRIE Product Manager, Tegal Corporation. "The fact that our customer has selected Tegal, after working in MEMS production for many years in the Japanese market, is a strong endorsement of the Tegal 200SE’s track record for production performance. I’m convinced that our etch tool will provide the necessary capabilities to further support our customer’s current and future manufacturing requirements.”

The Tegal 200 SE system is 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 greater than 100:1 in production environments. Together with its high reliability, broad process windows, and high etch rates, the Tegal 200 SE system is a critical enabler for etching silicon (SE) films found in the MEMS, bio-tech, power IC, optoelectronic, and 3D-IC markets. Tegal DRIE tools are presently employed in numerous research and development laboratories throughout the world, engaging in both commercial and academic research programs, and are also found in MEMS foundries and other dedicated commercial High Volume Manufacturing lines world-wide.

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.

About Canon Marketing Japan

Canon Marketing Japan Inc. is the independent marketing arm of Canon Inc. - wholesaling and retailing a broad range of products developed and manufactured by Canon. In addition to the parent company, the Canon Marketing Japan Group currently includes 23 consolidated subsidiaries. Its operations are concentrated in the following business areas: business solutions, consumer equipment and industrial equipment. The Group seeks to boost revenue and income through more efficient operations. It therefore makes concerted efforts to expand high-revenue businesses and reduce costs through superior inventory and logistical systems. Equally important, the Group is firmly committed to strict compliance and effective, customer-oriented management. http://cweb.canon.jp/about/index-e.html