Ultratech Stepper Receives Multiple Orders From Read-Rite; Systems will be used to manufacture data storage devices at Read-Rite's U.S.-based fabrication plants.

SAN JOSE, Calif.--(BUSINESS WIRE)--Feb. 7, 1996--Ultratech Stepper, Inc. (NASDAQ:UTEK), a leading supplier of photolithography steppers used to manufacture semiconductors and thin film heads for disk drives, announced today that Read-Rite Corporation (NASDAQ:RDRT) has placed multiple orders for Ultratech's Model 2700 and Model 4700 steppers.

Read-Rite, the world's leading independent supplier of thin film recording heads (TFHs) to the global disk drive industry, utilizes Ultratech steppers in its U.S.-based wafer fabrication plants to manufacture inductive and magneto-resistive (MR) thin film heads. Currently, the company is shipping inductive heads with storage densities in excess of 500 MB per 3.5-inch disk, and is developing heads targeting densities of 1 GB per disk.

Ultratech's Senior Vice President of Sales and Service Daniel Berry noted, "The success of the five-year relationship between Ultratech and Read-Rite, along with the ability of Ultratech's TFH systems to increase productivity, factored into these follow-on orders valued at over $10 million. Working together with long-standing customers such as Read-Rite, we have designed our systems to address the needs specific to this ever-changing industry."

The Model 4700 is a third-generation tool that is designed to enhance yield and productivity in the manufacturing of advanced thin film inductive devices and MR heads. With its increased 55mm x 18mm exposure area, the system can expose the entire width of a two-inch strip of devices -- a breakthrough in performance for a TFH lithography tool. The wide-field exposure capability of the Model 4700 is designed to provide a 50-percent reduction in the number of exposures, or steps, imaged on the wafer, and offers 80nm colinearity for improved throat height control.

The system also features a bar-code reader to verify the reticle used for each level, a reticle library allowing greater automation, and machine vision system (MVS) for optical alignment target elimination.

Ultratech's Model 2700 can be configured for 1.0 micron or 1.2 micron resolution and features a high production throughput. This high throughput is enabled by the stepper's wafer plane illumination system that exposes the thick photoresist associated with TFH manufacturing and by its wafer transferring capability.

About Ultratech

Founded in 1979, Ultratech Stepper, Inc. designs, manufactures and markets photolithography steppers used worldwide in the fabrication of semiconductor and thin film heads for disk drives. The company produces high-technology products that substantially reduce the cost of ownership for manufacturers in the electronics industry. Ultratech's common stock is traded on the NASDAQ Stock Market under the symbol UTEK.

CONTACT: Ultratech Stepper Inc., San Jose

Scott Zafiropoulo, 408/577-3116

or

MCA Inc.

Diane Hayward, 415/968-8900