Tegal Receives Endeavor AT(TM) PVD Tool Order from Major Global Maker of Discrete and Analog Semiconductor Components; Endeavor AT Will Improve Volume Production Line Yield and Device Yield on Thin Wafer Backside Metallization Applications for First-Time Tegal Customer;

Tegal Corporation (Nasdaq:TGAL), a leading designer and manufacturer of plasma etch and deposition systems used in the production of integrated circuits, MEMS, and nanotechnology devices, announced today that the Company received an order for an Endeavor AT PVD cluster tool from a leading global manufacturer of discrete and analog semiconductor components for the consumer electronics, industrial, and automotive markets. The Endeavor AT PVD system will ship this quarter, and will be used by Tegal's customer for backside metallization applications on thin wafers at the customer's domestic, ISO-certified wafer fab.

"We successfully demonstrated the superior wafer handling and film adhesion capabilities of the Endeavor AT PVD system for thin wafer backside metallization applications to our customer, and we are pleased to have been selected for this order on the basis of those results," said Pavel Laptev, PVD Product Manager, Tegal Corporation. "Once the Endeavor AT tool is released into volume production, we are confident our customer will see improvements for this critical application in both their line and device yields. The S-Gun deposition module at the heart of the Endeavor is key to its versatility in handling thin wafers and providing superior metal film adhesion results while allowing tight control over film stress."

The Tegal Endeavor ATsystem is a state-of the-art, ultra-high vacuum PVD cluster tool used in production fabs to deposit consistent, high purity films, with low to zero stress values, in an extremely clean process environment. Low stress films are widely utilized in backside metallization for power and discrete devices, under-bump metallization applications, advanced packaging, photo masks (including EUV), high-brightness light emitting diodes (HB-LEDs), and in creating electro-acoustic devices for FBARs and RF MEMS. The Endeavor AThas an easy-to-use GUI, SECS/GEM communication, reliable low-contact wafer handling, and flexible wafer shape and size capability, that makes it ideal for ultra-clean production environments for both front-side and back-side applications. Optional damage-free soft-etch modules, and a variety of DC, AC, and RF magnetron configurations, are available to sputter the many different dielectric and conductive films used in semiconductor, MEMS, and other electronic device production.

Safe Harbor Statement

Except for historical information, matters discussed in this news release contain forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements, which are based on assumptions and describe our future plans, strategies and expectations, are generally identifiable by the use of the words "anticipate," "believe," "estimate," "expect," "intend," "project" or similar expressions. These forward-looking statements are subject to risks, uncertainties and assumptions about the Company including, but not limited to industry conditions, economic conditions, acceptance of new technologies and market acceptance of the Company's products and services. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements in this paragraph. For a further discussion of these risks and uncertainties, please refer to the Company's periodic filings with the Securities and Exchange Commission.

About Tegal

Tegal provides process and equipment solutions to leading edge suppliers of advanced semiconductor, MEMS, and nanotechnology devices. Incorporating unique, patented etch and deposition technologies, Tegal's system solutions are backed by over 35 years of advanced development and over 100 patents. Some examples of devices enabled by Tegal technology are energy efficient memories found in portable computers, cellphones, PDAs and RFID applications; megapixel imaging chips used in digital and cellphone cameras; power amplifiers for portable handsets and wireless networking gear; and MEMS devices like accelerometers for automotive airbags, microfluidic control devices for ink jet printers; and laboratory-on-a-chip medical test kits.

For more information about Tegal Corporation, visit:www.tegal.com