Corning and Photronics to Jointly Develop New Circuit-Imaging Products for the Semiconductor Industry.

Business/High-Tech Editors

CORNING, N.Y.--(BUSINESS WIRE)--Feb. 23, 2000

Corning Incorporated (NYSE:GLW) and Photronics, Inc. (NASDAQ:PLAB) today announced a two-year agreement to jointly develop a new generation of photoblanks, the glass foundation of the photomasks used by semiconductor manufacturers to optically etch integrated circuits onto silicon wafers.

Photronics is one of the leading manufacturers of photomasks, a critical component of the lithography process used to fabricate integrated circuits. Corning is a leading supplier of the glass--high purity fused silica--used to make microlithographic lenses that are employed to transfer the IC pattern to the wafer. It entered the photomask market in November 1999 with the release of HPFS(R) photomask glass substrates, which are processed into photoblanks. Corning and Photronics estimate that the photoblank market will grow from $400 million today to $700 million by 2003, and that the photomask market will grow from about $2 billion today to approximately $4 billion by 2003.

"The technology we are developing will allow semiconductor manufacturers to make a new generation of faster and more versatile chips," said Randall D. Price, executive vice president, Corning Advanced Materials. "In particular, they will enable manufacturers to use shorter wavelengths of ultraviolet light, called Deep UV, to etch more intricate circuits onto silicon wafers."

"Meeting the need for such short wavelength lithography requires a combination of advanced equipment, process technology, and new materials. It's the only way to reach the desired levels of circuit-pattern density and fidelity," said Steve Carlson, vice president of technology at Photronics. "Our association with Corning will allow us to significantly add to the performance of our Sub-Wavelength Reticle Solutions(TM) photomask product families."

Photronics produces photomasks in accordance with circuit designs provided by customers at strategically located manufacturing facilities in Asia, Europe, and North America. Additional information on the company can be accessed at www.photronics.com.

Corning is one of the world's leading suppliers of high purity fused silica glass for today's optical lithography market and other applications. This ultra-pure glass provides extreme optical clarity and durability, and is used in the manufacture of today's most advanced integrated circuits. The company manufactures HPFS glass in Canton, N.Y., and Charleston, S.C., and has sales offices around the world. More information is available at www.hpfs.corning.com.

Established in 1851, Corning Incorporated (www.corning.com) creates leading-edge technologies for the fastest-growing markets of the world's economy. Corning manufactures optical fiber, cable and photonic products for the telecommunications industry; and high-performance displays and components for television and other communications-related industries. The company also uses advanced materials to manufacture products for scientific, semiconductor and environmental markets. Corning's revenues in 1999 were $4.3 billion.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Except for historical information, the matters discussed in this news release that may be considered forward-looking statements may be subject to certain risks and uncertainties that could cause the actual results to differ materially from those projected, including uncertainties in the market, pricing competition, procurement and manufacturing efficiencies, and other risks detailed from time to time in the Company's SEC reports. The Company assumes no obligation to update the information in this release.