Etec's Mode 5 Format Specification Released To Licensees.

HAYWARD, Calif.--(BUSINESS WIRE)--Jan. 26, 1999--Etec Systems, Inc. (NASDAQ: ETEC), a leader in patterning solutions for the worldwide semiconductor and electronics industries, today announced that the technical specification for its Mode 5(TM) format was distributed to licensees in preparation for the industry roll-out of this new pattern file format.

Mode 5 format is a leading-edge proprietary MEBES(R) pattern file specification that prescribes how semiconductor pattern descriptions may be structured in computer files in order to be understood by Etec's leading-edge pattern generation systems, including the MEBES 5000, ALTA(R) 3500, MEBES 4500 systems. Firms providing world-class data preparation and inspection solutions for the semiconductor maskmaking industry are developing compatibility with this advanced specification and working to meet the demands posed by the continually larger file sizes associated with today's most advanced semiconductor devices.

Initial industry response from licensees and customers is positive

Etec's Mode 5 format provides customers and licensees with more concise representation and manipulation of semiconductor device pattern data. "This new format was designed to satisfy customers' pattern needs in the foreseeable future by providing two key benefits: finer addresses and improved data compaction," said Frank Abboud, Vice President of Product Development at Etec. "This new MEBES pattern file format standard is a path to eliminate potential defect sources, reduce data preparation time, and shrink the enormous pattern files associated with 0.18 micron and smaller devices."

Mode 5 format reduces pattern file size through the use of the Extended Array(TM) data compaction feature. Large pattern file sizes have been identified as a potential production obstacle and error source for many types of tools used in semiconductor maskmaking. Although Extended Array data compaction results are pattern dependent, early adopters have reported compaction of as much as 90% compared to existing pattern files. "These results are expected to improve as vendors further optimize their products to take advantage of Mode 5 format's compaction ability," continued Abboud. Compaction will be essential, as non-Mode 5 compacted pattern sizes have been projected to grow exponentially to as large as 128 gigabytes for the 0.13 micron design generation (source: SIA roadmap).

Mode 5 format will be supported on Etec's most advanced pattern generators

Mode 5 format compatibility was originally unveiled as a feature of the MEBES 5000 system when it was introduced in July 1998 at SEMICON West in San Francisco, California. According to Gary VanNice, Etec's Director of Marketing, "Mode 5 format compatibility is being extended to all ALTA laser pattern generators and MEBES electron beam pattern generators with Superflash High Throughput Memory. Mode 5 format provides the maskmaker with a new tool to optimize pattern generator performance," continued VanNice.

Other firms may license Mode 5 format

Mode 5 format is a proprietary specification that Etec is providing to the maskmaking industry through its Data Files licensing program. Etec is pleased to consider additional firms interested in joining its licensing program, which allows participants technical access to Mode 5 format and current industry standard MEBES pattern file formats.

Safe Harbor Under the Private Securities Litigation Reform Act of 1995: Except for historical information, the matters discussed in this news release are forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include risks associated with the timely development and market acceptance of new products in an environment of rapid technological change, reduced or postponed orders as a result of changes in customers' planned capital spending, timely availability of key components, delays in factory testing and acceptance, manufacturing capacity constraints, the possibility of new products or technologies introduced by competitors, and material variations in financial results due to a delay in delivery of even one system. Statements in this release are based upon internal estimates, preliminary information and management assumptions which are subject to a number of risks and uncertainties inherent in estimating future results. Other risks are detailed from time to time in the Company's SEC reports, including the annual report filed on Form 10-K and subsequent filings on Form 10-Q. The Company assumes no obligation to update the information in this release.

About Etec: Etec Systems, Inc. is a leader in patterning solutions for the worldwide semiconductor and electronics industries. Its products include electron-and laser-beam systems that produce high-precision masks, which are used to print circuit patterns onto semiconductor wafers and high-speed, large-area laser direct imaging systems and e-beam test equipment for electronic interconnect and flat panel display production applications. Founded in 1970, the company is headquartered in Hayward, Calif., with manufacturing facilities in Hayward, Calif., Beaverton, Ore., Tucson, Ariz., and Feldkirchen, Germany, with sales and service offices worldwide. Etec's stock is traded on the Nasdaq Stock Market under the symbol ETEC. Additional information about the Mode 5 format and Etec Systems, Inc. can be found on the company's World Wide Web site at www.etec.com.