Credence Books Order for First Quartet One System From ISE Labs.

FREMONT, Calif.--(BUSINESS WIRE)--Oct. 12, 1998--Credence Systems Corporation (Nasdaq:CMOS), a leading manufacturer of automatic test equipment (ATE) for the worldwide semiconductor industry, announced an order from ISE Labs Inc. for Credence's new Quartet One test system.

ISE, Silicon Valley's largest integrated circuit (IC) testing laboratory, purchased the Quartet One to test next-generation digital-mixed signal devices. The system will be installed in ISE's facility in San Jose, Calif. Delivery is scheduled for late fourth quarter 1998.

VLSI Research Inc., recently estimated that nearly 40% of all the world's ICs are assembled and packaged by subcontract manufacturers, like ISE, and analysts predict that subcontractors will continue to gain significant marketshare in the coming years.

Credence enables these companies to keep pace with the eroding unit prices for ICs at a time when volume is increasing. Helping customers control manufacturing costs while providing high-throughput, ultra-reliable testers, Credence's systems allow test and assembly houses to maintain margins and high productivity rates.

"Over the years, much of ISE's success has been achieved using Credence's Duo platform," commented Saeed Malik, president and CEO of ISE. "Therefore, ordering the world's first Quartet One was a simple decision when we decided to extend the range of our testing capabilities. But it's more than a familiarity issue, Credence is a true partner in ISE's growth and continued profitability in a highly competitive marketplace."

Credence focused on the subcontract manufacturing services industry from its inception, developing innovative partnership programs for ISE and others. After considering the current economic challenges, analysts continue to forecast strong growth for the global test and assembly market.

Credence has become the marketshare leader for this segment of the ATE industry by delivering test systems that set the standard for fast cycle times, and provide low cost-of-ownership.

"Credence's success at helping our customers maintain fast time to market and profitability is enhanced by our continued partnership with ISE," said David Ranhoff, executive vice president for Credence Systems. "ISE is adept at managing costs and succeeds by utilizing a combination of leading-edge technology and highly trained employees throughout its global operations."

Quartet One unifies a revolutionary, new digital and memory test subsystem, with Credence's industry-leading audio, video, and RF instruments. The precise synchronicity of these instruments, integrated into a single test system, enables the volume manufacturing of high-performance, consumer mixed-signal (CMS) devices. CMS is the market consisting of high-volume cost-sensitive systems-on-a-chip (SOC) designs.

About ISE

ISE provides comprehensive, one-stop service for electrical and environmental screening of integrated circuits. Silicon Valley's largest IC testing laboratory, ISE offers a full spectrum of services related to back-end manufacturing of ICs, including wafer testing, assembly services, ESD and lead scanning. ISE is ISO 9002 certified. More information regarding ISE can be found on the World Wide Web at http://www.iselabs.com or by calling 408/954-TEST.

About Credence

Credence Systems Corporation 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 Beaverton, Ore. Credence, an ISO 9001 certified manufacturer, is listed on the Nasdaq National Market under the symbol CMOS. More information is available at www.credence.com.

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