Photon Dynamics Introduces ArraySaver 550 HFS LCD Array Repair System; Next Generation Technology to Address Fifth Generation Process with High Functionality at Competitive Price.

Business/Technology Editors

SAN JOSE, Calif.--(BUSINESS WIRE)--Oct. 29, 2002

Photon Dynamics, Inc. (Nasdaq NM: PHTN) today introduced its ArraySaver 550 HFS repair system (AS-550) HFS (High Functionality System), the next generation technology to address fifth generation processes -- the largest LCD substrates up to 1,200 x 1,300 mm -- with high functionality at a competitive price. The new system enables precision repair work for active matrix liquid crystal display (AMLCD) manufacturers, allowing them to further increase yield and reduce material costs over previous generation repair systems.

"We believe that this repair solution, combined with the new AC-3500 test solution, will further enable manufactures to optimize their factory production with a lower cost of ownership, stated Bernard T. Clark, president of the Flat Panel Display Division. "The AS-550 HFS new multi-wavelength laser feature improves the overall repair process to provide more consistent and reliable laser cutting and welding operations. Additionally, the new laser design allows for a simple, cost effective laser replacement method than previously provided," concluded Clark.

The AS-550 HFS also incorporates a faster auto focus capability to improve image focus more than two times, resulting in faster review and alignment - improving overall repair throughput by up to 30 percent compared to its predecessor.

Integrated Functionality

Photon Dynamics' complete integrated yield management solutions can be quickly configured for different panel layouts. Photon Dynamic's intuitive user interface, graphical tools, and utilities allow manufacturers the flexibility to enter customer-specific defect codes, update server files, access stored repair recipes, to automatically update defect files for repair reports to provide efficient, highly-functional, LCD array repair.

AS-550 HFS Features

-- Repairs with precise cuts or welds and induces proper laser-material interaction on amorphous and poly-silicon circuits.

-- Supports repair of Generation 5 glass sizes, up to 1,200 x 1,300 mm.

-- Bankless glass alignment -- improved algorithms drive a non-banking glass alignment operation that improves overall alignment and reduces handling errors.

-- New high reliability, multi-wavelength laser and feedback control system to provide consistent laser output for uniform laser cutting.

-- Improved Autofocus -- reduces the time required to focus on a defect from three seconds to less than 1.5 seconds, reducing alignment time by five seconds per plate and improving standard cycle time by 60 seconds or more depending on number of defects reviewed.

-- New modular design enables key components, such as the laser source, to be replaced in the field -- driving down total cost of ownership and boosting functionality.

-- Defect repair queue option -- An offline test (AC-3500) and repair strategy to provide integrated functionality and flexibility, thereby reducing equipment operator time in the cleanroom, and improving capacity by maximizing equipment utilization to enable repairs at machine speeds.

-- Transparent chuck option -- offers improved review performance, enabling operators to more accurately verify repairs and features a motorized illuminator, which is positioned directly beneath the objective for maximum brightness at 100X magnification.

About Photon Dynamics

Photon Dynamics is a leading global supplier of integrated yield management solutions for the display, electronics and glass markets. Photon Dynamics' patented image acquisition and image processing technology, electro-optical design, and system engineering expertise are currently used for: test, repair and inspection of flat panel displays; inspection of cathode ray tube displays and automotive glass; and inspection of printed wiring assemblies and advanced semiconductor packaging. Photon Dynamics develops systems that enable manufacturers to collect and analyze data from a production line, and quickly diagnose material costs and improve throughput to gain an incremental yield edge critical to success. Founded in 1986, Photon Dynamics has sales offices and customer support services in San Jose and Aliso Viejo, California; Beijing, Shanghai and Suzhou, China; Eindhoven, The Netherlands; Hsinchu and Taipei, Taiwan; Markham, Canada; Redhill, Surrey, UK; Bundang, Daejeon and Kumi, Korea; and Tokyo, Japan. For more information about Photon Dynamics, visit its Web site at www.photondynamics.com.

Safe Harbor Statement

This press release contains forward-looking statements relating to the benefits to be obtained from the ArraySaver 550 (AS-550), which are subject to risks and uncertainties. These risks include, without limitation that the results of the AS-550 may vary due to; difficulties in the integration of the software and hardware components; or other technical difficulties resulting from operator errors. For further information regarding risks relating to Photon Dynamics, refer to the section entitled "Factors Affecting Operating Results" in Photon Dynamics' Quarterly Report, filed August 12, 2002, filed with the Securities and Exchange Commission. Photon Dynamics undertakes no obligation to update the information in this press release.