SVTC, which operates the leading process development foundry in the U.S., serves the rapidly growing novel memory and transistor market, along with the MEMS/MOEMS, photovoltaics, biotechnology, image sensors and high-voltage markets. Tegal also announced, as part of the plasma etch equipment order, that Tegal and SVTC are working together on process recipe development for these applications.

According to Wilbur Catabay, Vice President of Technology, SVTC, "Tegal's production-proven 6500 platform was the obvious choice for our customers with advanced memory development programs. With the Tegal tool, we can offer even more significant time-to-market advantages for the specialized materials, processes, and integration requirements of advanced memory device development and productization. In addition, the 6500 platform will be important for other customers who need advanced plasma etch capabilities. We see Tegal as our preferred strategic etch supplier for these important applications."

"Tegal is pleased to have our 6500 Series system added to the impressive 8-inch processing tool set SVTC has already assembled," said Vahan Tchakerian, Vice President, Global Sales and Field Operations, Tegal Corporation. "The Tegal 6500 will support SVTC's companies needing specialized metal film etch, including but not limited to applications in non-volatile memory. We also expect to have a good collaboration with SVTC on process development for leading-edge applications in the advanced memory space, along with the other etch markets that SVTC serves."

The Tegal 6500 system is a high-density plasma etch tool featuring the unique HRe-(TM) capacitively coupled plasma etch reactor, and Tegal's patented dual-frequency RF power technology and magnetic plasma confinement. Together with its on-board photoresist strip module and spin-rinse-dry station, the Tegal system is a critical enabler for etching the metal electrodes and storage cell materials used in advanced memory fabrication, as well as other ferroelectric, magnetic, high-K dielectric, compound semiconductor, and interconnect materials found in the MEMS/MOEMS, photovoltaic, bio-tech and hi-voltage markets.

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.

Tegal will be exhibiting at SEMICON West 2008, in San Francisco, CA, on 15, 16, and 17 July 2008. Please visit us at the Moscone Center, South Hall, Booth #1921.

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

About SVTC Technologies

SVTC Technologies enables the development and commercialization of innovative semiconductor-based technologies and products in an accelerated, cost-effective and IP-secure way. Since joining forces with ATDF, SVTC now offers an even more powerful suite of leading-edge equipment and services, including full-scale 8-inch (200mm) and 12-inch (300mm) CMOS and MEMS process capabilities, development support tools and commercialization services. SVTC's San Jose, Calif., and Austin, Texas, facilities deliver operational excellence and faster time to revenue, allowing customers to create real, manufacturing-ready products for rapidly growing markets such as MEMS/MOEMS, photovoltaics, biotech, novel memory, image sensors and high-voltage applications.