Credence Books Multiple System Order From UTAC; Order Extends Credence's Market Leadership in Semiconductor Manufacturing Service Industry.

FREMONT, Calif.--(BUSINESS WIRE)--Dec. 8, 1999--

Credence Systems Corp. (Nasdaq:CMOS), a leading manufacturer of automatic test equipment (ATE) for the worldwide semiconductor industry, today announced a multiple system order from United Test and Assembly Center Pte. Ltd. (UTAC) (Singapore) for Quartet and Duo test systems.

UTAC, a leading semiconductor packaging and test subcontractor dedicated to logic, ASIC and memory devices, will use the systems to test a wide variety of consumer mixed-signal devices. The Duo test system was installed this month in UTAC's assembly and test facility in Singapore and the first Quartet One test system is scheduled for installation in early 2000.

The order represents the first business between the two companies.

UTAC has recently been able to secure several key customers. Albert Ng, director of sales and marketing for UTAC, noted, "Over the last year, we've demonstrated an ability to win key integrated device manufacturer customers (IDM) -- exceeding even our own expectations. The Quartet and Duo test systems will enable us to keep pace with our rapidly growing base of both fabless and IDM customers."

Ng continued, "These systems provide UTAC with a substantial competitive advantage, especially in regards to productivity and mixed-signal testing capabilities. Credence dominates the semiconductor manufacturing services industry (SMS) as the leader for value-added test solutions, and we are pleased to partner with them."

Assembly and test subcontractors and foundries continue to gain market share as both fabless and integrated semiconductor companies ramp up manufacturing capacity. The semiconductor manufacturing outsourcing model is driven by chipmakers' demand for increased testing ability and controlled costs.

Both foundries and assembly/test subcontractors, such as UTAC, repeatedly select Credence's tools as turnkey test solutions because they extend the range of testing capabilities to encompass a broad range of devices and substantially raise productivity levels.

"Credence is happy to play a role in UTAC's ongoing growth as it emerges as a leading manufacturing subcontractor in Singapore. Since its establishment less than two years ago, UTAC has developed into a major packaging and test subcontractor with the capacity for a full array of comprehensive manufacturing services," said Dr. Graham J. Siddall, president and CEO of Credence.

"Our commitment to deliver cost-effective test systems to assembly and test companies is substantiated by continued orders from this market."

About Quartet Series

The Quartet Series provides IC manufacturers with a high-throughput, reliable testing system that maintains margins and high productivity rates. Unifying a revolutionary digital and memory test subsystem with Credence's industry-leading audio, video and radio frequency (RF) instruments, the system seamlessly tests consumer mixed-signal (CMS) devices.

The precise synchronicity of these instruments, integrated into a single test system, enables the volume manufacturing of high-performance, CMS devices. CMS is the market consisting of high-volume cost-sensitive system-on-a-chip (SOC) designs.

About UTAC

Founded in 1998, United Test and Assembly Center Pte. Ltd. (UTAC) is dedicated to becoming a world-class semiconductor services provider that will partner with customers to develop and provide semiconductor service solutions. UTAC, ISO 9002 certified, provides one-stop semiconductor assembly and testing services for both memory and logic/mixed signal devices.

UTAC's assembly and test services address a full range of packages, including TSOP, QFP, LQFP, FBGA, PBGA and EBGA. The company's headquarters, housing a 390,000 square foot test/assembly area and 50,000 square foot cleanroom, is located in Singapore. More information about the company, its products and services may be obtained from the worldwide web at http://www.utac.com.sg.

About Credence Systems

Credence Systems Corp. is a leader in the manufacture of automatic test equipment (ATE) for the global semiconductor industry. Credence offers a wide range of products with test capabilities for digital, mixed-signal and memory semiconductors.

Utilizing its patented CMOS technologies, Credence products are designed to meet the strict time-to-market and cost-of-ownership requirements of its customers. Headquartered in Fremont, Calif., the company maintains advanced production and design facilities in Hillsboro, Ore.

Credence, an ISO 9001 certified manufacturer, is listed on the Nasdaq National Market under the symbol CMOS. More information is available at http://www.credence.com.

Note to Editors: Credence, Credence Systems, Duo, Duo Series, Quartet and Quartet One are trademarks of Credence Systems Corporation. Other trademarks that may be mentioned in this release are the intellectual property of their respective owners.