Photronics Hosts Grand Opening Ceremonies in Shanghai, CHINA; Newly Constructed Photomask Fabrication Facility Will Support Expanding Chinese Semiconductor Industry

Photronics, Inc. (Nasdaq:PLAB), a worldwide leader insupplying innovative imaging technology solutions for the globalelectronics industry, announced today that ceremonies were held tocommemorate grand opening of the Company's semiconductor photomaskmanufacturing facility. Semiconductor manufacturing customers,government officials and local community leaders joined members of thePhotronics management team to tour this newly constructed photomaskfabrication facility and meet with members of Photronics' localmanufacturing and sales organization. Located in the ZhangjiangSemiconductor Industrial Park, the facility is the first merchantphotomask fabrication facility to be brought on-line in the Shanghairegion for more than a decade. Production at the facility will beinitiated in the fourth quarter of this year.

"Our new Shanghai facility represents the completion of anotherstrategic action by positioning Photronics to serve one of the fastestgrowing semiconductor design and manufacturing regions in the world.Its capabilities and the enthusiasm of our employees will play a vitalrole in expanding our share of this fast growing market," statedMichael J. Luttati, Chief Executive Officer of Photronics. "As ourcustomer base in China and throughout the rest of Asia continues togrow, we will leverage our globally integrated network, robustprocesses and our keen focus on customer service to enhance thedifferentiated value that Photronics can uniquely deliver."

Dr. Soo Hong Jeong, Chief Operating Officer and President ofPhotronics Asia added, "China is one of the most rapidly evolvingtechnology markets in the world. As such, our Shanghai operation is astrategic element in building a strong competitive position forPhotronics, one from which our commitment to our customers' successwill enable our Company to expand on its leadership positionthroughout Asia and around the world." He added, "Photronics' broadbased understanding of the lithography challenges posed in migratingto more complex process nodes is creating opportunities which, as astrategic supplier, enable Photronics to improve both yield andproductivity within China's growing semiconductor industry. Our entireteam will be working with one objective in mind - we must be certainthat every mask set we deliver contributes to the success of ourcustomers in the marketplace."

Photronics is a leading worldwide manufacturer of photomasks.Photomasks are high precision quartz plates that contain microscopicimages of electronic circuits. A key element in the manufacture ofsemiconductors and flat panel displays, photomasks are used totransfer circuit patterns onto semiconductor wafers and flat panelsubstrates during the fabrication of integrated circuits, a variety offlat panel displays and, to a lesser extent, other types of electricaland optical components. They are produced in accordance with productdesigns provided by customers at strategically located manufacturingfacilities in Asia, Europe, and North America. Additional informationon the Company can be accessed at www.photronics.com.

"Safe Harbor" Statement under the Private Securities LitigationReform Act of 1995: Certain statements in this release are considered"forward looking statements" within the meaning of the PrivateSecurities Litigation Reform Act of 1995. All forward lookingstatements involve risks and uncertainties. In particular, anystatement contained in this release regarding the consummation andbenefits of future acquisitions, expectations with respect to the MPMask Technology Center LLC joint venture with Micron Technology, theplanned fabrication facilities, future sales, financial performance,operating efficiencies and product expansion, are subject to known andunknown risks, uncertainties and contingencies, many of which arebeyond the control of the Company. These factors may cause actualresults, performance or achievements to differ materially fromanticipated results, performances or achievements. Factors that mightaffect such forward looking statements include, but are not limitedto, overall economic and business conditions; the demand and receiptof orders for the Company's products; competitive factors in theindustries and geographic markets in which the Company competes;changes in federal, state and foreign tax requirements (including taxrate changes, new tax laws and revised tax law interpretations); theCompany's ability to place new equipment in service on a timely basis;interest rate fluctuations and other capital market conditions,including foreign currency rate fluctuations; economic and politicalconditions in international markets; the ability to obtain a new bankfacility or other financings; the ability to achieve anticipatedsynergies and other cost savings in connection with acquisitions andproductivity programs; uncertainties with respect to the integrationand management of a new joint venture, delays in the construction andequipping of the planned fabrication facilities, the ability totransfer licensed applications to other applications, the timing,impact and other uncertainties of future acquisitions and investments;the seasonal and cyclical nature of the semiconductor industry; theavailability of capital; management changes; damage or destruction toour facilities by natural disasters, labor strikes, political unrestor terrorist activity; the ability to fully utilize its tools; theability of the Company to receive desired yields, pricing, productmix, and market acceptance of its products; changes in technology; andother risks and uncertainties set forth in the Company's SEC filingsfrom time to time. Any forward-looking statements should be consideredin light of these factors. The Company assumes no obligation to updatethe information in this release.