SEZ Group Adjusts 2001 Forecast

The SEZ Group has adjusted its forecast for business year 2001 in light of the current market situation. The company now expects that net sales will be between CHF 250 million and CHF 260 million [Euro 164 million and 170 million]. Based on these figures, the adjusted expectation for the EBIT-margin is between 17 and 19 percent, while that of the net profit margin is between 11 and 13 percent. By reaching this forecasted sales level, the SEZ Group increases its net sales by 28 to 33 percent over the year 2000.

Due to the still uncertain situation following the terror attacks on 11 September 2001, many of the important international semiconductor manufacturers have delayed planned investments. Additionally, in recent days the SEZ Group has seen a number of shipping dates delayed and experienced some cancellations. Another contributing factor is that the recent orders received by the SEZ Group, especially for systems to produce 300 mm wafers, will be shipped next year (2002). On the basis of this changed environment the SEZ Group has evaluated its short- and mid-term potential and accordingly adjusted its expectations for net sales and profit to this new market situation.

The renewed delay that appears to have pushed out the next upward cycle within the global market for semiconductor equipment is expected to intensify the consolidation within the semiconductor and semiconductor equipment manufacturing market sectors. The SEZ Group is well placed to actively take advantage of this development because of the company's high liquidity, solid financial situation and its proprietary and unique Spin-Process technology. The company also remains in an excellent position to profit from the recovery of the market situation.

Villach/Zurich, October 01, 2001