KDF Broadens Customer Relationships with Leading Medical Equipment OEMS; Customers Buy Batch Sputtering Systems for Digital X-ray Technology, Pacemaker Production.

ROCKLEIGH, N.J. -- KDF today announced that leading original health equipment manufacturers continue to purchase and accept the Company's 700 and 900 series batch sputtering systems for use in the manufacture of essential digital radiography diagnostic equipment and pacemaker components. The systems are installed and currently in qualification phase.

"The procurement of our tools by two of the world's largest health equipment OEMs further solidifies our strong relationship with these companies and confirms that our sophisticated technology platforms meet meticulous standards for producing advanced medical devices," said Todd Plaisted, KDF director of Marketing. "We are proud to be part of a process that advances the quality of health care and treatment for thousands of people around the globe."

One of the leading health OEMs first purchased two KDF 744NT systems in April 2005. Today, all three tools are being used to manufacture digital X-ray diagnostic equipment that will enhance the diagnostic process for breast cancer doctors and patients, as well as expand medical applications such as fixed and remote diagnosis. The digital approach to diagnosis presents patients with matchless image quality, while also providing instantaneous re-shoots that eliminate the need to schedule additional appointments.

"The KDF 744NT provides physical vapor deposition sputtering, or state-of-the-art coating, of the X-ray screens in a high-throughput environment," Plaisted said. "Additional features like the vacuum loadlock, multiple substrate capacity and two processing pallets continue to enhance the speed and quality of manufacturing."

The 744NT is a large area, four-target, batch-sputtering system, designed for processing high-density interconnect, 200 mm semiconductor wafers, flat panel displays and other applications. The 744NT is equipped with a high-vacuum loadlock configured with a substrate pre-heat that enables the tool's high throughput. The tool's pallet area and compact footprint uses less than one-third the floorspace of competing equipment.

Additionally, KDF's 954NTX in-line sputtering system is being used for the manufacture of pacemaker components by another leading OEM. This marks the second 900NTX product purchased in less than two years by this company, which selected KDF's tool for its ability to create solid coatings and its Inset style cathodes feature. This cathode design provides extended lifetime and high utilization for thick coatings used on critical pacemaker components. The 954NTX comes equipped with sputter-down capability and easy substrate loading suited for medical applications which produce uniform films with an exacting, but repeatable, high-throughput process.

The customer also recently bought the 954ix tool, a new generation i system from KDF. This 954ix product has integrated the Company's newly patented Linear Moving Magnetron(TM) (LMM) full-face erosion sputter cathode in the Magterial(TM). This version has one of the highest material efficiencies for magnetic substances in the industry, providing increased source material lifetime and high performance for design and utilization.

"There is no margin for error in pacemaker manufacturing applications and KDF's superior coating technology meets these standards," Plaisted said. "We look forward to continuing our commitment to meet our customers' needs as medical technology advancements improve and change."

About KDF

KDF Electronic & Vacuum Services, Inc., produces batch in-line sputtering tools in a wide variety of R&D and production formats for the mainstream silicon, emerging materials and flat-panel display markets. KDF systems are used in the production of semiconductors, photomasks, telecommunications networks, wireless circuits, gallium arsenide (GaAs), high density interconnect, sensors, optoelectronics, flat panel display and radio frequency power devices. KDF is located in Rockleigh, New Jersey, and has representatives in Europe, Japan, Taiwan, Singapore, Malaysia, China and Korea. www.kdf.com