AlliedSignal and Ormet Corporation Announce Agreement To Produce Advanced Fine-Line Electronic Interconnect Products.

COSTA MESA, Calif.--(BUSINESS WIRE)--May 7, 1998--

Deal Offers IC Industry Leading-Edge Interconnect Solution,

Combining Allied's High Density Substrate Interconnect Technology

and Ormet(R) Metallurgical Joining Compound

AlliedSignal Substrate Technology & Interconnects (ASTI), a business enterprise of AlliedSignal Electronic Materials, announced today an exclusive agreement with Ormet Corporation to produce fine-line, micro-via, high-density electronic interconnect products. AlliedSignal Electronic Materials is a business unit of AlliedSignal Inc. (NYSE:ALD). The agreement will combine Ormet's processes, equipment, and materials technology, including its OMERLINK(TM) technology for vertical interconnection between pre-fabricated and tested fine-line, double-sided circuits, and AlliedSignal's expertise in manufacturing high-density substrate interconnect products.

According to Geoff Wild, president of AlliedSignal Electronic Materials, "Ormet's technology enhances our ability to produce cost-effective and highly reliable high-density, multi-layer substrates for demanding applications.

"The agreement will effectively enable us to offer our customers advanced interconnect solutions and is in keeping with our strategy to become the preferred supplier of electronic materials solutions to the global IC industry."

Single and multi-chip ball grid array (BGA) substrates are continually increasing in complexity and density, requiring finer dimensions. ASTI manufactures circuit pairs made of a high-performance material with prelased and plated vias and two copper layers for defining circuitry.

Lines and spaces of less than 50 microns with vias less than 25 microns can be achieved with AlliedSignal's material and process.

Lamination of several of these two-layer circuits to achieve multilayer constructions requires an innovative strategy for vertical interconnect in order to achieve the high density required. This is done using an appropriate dielectric bond-ply and patterning conductive materials.

The conductive material interconnection can be made in several ways, including patterning it directly onto the circuit. The material used here is an organic-metallic composite from Ormet. The Ormet(R) material is based on transient liquid phase sintering (TLPS) and is used to make a connection between the two pads by alloying with the pad metallization.

The partially sintered network provides a reliable network for electrical conduction. Merging these technologies allows AlliedSignal to provide a very cost-effective substrate solution for high-density, performance-driven applications.

According to Bill Robinette, Ormet's president and CEO, "This agreement represents a significant step in the commercialization of Ormet's metallurgical joining compound in volume products. ASTI and ORMET have worked together for some time on a number of high-density interconnect applications with considerable success.

"Ormet will continue to manufacture high-density products that leverage Ormet materials, process and equipment expertise in their construction."

AlliedSignal Electronic Materials, a strategic business unit of AlliedSignal Inc., provides materials solutions to the global semiconductor and electronics industries, and employs 3,000 people worldwide.

Based in Los Gatos, Calif., it has sales, marketing and manufacturing facilities in Calif., Wisconsin, Arizona, New York, South Carolina, Indiana, Taiwan, China, Singapore, Germany and India. Its businesses include Advanced Microelectronic Materials (AMM), AlliedSignal Substrate Technology & Interconnects (ASTI), Amorphous Metals, Laminate Systems, Oak-Mitsui and Optical Devices.

With corporate headquarters in Morristown, New Jersey, AlliedSignal Inc. is a $14.5 billion advanced technology and manufacturing company with 70,500 employees at 300 facilities in 40 countries.

It serves customers worldwide with advanced materials, aerospace and automotive parts, chemicals, fibers and plastics. It is among the largest 100 companies on the Fortune 500 and is one of 30 companies included in the Dow Jones Industrial Average.

Ormet Corporation, based in Carlsbad, Calif. is an innovator in leading-edge technology, produces fine-line interconnect products and engineered material products based on its unique electronic materials. With a strong and growing intellectual property portfolio, Ormet is leveraging both internal and government-sponsored research to produce commercial fine-line products and to license partners in selected technology areas.

Ormet Corporation designs, manufactures and markets products and solutions in the high-density electronic market. Ormet's products include semiconductor packaging products, fine-line, micro-via interconnect products, thermally enhanced wiring boards, active substrate products, and engineered material products (EMI shielding, jumper wire and embedded passives). -0-

This release contains forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934, including statements about future business operations, financial performance and market conditions. Such forward-looking statements involve risks and uncertainties inherent in business forecasts.

CONTACT: AlliedSignal

Grace Adams, 714/708-6217

[e-mail]

or

Ormet Corporation

Carol Christy, 760/931-7093

[e-mail]

or

Mathews & Clark Communications

Stewart R. Chalmers, 408/736-1120

[e-mail]