Analog Devices Places Multimillion Dollar Order for Several Ultratech Model 1500 Steppers; Systems to be used for automotive and consumer accelerometer applications.

SAN JOSE, Calif.--(BUSINESS WIRE)--Sept. 16, 1997--Ultratech Stepper Inc. (NASDAQ:UTEK), a leading supplier of photolithography systems used for the manufacture of semiconductors, thin film heads (TFHs) for disk drives and micromachining devices, today announced that new customer Analog Devices (Norwood, Mass.) has placed a multimillion dollar order for several Ultratech Model 1500 steppers.

The systems will be used in its new facility in Cambridge, Mass. to manufacture integrated accelerometers used in automotive airbags and other consumer applications.

Analog Devices (ADI) reports that it selected the Model 1500 over competing systems due to the tool's performance in the key areas of critical dimension (CD) control, depth of focus (DOF) and cost of ownership, as well as Ultratech's well-established service and support capabilities.

Dr. Richard Payne, director of manufacturing operations for ADI's micromachined products division, stated, "A significant criterion in our final purchase decision was that the Model 1500 met our fab's limited throughput-per-square-foot requirements. Equally important to us was the Model 1500's seamless integration into our existing fab without disrupting production schedules-a major consideration in terms of cost of ownership."

Payne added, "Ultratech's comprehensive on-site support for these systems was a key factor in enabling this seamless transition."

Commenting on Ultratech's position in the micromachining market and the significance of the order, Ultratech's Senior Vice President of Sales, Service and Marketing Dan Berry stated, "Because Analog Devices holds a leading market share in the micromachining sector, we feel that their addition to our customer base firmly establishes Ultratech's role as a preferred supplier to the industry.

"We intend to further strengthen this role through continuously meeting the industry's specific technical, cost and support requirements-requirements that must be fulfilled in order to maintain and fortify its growth."

In addition to micromachining, Ultratech Stepper's Model 1500 addresses a wide range of lithography applications, including application-specific integrated circuits (ASICs), low-cost integrated circuits (ICs) and charge-coupled devices (CCDs).

The system is available in two configuration options -- 1.0 m and 0.8 m resolution -- allowing customization of the tool to meet chipmakers' specific requirements. Combining reliability and throughput with low reticle costs, the Ultratech Model 1500 is designed to provide low cost of ownership to manufacturers.

Four of the Model 1500 systems are installed and in full production at Analog Devices' Cambridge facility. The order's three remaining tools are expected to commence shipment over the next 18 months.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Except for historical information, the matters discussed in this news release that may be considered forward-looking statements may be subject to certain risks and uncertainties that could cause the actual results to differ materially from those projected, including uncertainties in the market, the timely development and acceptance of new products and upgrades, pricing competition, procurement and manufacturing efficiencies, and other risks detailed from time to time in the company's SEC reports. The company assumes no obligation to update the information in this release.

About Analog Devices

Headquartered in Norwood, Mass., Analog Devices is one of the world's leaders in analog, mixed-signal, and digital signal processing. Analog Devices designs, manufactures, and markets a broad line of high-performance linear, mixed-signal, and digital integrated circuits that address a wide range of real-world signal processing applications.

The company's principal products include system-level ICs and general purpose, standard product linear ICs. Other products include devices manufactured using assembled product technology, such as hybrids, which combine unpackaged IC chips and other chip-level components in a single package.

About Ultratech

Founded in 1979, Ultratech Stepper Inc. designs, manufactures and markets photolithography steppers used worldwide in the fabrication of semiconductor and thin film heads for disk drives. The company produces high-technology products that substantially reduce the cost of ownership for manufacturers in the electronics industry.

Ultratech's common stock is traded on the Nasdaq Stock Market under the symbol UTEK. The company's home page on the World Wide Web is located at www.ultratech.com .

CONTACT: Ultratech Stepper Inc.

Scott Zafiropoulo, 408/577-3116

or

MCA Inc.

Terry Anderson, 650/968-8900