Micronic discontinues Sigma7100

Micronic discontinues Sigma7100 Taby, Sweden - February 5, 2004 - Micronic Laser Systems AB (Stockholmsborsen's Attract 40: MICR), a leading manufacturer of laser pattern generation equipment to the display and semiconductor industries. In 2002 Micronic Laser Systems AB shipped a Sigma7100 system to DuPont Photomasks Inc. (DPI). The parties have during an extensive period been engaged in negotiations concerning production performance. The parties have reached an agreement where DPI will return the system. Micronic received an order in 2002 for a Sigma7100 from another customer. The customer has postponed the delivery due to current market situation. The order is now removed from the order backlog. Micronic has decided to discontinue the Sigma7100, which will be replaced by Sigma7300. It is Micronic´s intention to rebuild both systems for future sales. The total cost including rebuilding, write down of accounts receivables and inventory, amounts to SEK107,5 millions and will be accounted for in year 2003. "The fact is that the Sigma7100 reached the market at the worst moment. The semiconductor industry has never experienced such a deep downturn as during the period 2001-2003. It is then natural that our industry, facing low volumes and severe price pressure, not just focus on lithographic performance but also all production related aspects ultimately affecting the cost of ownership. The Sigma7100, being the first generation of a brand new technology did unfortunately not meet the requirements for production stability. With this decision we have put the Sigma7100 behind us", says Sven Löfquist, President and CEO of Micronic Laser Systems AB and continues: "All the experiences that we have gained from the first generation of Sigma systems have been very valuable and has been implemented in the development of the Sigma7300. The Sigma7300 has demonstrated top performance well in line with the market needs for advanced mask writers aimed for volume production of photomasks down to the 65 nm node. Micronic´s strong order intake during the last 12 months has well passed SEK one billion. The adjusted order backlog, which in the end of 2003 amounted to SEK 764 millions, includes Sigma systems as well as products for display applications. With this order backlog we now stand stronger than ever in the ongoing recovery in the electronics industry." Company contact: Sven Löfquist President and CEO Tel: +46 8 638 52 00 sven.lofquist@micronic.se Agency contact: Vincent Mayeda The Loomis Group, Inc. Tel: +1 415 882 9494 vincent@loomisgroup.com About Micronic Laser Systems AB Micronic Laser Systems is a Swedish high-tech company engaged in the development, manufacture and marketing of a series of extremely accurate laser pattern generators for the production of photomasks. The technology involved is known as microlithography. Micronic's product offering also includes metrology systems for display photomasks. Micronic's systems are used by the world's leading electronics companies in the manufacture of television and computer displays, semiconductor circuits and semiconductor packaging components. Micronic is located in Taby, north of Stockholm and at present has subsidiaries in the United States, Japan and Taiwan. Micronic maintains a web site at: http://www.micronic.se ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2004/02/05/20040205BIT20020/wkr0006.pdf Complete document