Ultratech Announces Acquisition of Certain Assets of Oraxion, Inc.

Ultratech, Inc. (Nasdaq: UTEK), a leading supplier of lithography and laser-processing systems used to manufacture semiconductors and nanotechnology devices, today announced it has acquired certain assets of Oraxion, Inc., a manufacturer of advanced surface-metrology and stress-analysis equipment for the semiconductor and related industries. Ultratech's management considers this transaction an important component of its strategic growth endeavors in the laser-processing arena. The company plans to utilize Oraxion's CGS-300 wafer inspection/metrology tool in conjunction with its own LSA100 laser spike anneal system used for 65nm and other next-generation devices.

Ultratech Chairman and CEO Arthur W. Zafiropoulo explained, "Oraxion's CGS-300 wafer inspection and metrology tool adds another important technology to our existing product portfolio. In tandem with our LSA100, the CGS-300 provides key capabilities that will further enable the ongoing adoption of our laser spike annealing tools for the manufacture of leading-edge semiconductors. This acquisition allows us to create a fusion of specific technologies that will add significant value to our advanced-device processing systems and ideally position Ultratech to better serve our global customer base."

The CGS-300 represents the next generation of stress metrology tools, enabling highly accurate characterization of stress accumulation as the patterned wafer is processed. As opposed to traditional metrology tools, which produce "full" wafer maps using only 300 points of data on a blanket film at a throughput of 2 wph, the CGS-300 uses a coherent gradient sensing (CGS) metrology to simultaneously provide nearly 600,000 points of data at a throughput of approximately 15 wph. Ultratech believes this combination of speed and accuracy is essential to meeting leading-edge fabs' continually escalating demand for higher throughput and yields.

Certain of the statements contained herein, which are not historical facts and which can generally be identified by words such as "anticipates," "expects," "intends," "will," "could," "believes," "estimates," "continue," and similar expressions, are forward-looking statements under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risks and uncertainties, such as risks related to integration of Oraxion's technology and products with our technology and products and market acceptance thereof; our dependence on new product introductions and market acceptance of new products and enhanced versions of our existing products; lengthy sales cycles, including the timing of system installations and acceptances; lengthy and costly development cycles for laser-processing and lithography technologies and applications; integration, development and associated expenses of the laser processing operation; delays, deferrals and cancellations of orders by customers; cyclicality in the semiconductor and nanotechnology industries; pricing pressures and product discounts; high degree of industry competition; intellectual property matters; expiration of licensing arrangements, and the resulting adverse impact on our licensing revenues; changes to financial accounting standards; changes in pricing by us, our competitors or suppliers; customer concentration; international sales; timing of new product announcements and releases by us or our competitors; ability to volume produce systems and meet customer requirements; sole or limited sources of supply; ability and resulting costs to attract or retain sufficient personnel to achieve our targets for a particular period; dilutive effect of employee stock option grants on net income per share, which is largely dependent upon us achieving and maintaining profitability and the market price of our stock; mix July 2006 has been acquired by of products sold; rapid technological change and the importance of timely product introductions; outcome of litigation; changes in accounting policies or interpretations of such policies; manufacturing variances and production levels; timing and degree of success of technologies licensed to outside parties; product concentration and lack of product revenue diversification; inventory obsolescence; asset impairment; effects of certain anti-takeover provisions; future acquisitions; volatility of stock price; foreign government regulations and restrictions and the exporting of sensitive technologies and jobs to certain countries; business interruptions due to natural disasters or utility failures; environmental regulations; and any adverse effects of terrorist attacks in the United States or elsewhere, or government responses thereto, or military actions in Iraq, Afghanistan and elsewhere, on the economy, in general, or on our business in particular. Such risks and uncertainties are described in Ultratech's SEC reports including its Annual Report on Form 10-K filed for the year ended December 31, 2005 and its Quarterly Report on Form 10-Q for the quarter ended April 1, 2006. Due to these and additional factors, the statements, historical results and percentage relationships set forth herein are not necessarily indicative of the results of operations for any future period. These forward-looking statements are based on management's current beliefs and expectations, some or all of which may prove to be inaccurate, and which may change. We undertake no obligation to revise or update any forward-looking statements to reflect any event or circumstance that may arise after the date of this release.

About Ultratech: Ultratech, Inc. designs, manufactures and markets photolithography equipment used worldwide in the fabrication of semiconductor and nanotechnology devices, and has expanded its technology scope in pioneering laser processing technology for IC manufacturing. Founded in 1979, Ultratech is a market leader in gold and solder bump lithography. Its products are designed to substantially reduce the cost of ownership for manufacturers in the electronics industry. The company's home page on the World Wide Web is located at www.ultratech.com.


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Ultratech, Inc.

Bruce R. Wright | Senior Vice President & CFO
Laura Rebouche | Vice President | Investor Relations and Corporate Communications | [email protected] | +1 408 321 8835 | Fax +1 408 577 3379
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