SEZ Group: Higher sales and profits forecast for 2000 and 2001

The SEZ Group is raising its sales projections for fiscal 2000 to around CHF 190 million (the previous forecast was CHF 160-170 million). For the current business year, SEZ anticipates an EBIT margin of around 23% and a net profit margin of around 16%. For business year 2001 management is aiming to lift sales to around CHF 260 million (previously CHF 250 million), with slightly higher profit margins. On the back of buoyant demand for SEZ Spin- Processors, the Group quadrupled its consolidated sales in the third quarter of 2000 to CHF 60.6 million (3rd quarter 1999: CHF 15.6 million). For the first nine months sales increased to CHF 137.7 million (CHF 37.7 million) with an EBIT margin of around 23%.

The revised profit projections for fiscal 2000 reflect the large number of SEZ Spin-Processors delivered for expanding production and upgrading of existing fabs of international semiconductor manufacturers. Orders from leading microchip producers in the U.S. and Europe increased in the third quarter of 2000 at a faster rate than did orders from Asia. On balance, the period from July to September 2000 saw SEZ land new orders worth CHF 89 million. Nine months into the current business year, SEZ now has new orders amounting to CHF 190 million (1999: CHF 103 million) and an order backlog at September 30, 2000 of CHF 105 million (1999: CHF 63 million). The book-to-bill ratio for the period from January 1, 2000 to September 30, 2000 was 1.38.

The SEZ Group has succeeded in establishing its unrivalled spin process technology as a world industry standard. Pioneered by the Group, this wet-etching process is used for wafer surface preparation in the production of microchips. For further information please visit the SEZ website www.sez.com.

Villach/Zurich, October 12, 2000