CASCADE MICROTECH TO ACQUIRE ALESSI.

BEAVERTON, Ore.--(BUSINESS WIRE)--Nov. 17, 1994--Cascade Microtech today announced that a Letter of Intent had been signed with Dukane Corp. of St. Charles, Ill., under which Cascade Microtech will purchase Alessi Inc., a Dukane subsidiary based in Irvine, Calif., subject to completion of due diligence by Cascade Microtech. Alessi provides failure analysis probes, systems and software to the semiconductor manufacturing industry. Cascade Microtech is a world leader in advanced microelectronic technology, systems and software.

"This combination is one that should benefit our combined customers," said Dan Riordan, chief operating officer of Cascade Microtech. "As the life-cycle of semiconductor product generations continues to shorten, device manufacturers require greater automation and integration of their test equipment. Now, the combination of Alessi's strong position in failure analysis coupled with Cascade Microtech's leading position in advanced device testing probes and stations for characterization will allow us to further integrate the testing process, leading to equipment that should provide even better returns on our customers' investments."

"We are most pleased that Alessi will become a part of Cascade Microtech," noted Charles N. Clark Sr., president of Dukane Corp. "When we determined that Alessi was no longer a good strategic fit for Dukane, we set out to find a company with the same high quality standards, and Cascade Microtech certainly meets our expectations."

The Letter of Agreement announced today calls for Cascade Microtech to complete a series of due diligence steps over the next few weeks. If the due diligence is satisfactorily completed, Alessi Inc. will be acquired by Cascade Microtech in early January 1995.

Alessi Inc., founded in 1967, began as a company devoted to testing electronic devices. As the industry moved to integrated circuits, Alessi's products moved with the industry. Today, the company designs, markets and services a series of device testing equipment for the discrete, hybrid, analog and liquid-crystal-display (LCD) markets.

Dukane Corp., founded in 1922, is today a manufacturer and global marketer of a broad range of electronic and electro-mechanical products. Headquarters for the company are in St. Charles, Ill. The company's product portfolio includes overhead and LCD projection products, ultrasonic plastic welding systems, ultrasonic beacons used in underwater applications, and specialized communication systems for schools, hospitals, and other commercial sound applications.

Cascade Microtech, founded in 1983, is a world leader in high performance probing technology, systems and software for the semiconductor industry. Its customers produce integrated circuits in silicon, gallium arsenide and other substrata, RF, microwave or millimeter wave modules, multi-chip modules, single-chip packages, surface-acoustic wave resonators and filters and other structures. Most Cascade Microtech customers use the company's products to characterize and model single-device test structures on wafers, to develop new processes, enhance yields of existing processes, or model structures for circuit design simulation.

Cascade Microtech has offices in the United States, Japan and the United Kingdom. In 1990, the Hewlett-Packard Co. acquired a minority position in the Cascade Microtech and the company's products are often used with Hewlett-Packard's test and measurement equipment in the computer, communication, semiconductor and defense industries.

CONTACT: CASCADE MICROTECH, Beaverton, Ore.

              Sid Blachford, 503/626-9231
                      Fax:   [phone]