SEZ Group Enlarges Technology Base with Strategic Acquisition of Wet Bench Manufacturer

The SEZ Group (SWX Swiss Exchange: SEZN) announced that it has taken over HMReinraum-Technik Ltd. (HMR), a wet bench manufacturer based in Donaueschingen, Germany. This acquisition makes the SEZ Group the first equipment supplier to develop and market globally complete process solutions for the entire wet processing market. As part of the integration, SEZ will invest in a capacity expansion at HMR's existing manufacturing facilities and in the development of wet benches for 300 mm semiconductor wafer manufacturing. As a result of the takeover, the SEZ Group expects overall sales revenues to climb by CHF 30 million to CHF 290 million, with slightly decreasing profit margins for business year 2001. These estimates are based on the consolidation of HMR effective January 01, 2001. Compared to previously published estimates, SEZ expects earning per share to grow by 4.6 percent to CHF 34.12.

With its Spin-Process technology, the SEZ Group is already the market leader for backside wafer treatment. The market for backside processing represents about 20 percent of the total wet wafer processing market, which has a total annual market volume of approximately USD 3 billion. By incorporating HMR's wet bench manufacturing knowledge and capability, SEZ can now offer customers complementary wet processing applications outside of its traditional core market. With its recently launched double sided Spin-Processor 8200 and the addition of wet bench technology, SEZ now possesses a complete product portfolio for all wet wafer surface preparation.

SEZ plans to establish a competence center for wet bench technology at the former HMR headquarters and manufacturing facilities in Donaueschingen. In the current business year, SEZ's primary focus will be to fully integrate the company into the SEZ Group and to develop wet benches for 300 mm wafers. For the remainder of 2001, SEZ will concentrate on servicing HMR's existing European customer base. Starting in 2002, SEZ will market its new wet bench products to chip manufacturers in the USA and Asia.

The SEZ Group is a leading supplier of wet wafer surface preparation equipment to the global semiconductor manufacturing industry. The company's breakthrough proprietary Spin-Processor technology forms the basis of a broad portfolio of single wafer backside and frontside wafer surface conditioning products for semiconductor chipmakers worldwide. Additionally, the company offers a complete range of wet bench equipment for batch processing. SEZ maintains development, manufacturing, sales, marketing and service operations in Europe, Asia and North America. Registered in Zurich, Switzerland, SEZ Holding AG is listed on the Swiss Exchange under the symbol (SWX: SEZN). SEZ also can be found on the world wide web at www.sez.com