Tegal Receives Order for Advanced 6500 Spectra Etch Tool From Crocus Technology, SA; Unique Tegal Technology Selected for Commercializing MRAM Technology

"We are proud to have been selected for this important developmenteffort and strongly believe that, among the various efforts tocommercialize MRAM devices, Crocus Technology's approach is the mostpromising," said Thomas Mika, President and CEO of Tegal. "We lookforward to sharing our expertise and supporting Crocus Technology'sscientists and engineers to develop a commercially successful MRAMdevice. This order demonstrates our ability to provide unique toolsfor the manufacturing of next generation semiconductor technologies."

"We investigated all potential providers of equipment for thiscritical process step. We selected the Spectra etch tool on the basisof its unique capabilities and the outstanding support provided byTegal. We believe the Tegal Spectra tool will be a key factor in oursuccess," said Jean-Pierre Braun, Chief Executive Officer of CrocusTechnology SA.

The Tegal 6500 series tool features the Spectra ICP plasma sourceoptimized for the etching of magnetic thin films for GMR/TMR magnetichead and MRAM memory device technology. The Spectra reactor is anextension of Tegal's patented dual frequency technology for thepatterning of difficult-to-etch metal and metal oxide films based oninductively coupled plasma (ICP) technology. The Tegal 6550 alsoincorporates a dual-chamber platform with patented rinse-strip-rinseprocess capability that is proven to eliminate corrosion in thinmagnetic materials. Tegal's approach to magnetic thin film etchingincludes its proprietary "Stop-on-Dielectric" process capability.

Potential applications for MRAM include memory devices for mobilephones, PDAs, smartcards, notebook computers, RFID tags and as areplacement for flash memory.

Safe Harbor Statement

Except for historical information, matters discussed in this newsrelease contain forward-looking statements within the meaning ofSection 27A of the Securities Act and Section 21E of the Exchange Act.Forward-looking statements, which are based on assumptions anddescribe our future plans, strategies and expectations, are generallyidentifiable by the use of the words "anticipate," "believe,""estimate," "expect," "intend," "project" or similar expressions.These forward-looking statements are subject to risks, uncertaintiesand assumptions about the Company including, but not limited toindustry conditions, economic conditions, acceptance of newtechnologies and market acceptance of the Company's products andservices. All forward-looking statements attributable to us or personsacting on our behalf are expressly qualified in their entirety by thecautionary statements in this paragraph. For a further discussion ofthese risks and uncertainties, please refer to the Company's periodicfilings with the Securities and Exchange Commission.

About Tegal

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

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

About Crocus Technology

Crocus' mission is to become the leading supplier of products andtechnologies to the MRAM market. The MRAM technology that is thefoundation on which Crocus is built was developed in theGrenoble-based SPINTEC research center and is continuously improvedthrough formal joint development programs between the company, Spintecand other leading European laboratories. MRAM memories uniquelycombine several key features of other existing memory technologies.They are non-volatile, have a fast read and write speed, an SRAM likeinterface, an extended lifetime, and a low manufacturing cost. Crocusis headquartered in Grenoble (France) with operations in the Parisarea and in Silicon Valley (California)

For more information about Crocus, visit:www.crocus-technology.com