Electroglas and Cascade Microtech Announce Strategic Relationship and Investment.

SANTA CLARA, Calif.--(BUSINESS WIRE)--July 21, 1999--

Electroglas Inc. (Nasdaq:EGLS), a leading supplier of essential process management tools for the semiconductor industry, and Cascade Microtech, a leading manufacturer of probe stations and probe cards used to characterize semiconductor devices on-wafer, today announced that Electroglas has purchased a minority equity share of Cascade Microtech.

Terms of the $3 million purchase of Series B preferred shares were not disclosed. Cascade Microtech has appointed Curt Wozniak, chairman and CEO of Electroglas, to its board of directors.

"Electroglas has made this strategic investment because of the industry-leading reputation for technology that Cascade Microtech began building when its founders developed the first microwave prober over 15 years ago," said Curt Wozniak, chairman and CEO of Electroglas. "Their low-noise, low-leakage prober technology, as well as their exciting new production probing solutions, complement our existing product line and process management strategy. In addition, the company's business strategy is solid, successfully bringing them through the recent semiconductor market downturn."

"We view Electroglas' investment as very positive," said Bruce McFadden, president and COO of Cascade Microtech. "It provides a foundation for us to work together to better serve the emerging needs of our mutual semiconductor-manufacturing customers. This investment strengthens our reputation as a key supplier of innovative wafer-probing technology that addresses rapidly changing needs."

"We are particularly interested in technology for very low noise parametric testing because it fits perfectly with our process management strategy," Wozniak continued. "Our process management strategy is to provide the critical tools that enable semiconductor manufacturers to improve process efficiency and maximize yields. With our wafer probers, SORTnet(TM) networking software, QuickSilver(TM) automated inspection products and Knights yield management software, we have taken strides to offer solutions for the final step of the semiconductor manufacturing process. Cascade Microtech's parametric test technology is used not only at the end of the line, but in-line as well, expanding our role in the fabrication process."

In addition to Electroglas, Palo Alto, Calif.-based Hewlett-Packard Company and Maristeth Ventures Fund of Tacoma, Washington also have minority equity positions in Cascade Microtech.

About Cascade Microtech, Inc.

Cascade Microtech, Inc., based in Beaverton, Oregon, delivers breakthrough productivity improvements through technology innovations in wafer probing. Cascade is the world's largest manufacturer of probe stations, probe cards, accessories and software, used in analytical testing and R&D characterization of semiconductor devices on-wafer. With its Pyramid membrane production probes and the new PS21 automatic wafer prober, Cascade also provides unrivaled measurement capability for semiconductor production testing. For more information about Cascade Microtech, please visit www.cascademicrotech.com

About Electroglas, Inc.

Electroglas delivers essential tools for process management designed to enhance semiconductor companies' profitability. The company's wafer probers, inspection systems and software solutions serve as data collection, management and analysis tools that semiconductor manufacturers depend on to improve their productivity and process control by optimizing sort-floor efficiency. Electroglas has been a leading supplier of wafer probers for over 35 years and has an installed base of more than 10,000 systems. The company's stock trades on the NASDAQ National Market under the symbol "EGLS." The company's website is located at www.electroglas.com.

SORTnet and QuickSilver are registered trademarks of Electroglas, Inc. Other product names mentioned in this document are trademarks of their respective holders.