Credence Introduces a New Era of Semiconductor Testing: ValStar 2000, the First Affordable Production Test Solution for High Pin Count VLSI; Credence's ValStar 2000, the Newest Generation of ATE Test Systems, Delivers Exceptional Performance at a Revolutionary Price in an Evolutionary Footprint.

SAN JOSE, Calif.--(BUSINESS WIRE)--July 16, 1997--Credence Systems Corporation (NASDAQ:CMOS), a leading manufacturer of automatic test equipment (ATE) for the semiconductor industry, today announced the introduction of its new ValStar 2000 test system at SEMICON West 97, San Jose Convention Center, Booth No. 11927.

Credence's ValStar 2000 is the first ATE system designed specifically with the performance and price required for volume production of high pin count VLSI devices. The ValStar 2000 is an integrated solution for testing the complex logic, embedded memory and analog functions, and high speed bus interfaces of today's most sophisticated devices.

For advanced structural testing capabilities, this new system provides a 3 Gigabit Scan memory and a unique device power supply featuring high speed Iddq measurement capabilities. Specific applications include microprocessors, advanced chip sets, ASICs and FPGAs.

"Leveraging Credence's expertise in proprietary stabilized CMOS technology, the ValStar 2000 is ideally suited for the cost-sensitive, high-volume segment of the VLSI market," said Gary Smith, Credence's Product Marketing Director.

An entirely new breed of highly integrated devices has been created to meet the burgeoning demand for multimedia computing, or MMX, capabilities. The multimedia explosion is best illustrated by the rapid penetration of this advanced technology into mainstream consumer PCs.

ATE must be able to certify these new devices which process data, audio and graphics via multiple bus architectures running at speeds in excess of 133 MHz. Moving and processing huge amounts of data in real time, these new designs represent a true technological challenge to test equipment.

Offering up to 1,024 input/output (I/O) pins at 200 MHz data rates, the ValStar 2000 is among the industry's smallest ATE systems. Occupying less than 4 square meters of fab space and measuring only one meter wide, Credence delivers unprecedented performance with a very small footprint.

With the cost of equipping a new fab approaching the $1 billion mark, getting the most out of every square foot of space is paramount. Higher equipment productivity within a minimal footprint translates directly into a greater return on investment. When fully loaded the ValStar 2000 consumes only 16 KW of power, which is much less than competitive systems, thus lowering operating costs.

"Working with our customers, Credence is able to focus on the semiconductor technology roadmap and utilize our resources to inaugurate the next era of semiconductor testing," said Bill Bottoms, Credence's CEO.

"Our new ValStar 2000 is more than a milestone, it represents the future in ATE. At only a fraction of the cost, power consumption and space of traditional high pin count systems, the ValStar 2000 enables manufacturers and assemblers to achieve cost effective volume production of the most advanced devices."

The ValStar 2000 uniquely satisfies three essential manufacturing requirements: performance, cost and time to market. Credence's patented low-power stabilized CMOS technology allows all test electronics to be embedded within the test head, virtually eliminating fragile high-speed cables while offering manufacturers superior reliability. ValStar 2000's multisite test capability easily tests of up to 16 devices in parallel, further enhancing production throughput.

Time to market is extremely critical in a rapidly evolving consumer market. The ValStar 2000's AGILE graphical software environment facilitates the development of test programs and debugging procedures. Seamlessly integrated into Credence's ValStar 2000, AGILE speeds manufacturers' ramp up time to volume production with powerful production interface tools and automatic multisite program generation.

G. Dan Hutcheson, president of VLSI Research Inc., commented, "Employing a thorough understanding of the most advanced CMOS IC technology available, Credence designed its new VLSI test system to offer high performance at low cost. The ValStar 2000 continues the Credence tradition of anticipating the need for, and delivering, cost effective technologies which satisfy customers who have been clamoring for higher value ATE solutions."

Credence's ValStar 2000 provides significant competitive advantages over existing high pin count ATE systems. With a list price of $3.6 million for 1024 I/O pins, the ValStar 2000 delivers the technology needed for today's high-performance VLSI testing at nearly half the price of other systems on the market.

Credence Systems Corporation is a leading manufacturer of automatic test equipment (ATE) that serves a broad spectrum of the worldwide semiconductor industry's testing needs. Credence offers a wide range of products with test capabilities for digital, mixed-signal, and memory semiconductors.

The Company utilizes its proprietary CMOS technologies to redefine test with products that are designed to solve its customers' business problems through technology while meeting the increasingly demanding performance requirements of today's ATE market. The Company is headquartered in Fremont, California, with manufacturing in Beaverton, Oregon.

Credence is listed on the Nasdaq National Market under the symbol CMOS and can be found on the World Wide Web at http://www.credence.com . -0-

Credence, Credence Systems and ValStar 2000 are trademarks of Credence Systems Corporation. Other trademarks that maybe mentioned in this release are the intellectual property of their respective owners.

CONTACT: The Loomis Group Inc.

Bruce Bedortha, 415/882-9494

[e-mail]

or

Credence Systems Corp

Connie Graybeal/Bill Bottoms, 510/657-7400

[e-mail]