SAN FRANCISCO, Calif. - Ultratech Stepper, Inc. (Nasdaq NM: UTEK), Varian Semiconductor Equipment Associates, Inc. (Nasdaq NM: VSEA) and Tokyo Electron Limited (TEL) today announced that they have joined forces to establish the industry's first advanced technology center dedicated to ultra-shallow junction formation for the sub-70 nanometer technology node. Upon completion, the Advanced Technology Center will feature the core process technologies needed to create a fully integrated solution for ultra-shallow junction formation. Each member of the alliance will contribute state-of-the-art equipment and technological expertise in their respective arena, namely: ion implant and plasma doping from Varian Semiconductor; thin-film deposition from TEL; and laser thermal processing from Verdant Technologies, Inc., a division of Ultratech Stepper.

Together, these advanced tools and technologies are intended to enable customers to expedite scaling of their integrated circuit (IC) designs to meet the demands of the accelerated International Technology Roadmap for Semiconductors (ITRS). As highlighted in the ITRS, scaling of diffused junctions is considered one of the critical challenges for complementary metal-oxide semiconductor (CMOS) technologies at the 100 nm and smaller design nodes, and is essential to advancing performance of future semiconductor devices.

The goal of the new process center is to provide customers with the advanced technology tools, process and integration expertise needed to deliver a comprehensive scaling path. This includes the world's only pulsed-plasma ion implant and next-generation thin-film deposition tools, as well as the industry's first laser thermal processing solution. All three of these advanced technologies are expected to resolve key technological hurdles that could hinder production success of future device generations.

According to G. Dan Hutcheson, president of VLSI Research, "Continued advancements in shallow-junction technology are a key issue for the future of our industry. This alliance teams three top suppliers who have both the horsepower and commitment required to take on the sub-70 nm challenge and successfully pull it off."

Remarking on the alliance, Varian Semiconductor Chairman and CEO Richard A. Aurelio noted that Varian Semiconductor has successfully collaborated with both Ultratech and TEL in the past?developing a new process for junction activation with Ultratech and cooperating with TEL on the development of its metal deposition system. "This alliance takes our collaboration to an entirely new level, since we will now integrate the key processes provided by each of the alliance members to create a complete solution set for our global customers. In order to meet the needs of the sub-70 nm technology nodes, Varian Semiconductor has developed the VIISta 10 P2LAD system for ultra low-energy doping processes. The VIISta 10 provides 100 times more beam current than traditional beamline ion implants at low energies, resulting in greater than an order of magnitude increase in productivity for customers' critical implants. Also, the pulsed-plasma approach used in the VIISta 10 generates dopant profiles consistent with achieving the RS sheet resistance and XJ junction depths required by ITRS roadmaps."

Echoing the need for strategic collaboration among best-of-breed suppliers, Tetsuro Higashi, CEO and president of TEL, explained, "The pace of today's technology innovation escalates customer requirements for integrated solutions that can meet the aggressive process specifications of sub-70 nm technology nodes. We look forward to leveraging our expertise in physical vapor deposition and chemical vapor deposition to help identify and solve process challenges, while optimizing our core technologies for best-in-class results."

According to Ultratech Chairman and CEO Arthur W. Zafiropoulo, "An alliance of this magnitude-involving three leading global equipment suppliers-brings together the latest equipment and brightest minds in the industry to help customers reduce production risk and accelerate their ROI on these very advanced devices. With the alliance partners optimizing their own core process elements, and then working collectively to expedite the development of a fab-ready, sub-70 nm solution, we will be able to fulfill our customers' needs for seamlessly integrated process and hardware solutions. More importantly, we will be able to provide them with the superior transistor results we believe will be required in all future device generations, while paving the way for accelerated junction breakthroughs in the years ahead."

The 20,000-square-foot Advanced Technology Center is currently under development and slated for completion in the fourth quarter of calendar year 2001. It will be located at 2865 Zanker Road, in San Jose, Calif., in close proximity to Ultratech Stepper's corporate campus.

About Varian

Varian Semiconductor Equipment Associates is the leading producer of ion implantation equipment used in the manufacture of semiconductors, and an innovator of plasma doping. The company is headquartered in Gloucester, Massachusetts, and operates worldwide. Varian Semiconductor maintains a web site at www.vsea.com. The information contained in our web site is not incorporated by reference into this release, and our web site address is included in this release as an inactive textual reference only.





About Ultratech

Founded in 1979, Ultratech Stepper, Inc. designs, manufactures and markets photolithography equipment used worldwide in the fabrication of integrated circuits, microsystems devices, and thin film heads for disk drives. As the leader and pioneer in laser thermal processing, the company produces products that substantially reduce the cost of ownership for manufacturers in the electronics industry. The company's home page on the World Wide Web is located at www.ultratech.com

rs in the electronics industry. The company's home page on the World Wide Web is located at www.ultratech.com