Tegal Receives 6540 Plasma Etch System Order From the Pennsylvania State University for PZT MEMS and Other Complex Oxide Patterning Applications

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, today announced that it has received an order for a Tegal 6540 plasma etch tool from the Pennsylvania State University. The Tegal 6540 system will be installed in the Penn State Nanofabrication Laboratory, a National Science Foundation National Nanotechnology Infrastructure Network site, where the plasma etch tool will be used to perform research on complex oxide materials. Lead zirconate titanate (PZT), which is one of several complex oxide materials being studied at Penn State, is a piezoelectric material useful for fabricating MEMS devices such as wireless communication switches in next-generation cell phone handsets, and medical ultrasound transducers for diagnostic imaging. According to Professor Theresa Mayer, Associate Director, Materials Research Institute, and Professor of Electrical Engineering, "Penn State University has extensive experience in the deposition, etching, characterization, and integration of complex oxide thin films for piezoelectric, pyroelectric, tunable dielectric, and electro-optic device applications. The Nanofabrication Laboratory at Penn State offers our academic and industrial users unique access to these advanced processing capabilities. The Tegal 6540 plasma etching system that we purchased will add significant new strengths, for example the etching of thick PZT, to our growing suite of complex oxide device fabrication systems.” "Tegal is honored to have received an order from, and to be associated with, the world-class Materials Research Institute program on complex oxides at Penn State,” said Thomas Mika, President & CEO of Tegal Corporation. "Our Tegal 6540 plasma etching system is being used world-wide for volume commercial production, and also for research activities, for PZT-based devices. PZT is being increasingly deployed in MEMS and other microelectronic products for important new commercial applications, particularly in the cellular handset market. We are pleased to be recognized by the Materials Research Institute as a supplier of advanced plasma etching technology that meets Penn State’s leading-edge research needs, and we are also pleased we are known as a vendor capable of supporting the expectations of Penn State’s industrial partners for reliable processes and processing tools.” The Tegal 6540 is a high-density plasma etch tool featuring the unique HRe-™ reactor, and Tegal’s patented dual-frequency RF power technology and magnetic plasma confinement. The system is a critical enabler for etching noble metal electrode and capacitor materials, including PZT, as well as other ferroelectric, magnetic, high-K dielectric, compound semiconductor, and interconnect materials. 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 About The Pennsylvania State University Penn State is a multi-campus public research university that improves the lives of the people of Pennsylvania, the nation, and the world through integrated, high-quality programs in teaching, research, and service. Its instructional mission includes undergraduate, graduate, professional, and continuing and distance education informed by scholarship and research. Penn State research, scholarship, and creative activities promote human and economic development through the expansion of knowledge and its applications in the natural and applied sciences, social sciences, arts, humanities, and professions. As Pennsylvania's land-grant university, we also hold a unique responsibility to provide access, outreach, and public service to support the citizens of the Commonwealth and beyond. We engage in collaborative activities with industrial, educational, and agricultural partners here and abroad to generate, disseminate, integrate, and apply knowledge. For more information about Penn State, visit: http://www.psu.edu/