OBDUCAT ENTERS INTO AGREEMENT WITH SAMSUNG ELECTRONICS

Obducat AB has entered into an agreement with Samsung Electronics regarding production of stampers1 for the development of Advanced Optical Discs2 (AOD).

Within this agreement, Obducat will deliver stampers, which are to be used by Samsung for the development of next generation Blu-ray3 format. The storage capacity of this new format will be 100GB per layer, in comparison with today’s capacity of 25GB. Pending a successful outcome of Samsungs development activities, Samsung has the intention to invest early 2006 in own EBR4 capacity for production of stampers. In this respect, Obducat is a highly potential supplier. This represents a further establishment of the world leading position Obducat can claim as a supplier of production technology for future formats of optical storage media.

In order to facilitate the execution of these joint development activities with Samsung and in order to ensure an optimal usage of available project resources, a re-allocation of resources towards AOD and the Samsung project will be carried out. This implicates a termination of the EBR activities Obducat since long has been engaged in together with TDK regarding patterned media5 for hard drives. This has been necessary, for time reasons, but is at the same time regrettable since TDK uses NIL equipment from Obducat.

However, Obducat will commence other on-going activities with companies within the hard drive industry, companies who are deemed to be closer to industrialization, from a technical as well as a commercial point-of-view. Obducat has recently produced test patterns for patterned media hard drives representing a storage capacity of some 400 Gbit/in2 6 representing a storage capacity four times higher than what is presently supplied to the consumer market.

This step is entirely in harmony with Obducat’s focusing on projects being evident regarding commercial potential as well as expected time-to-market. Obducat will continuously make assessments of on-going projects in order to ensure an appropriate allocation of resources, primarily towards interested parties fulfilling stated time plans.

Patrik Lundström, CEO Obducat, comments:

“By means of the renewal of the EBR products, Obducat has been able to verify a capability to produce stampers enabling the hard drive industry to produce hard drives with NIL with such a high storage capacity, that this industry will be in a position to fulfil its product road map. With these results at hand, it was a logical as well as a necessary decision to discontinue activities with TDK in favour of other on-going activities with other hard drive industry players.

At the same time, the agreement with Samsung will simplify our internal prioritisation, since we are now in position to co-operate with one of the definite leaders also within the optical storage media industry”.

For further information please contact:

Patrik Lundström, CEO, +46 40 36 21 00 or +46 703 27 37 38

1 A Stamper is an original used for mass replication purposes

2 AOD is the expression used for next generation Blu-ray technique with further enhanced storage capacity. A majority of the world leading electronics manufacturers are presently engaged in the development of this technique for future generations of optical storage media. The development work encompasses structural geometries as well as new reading technology.

3 Blu-ray represents one of the subsequent techniques to DVD.

4 Electron Beam Recorder (electron beam lithography on rotating substrates)

5 Patterned media is the expression used for next generation data storage technology for hard drives

6 100 billion bits per square inch

Obducat AB is an innovative developer and supplier of technologies, products and processes used for the production and replication of advanced micro and nano structures. Obducat’s products and services are intended to serve the demands of companies within the information storage, semiconductor, printed circuit board, and sensor industries. Obducat’s technologies include electron beam and nano imprint technology. Obducat has offices in Sweden and the UK, with the head quarters located in Malmö, Sweden. The Obducat shares are publicly traded on the Swedish NGM stock exchange.

Read more at www.obducat.com