Lambda to Exit Lithography Business

SANTA CLARA, Calif., Dec. 15 -- Coherent Inc. announced today that its Lambda Physik subsidiary will discontinue future product development and investments in the semiconductor lithography market. It will continue to support its installed lithography base. As a result of this decision, the company expects to take an after-tax charge of between $3 and $6 million during the first quarter ending Jan. 1, 2005. These charges are primarily related to excessive and obsolete inventories.

John Ambroseo, Coherent's president and CEO, said,"Based upon careful analysis of market conditions, Lambda management concluded its new 193-nm LithoTex laser will not generate a satisfactory economic return, and its deployment has been cancelled. The anticipated savings resulting from these transactions, which will begin in calendar 2005, will be disclosed during the upcoming first fiscal quarter earnings conference call Jan. 25, 2005."

For more information, visit: www.coherent.com

Published: December 2004

Glossary

lithography: Lithography is a key process used in microfabrication and semiconductor manufacturing to create intricate patterns on the surface of substrates, typically silicon wafers. It involves the transfer of a desired pattern onto a photosensitive material called a resist, which is coated onto the substrate. The resist is then selectively exposed to light or other radiation using a mask or reticle that contains the pattern of interest. The lithography process can be broadly categorized into several...