Challenge Fund to Invest $5 Million in Tower Semiconductor.Business Editors/High Tech Writers MIGDAL HAEMEK Migdal HaEmek (Hebrew: מִגְדַּל הָעֶמֶק, also officially spelt Migdal HaEmeq, Arabic: , Israel--(BUSINESS WIRE)--Feb. 12, 2001 Tower Semiconductor Ltd. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :TSEM TSEM Tower Semiconductor Ltd. (stock symbol) TSEM Transmission Scanning Electron Microscopy TSEM TOW System Evaluation Missile )(TASE TASE Tel Aviv Stock Exchange TASE The All Seeing Eye TASE Tactical Air Support Element TASE Thrust Assessment Support Environment TASE Telecontrol Application Service Elements (IEC communications protocol) :TOWER) Terms Similar to Tower's Recent Investment Agreement With Israel Corp. Tower Semiconductor Ltd. (NASDAQ:TSEM)(TASE:TOWER) announced today the signing of a definitive agreement with The Challenge Fund - Etgar II, a venture capital partnership registered in Delaware, USA, under which The Challenge Fund will invest $5 million in Tower common shares under terms similar to Tower's recent investment agreement with Israel Corp. The proceeds of this investment will be used in connection with the funding of Tower's Fab 2. In return, Challenge Fund will receive corresponding equity in Tower. Under these terms the investment will be made over a period of about two years, upon reaching specified milestones along the project plan. On achieving each milestone, Tower will receive the corresponding installment and in return issue the agreed upon Adj. 1. agreed upon - constituted or contracted by stipulation or agreement; "stipulatory obligations" stipulatory noncontroversial, uncontroversial - not likely to arouse controversy common shares. The first installment of $1.33 million is expected today. In return The Challenge Fund will receive 99,115 Tower common shares. About Tower's New Fab Tower recently began construction of an advanced fab adjacent to its current facility in Migdal Haemek, Israel. The new fab, referred to as "Fab 2," will employ approximately 1,000 professionals and produce up to 33,000 200-mm wafers per month in geometries of 0.18 micron and below, using advanced CMOS (Complementary Metal Oxide Semiconductor) Pronounced "c-moss." The most widely used integrated circuit design. It is found in almost every electronic product from handheld devices to mainframes. technology from Toshiba. Funding for the project is provided by wafer partners, Israel Corp, other financial investors, an Israeli government grant, bank loans and Tower's own resources. Wafer Partners include SanDisk Corporation (NASDAQ:SNDK), Alliance Semiconductor (NASDAQ:ALSC ALSC Association for Library Service to Children ALSC Adirondack Lakes Survey Corporation ALSC Afloat Logistics and Sealift Capability ALSC American Lumber Standards Committee, Inc. ALSC Advanced Logistics Systems Center (AFMC) ), QuickLogic Corporation (NASDAQ:QUIK) and Macronix International (NASDAQ:MXICY). About Tower Semiconductor Tower Semiconductor Ltd. is an independent wafer manufacturer, strategically focused on advanced Flash memory and CMOS Image Sensor A CMOS-based chip that records the intensities of light as variable charges similar to a CCD chip. Although initially used in less expensive digital cameras, the quality of CMOS sensors has improved steadily. CMOS sensors have advantages over CCDs. technologies. Tower provides manufacturing and turnkey services for integrated circuits Integrated circuits Miniature electronic circuits produced within and upon a single semiconductor crystal, usually silicon. Integrated circuits range in complexity from simple logic circuits and amplifiers, about 1/20 in. (1. (IC) on silicon wafers in geometries from 1.0 to 0.35 micron, using its advanced technological capabilities and the proprietary designs of its customers. In addition, Tower offers manufacturing services for mixed signal and core CMOS devices. To meet anticipated demand, Tower plans to construct a second fab adjacent to its current facility that will operate in geometries of 0.18-micron and below, utilizing advanced materials and advanced CMOS technology from Toshiba. For additional information please visit www.TowerSemi.com This press release includes forward-looking statements, which are subject to risks and uncertainties. Actual results may vary from those projected or implied by such forward-looking statements. Potential risks and uncertainties include, without limitation, risks and uncertainties associated with (i) completing the construction of a new wafer manufacturing facility, (ii) conditions in the market for foundry manufacturing services and in the market for semiconductor products generally, (iii) successful completion of the development and/or transfer of advanced CMOS technologies to be utilized in the new Fab, (iv) market acceptance and competitiveness of the products to be manufactured by Tower using these technologies and (v) ramp-up at Tower's new fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. facility. A more complete discussion of risks and uncertainties that may affect the accuracy of these statements, and Tower's business generally, is included at "Item 1. Business -- Factors Which May Influence Future Results and Accuracy of Forward-Looking Statements" in Tower's most recent Annual Report on Form 20-F and other reports, as filed by Tower with the Securities and Exchange Commission from time to time. |
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