August Technology Introduces Wafer-Edge Inspection and Metrology System.

Business Editors/High-Tech Writers

SEMICON West 2003

MINNEAPOLIS--(BUSINESS WIRE)--July 9, 2003

New EXi Series provides early insight to potential yield loss

while enabling reduced tool down time and manufacturing costs

August Technology Corporation (Nasdaq:AUGT), a leading supplier of inspection and metrology solutions for the microelectronic industries, today announced the introduction of the new EXi Series Advanced Wafer Edge Inspection & Metrology system. Designed to meet the growing need for more comprehensive wafer characterization and process monitoring, the EXi Series inspects for chip-outs, cracks, delamination, residual resist, particles, and other defects which occur along the edge of the wafer. The EXi Series also automatically performs Edge Bead Removal (EBR) and Wafer Edge Exclusion (WEE) metrology. The EXi Series is designed for deployment at bare wafer processing, throughout the fab and at outgoing inspection.

"In their continuing efforts to drive down cost and maximize yield, microelectronic device manufacturers are increasingly adopting automated inspection solutions for the edge of the wafer which improve manufacturing efficiency and slash the cost of operations," commented Tom Shurson, EXi Series product manager. "For example, automated edge inspection, implemented during the Lithography process, will identify EBR variations and particles early and allow for possible wafer rework that can increase yields and reduce manufacturing costs. Edge inspection implemented in the fab at final outgoing inspection identifies chipouts, cracks and other killer defects that cause wafer breakage and tool downtime during the backgrinding process. Due to the increase in edge area and wafer stress levels in 300mm wafer processing, the value of wafer edge inspection is magnified."

The EXi Series, built on August Technology's best-in-class defect detection technology, provides fully automated inspection and handling of 150mm-300mm wafers, as well as defect filtering and other automatic classification capabilities. Edge inspection from multiple angles provides the unmatched ability to identify hard-to-detect defects at throughputs of up to 120 wafers per hour (200mm). The new EXi Series is also built on August Technology latest user-interface platform, making the system extremely easy to set up and run in production.

August Technology will be exhibiting at Semicon West 2003 in San Francisco (Booth #6577) and San Jose (Booth #10034).

About August Technology: August Technology's automated inspection and metrology solutions provide critical product and process enhancing information, which enables microelectronic device manufacturers to drive down costs and time to market. Based in Bloomington, Minnesota, August Technology is a founding member of the Advanced Packaging and Interconnect Alliance (APiA) and an active member of the Die Products Consortium (DPC). Additional information can be found on the company's web site at www.augusttech.com.

Forward Looking Statement: This release contains forward-looking statements that involve risks and uncertainties including statements regarding the capabilities, performance, markets and customer needs of the new EXi Series product offering. These forward-looking statements involve risks and uncertainties that may cause actual results to differ from those set forth in the forward-looking statements, including, but not limited to deterioration in general economic conditions, further softening of the financial markets, downturns in the semiconductor or microelectronics industry, inaccurate market expectations, lack of customer acceptance or any unforeseen difficulties in the development, manufacture, shipment, installation, performance or market acceptance of our new EXi products. Please refer to additional risk factors stated in August Technology's Annual Report on Form 10-K filed with the Securities and Exchange Commission.