SEZ Group reports outstanding first half
– record order intake at end-July 2000

In the first half of 2000 the SEZ Group raised consolidated net sales 249% to CHF 77.1 million (1st half of 1999: CHF 22.1 million). Operating profit (EBIT) in the first half of 2000 came to CHF 16.8 million (CHF minus 1.8 million); at 30 June 2000, the SEZ Group had achieved an EBIT margin of 21.2%. Net income for the first six months increased significantly over the year-back period to CHF 12.1 million (1999: CHF 0.8 million), which amounted to 15.7% of sales. In view of the company's very good performance in the first half and continued buoyant demand, management at the SEZ Group is confident that it will reach its sales target of CHF 160 - 170 million and a net profit margin of 16% for the full year 2000.

Demand for SEZ spin-processors increased steeply again in July 2000. Orders in hand at 31 July 2000 showed a significant month-on-month increase from CHF 74.2 million to CHF 105.0 million. Seven months into the current financial year 2000, the SEZ Group had its largest order intake ever of CHF 147.5 million. In the same period, the SEZ Group delivered equipment worth CHF 96.0 million. The book-to-bill ratio (the ratio of new orders to deliveries) stood at 1.53 at the end of July.

In the current business year, 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. In particular, the continued strong demand for SEZ spin processors confirms the SEZ Group's leading position in the market for semiconductor manufacturing equipment.

Forthcoming dates:
The full report on the first half of 2000 will be published on 7 September 2000.

Villach/Zurich, August 16, 2000