SEZ Group reports success

The SEZ Group increased consolidated operating profit (EBIT) in 1999 by 164 percent to CHF 12 M (1998: CHF 4.5 M) on net sales of CHF 83.7 M (CHF 62.1 M), a 35 percent increase. This equates to an EBIT margin of 14.3 percent (7.3 %). Net income improved to CHF 10.4 M (CHF 2.5 M). At the Annual General Meeting on May 9, 2000, a dividend of CHF 0.60 per registered share will be proposed. For the current year, the SEZ Group expects sales revenues to soar by around 67 percent to CHF 140 M with rising profit margins.

The SEZ Group closed the 1999 business year with a record order backlog of CHF 53.5 M (1998: CHF 1 M). In December 1999 the Group delivered more Spin-Processors than ever before in its history. In total, SEZ gained eleven new customers in the past business year: six from Southeast Asia and five from the USA. Some 400 units are installed with more than 70 semiconductor manufacturers worldwide in all major geographic markets. Of last year's consolidated sales of CHF 83.7 M, Asia accounted for 67.3 percent (1998: 35%), the USA for 20.3 percent (1998: 15.3%) and Europe for 12.4 percent (1998: 49.7%). In fiscal 1999, SEZ invested CHF 12.1 M or 14 percent of sales in research & development. A leading microchip manufacturer in the United States successfully completed evaluation of a new four-chamber Spin-Processor for processing wafer front sides. Southeast Asia has taken delivery of several newly developed dual-chamber processors, which significantly increase productivity. The SEZ Group also reinforced its global strategic alliances and cooperation agreements.

The first quarter of 2000 saw a continuation of the positive trend witnessed in the second half of 1999. In the first three months of the current business year, the SEZ Group reported an operating profit (EBIT) of CHF 9.0 M (previous year: CHF minus 3.1 M) and net income of CHF 6.4 M (CHF minus 1.7 M) on net sales of CHF 40.1 M (CHF 7.6 M). Orders in hand as per 31 March 2000 stood at CHF 57.8 M (1999: CHF 11.6 M). The book-to-bill ratio (the ratio of new orders to deliveries) in the first quarter of 2000 was 1.12 (1999: 2.54).

The unrivalled Spin-Process-Technology (a wet-process for wafer surface treatment in microchip production) developed by SEZ has established the Group as the world leader in this technology. You will find further information on the Group's home page at www.sez.com.

Villach/Zurich, April 07, 2000