California Micro Devices Expands Contract with Flip Chip Technologies.

Business Editors/High-tech Writers

MILPITAS, Calif.--(BUSINESS WIRE)--Oct. 23, 2000

New Licensing Agreement Allows California Micro Devices (CAMD)

to Use Extended Flip Chip Technologies' (FCT)

Flip Chip Wafer Bumping Technology

California Micro Devices (Nasdaq:CAMD) announced today a technology licensing agreement with Flip Chip Technologies, LLC to use their proprietary Chip Scale wafer bumping and redistribution technologies to manufacture silicon substrates, primarily for the wireless and other portable communications marketplaces. This is an expansion of a previous licensing agreement that allowed for the use of FCT's Ultra CSP(TM) manufacturing process on ceramic substrates for Integrated Passive Devices (IPDs) and small scale Integrated Circuits (ICs). FCT will gain access to CAMD's proprietary wafer thinning process.

Wafer bumping and redistribution are silicon wafer level packaging processes that are utilized for chip scale packaging applications. California Micro Devices' new PAC(TM)DN1408C, which employs this technology, was recently featured on the cover of "Wireless Design and Development". The technology has several advantages over traditional package manufacturing. It is particularly well suited to Integrated Passive Devices, enhancing performance levels well into the gigahertz range. The small size can save up to 15 times the board space currently occupied by discrete passive components. And the resulting lower cost structure retains the simplicity of assembly associated with traditional components. Products that are manufactured using this technology are suitable for direct assembly onto a PC board without the use of underfill, and are available in tape and reel for use in standard assembly equipment.

"The use of FCT's technology is a triple win for a company building products such as ours," said CAMD President and CEO, Jeffrey Kalb. "It represents another 3X size reduction over our already small Integrated Passive Devices, making these devices particularly attractive in portable systems. It also increases their performance by eliminating package parasitics, and provides a new manufacturing cost reduction opportunity that is particularly well suited to the small chip sizes we produce. We have been manufacturing ceramic based Integrated Passive Devices in volume, and now see the need to gear up the silicon based ones in-house."

According to FTC President, Joel Camarda, "California Micro Devices is a rising star in the computer and wireless industries and we are pleased that the company has again selected our industry leading technology. We look forward to expanding our relationship and helping CAMD develop new market opportunities in silicon substrates."

CAMD has been acquiring the equipment and capability for producing IPDs and semiconductor devices in CSP format. This agreement with FCT, in conjunction with the recent addition of solder ball attach and high speed tape and reel equipment, will allow CAMD to serve the increasing market demands.

Founded in 1996 as a joint venture between Kulicke & Soffa Industries, Inc. (Nasdaq:KLIC) and Delphi Delco Electronics, FCT is the world's largest merchant supplier of solder bumping services and wafer scale packaging solutions. For more information about FCT visit www.flipchip.com.

Kulicke & Soffa is the world's largest supplier of semiconductor assembly equipment. The company provides scalable solutions for the assembly of chip and wire, flip chip and chip scale packages. Chip and wire solutions combine wire bonding, die bonding and wafer dicing equipment with wire, capillaries, die collects and saw blades. Flip chip solutions include die placement equipment, flip chip bumping technology, and thin film laminates. K&S also offers unique CSP packaging technology as well as factory integration products and services. It has sales, service and applications development facilities worldwide. Kulicke & Soffa's web site address is www.kns.com.

Headquartered in Milpitas, CA, California Micro Devices (www.calmicro.com) designs, manufactures and markets integrated thin film, silicon-based termination, filtering, and active electronic circuitry. Built in ISO 9000-registered quality system environments, California Micro Devices' products target the requirements of computer, networking, and communication-based customers for smaller, high density devices that operate at high frequencies with superior performance and functionality.

Note to Editors: UltraCSP(TM) is a trademark of Flip Chip Technologies, LLC PAC(TM) is a trademark of California Micro Devices