CORRECTING and REPLACING Advanced Forecasting Predicts Robust Semiconductors' Growth in 2004.

Business Editors/High-Tech Writers

CORRECTION...by Advanced Forecasting

SARATOGA, Calif.--(BUSINESS WIRE)--Feb. 2, 2004

In BW5064 issued Feb. 1, 2004: First graph, first sentence of release dated Feb. 1, 2004 should read: The Integrated Circuits (IC) industry ended 2003 with 16.2% revenue growth over 2002. (sted ...growth over 2004.)

Second graph, first sentence, should read: "Our forecast for 2003 predicted 25% growth over 2002,..." (sted ...growth over 2004,...)

The corrected release reads:

ADVANCED FORECASTING PREDICTS ROBUST SEMICONDUCTORS' GROWTH IN 2004

The Integrated Circuits (IC) industry ended 2003 with 16.2% revenue growth over 2002. "If the war with Iraq hadn't occurred, the IC industry would have ended 2003 growing approximately 25%," claimed Rosa Luis, Director of Marketing and Sales for Advanced Forecasting, a Silicon Valley-based quantitative forecasting group, adding that 2004 is very likely to significantly surpass this number. This strong growth figure was based on the same quantitative forecasting model that predicted zero growth for the IC industry in 2002 (actual growth ended being +1.7%).

"Our forecast for 2003 predicted 25% growth over 2002, but the unexpected onset of the war and SARS created a hesitation in the first few months of 2003, forcing us to freeze the forecast, thus lowering the actual growth rate to 16.2%," explained Luis. "Advanced Forecasting has only pushed out the forecast twice during the past 17 years, once for the Gulf War and the second for the recent war with Iraq. In both cases we froze the forecast for three to four months, without changing the forecast itself."

Advanced Forecasting's quantitative based forecast model predicted the timing and strength of the recent upturn a year and a half earlier. While the IC industry was plummeting into the worst recession in history, the forecasting house was already publishing the timing of the current robust upswing. Today, underlying demand as forecasted by Advanced Forecasting and actual IC revenue shipments have converged, increasing on the same strong slope that is forecasted to continue through 2004.

"The IC industry picked up substantial momentum in the second half of 2003 and we expect 2004 to continue that drive," held Luis. "Based on the slope of underlying demand, we predict the growth rate for IC Revenues for 2004 will be more than 30% over 2003. The model does not show a turning-point in 2004, so the year will be extremely prosperous."

Founded in 1987, Advanced Forecasting is a leader in forecasting demand for semiconductors, semiconductor equipment and materials industries. Advanced Forecasting uses a purely quantitative forecasting model, a unique and highly sought-after viewpoint that is never modified retroactively, thus appealing to high-level executives and industry leaders. It provides the industry's most accurate market forecasts and has acquired, in its seventeen years, a user base of more than 400 companies worldwide.