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Harris Semiconductor Inks Supply Agreement With Align-Rite for Photomask Products

PALM BAY, FL, August 5, 1999 – Harris Semiconductor announced today that it has entered into an exclusive, long-term strategic supply agreement with Align-Rite International, Inc. (Nasdaq: MASK) for photomask products and services. Financial terms of the agreement were not disclosed. Align-Rite will fulfill Harris’ photomask requirements primarily from its new facility in Palm Bay, Florida, Align-Rite Inc. Align-Rite acquired the operation, formerly Harris Semiconductor’s Imaging Technology Group (ITG), on July 2, 1999.


PALM BAY, FL, August 5, 1999 – Harris Semiconductor announced today that it has entered into an exclusive, long-term strategic supply agreement with Align-Rite International, Inc. (Nasdaq: MASK) for photomask products and services. Financial terms of the agreement were not disclosed. Align-Rite will fulfill Harris’ photomask requirements primarily from its new facility in Palm Bay, Florida, Align-Rite Inc. Align-Rite acquired the operation, formerly Harris Semiconductor’s Imaging Technology Group (ITG), on July 2, 1999.

Photomasks are precision photographic quartz or glass plates containing microscopic images of integrated circuits (ICs) which are used as master images to transfer circuit patterns onto semiconductor wafers during the fabrication process.

"We’re pleased to have Align-Rite as a partner in our manufacturing process and are confident in their ability to deliver leading-edge photomask manufacturing services," said Gregory L. Williams, President of Harris Semiconductor. "They have an outstanding reputation, and this agreement will enable us to continue our leadership role in supplying semiconductors to the communications, power and space/defense markets by giving our company on-site and priority access to world-class, cost-competitive photomask products and services."

James L. MacDonald, Chairman and Chief Executive Officer of Align-Rite International, commented, "We are proud that Harris Semiconductor has chosen to expand upon our seven year strategic relationship with ITG by selecting Align-Rite as its exclusive supplier of photomask products and services. Our acquisition of ITG fulfilled one of Align-Rite’s top priorities by establishing a second U.S. manufacturing site and strengthening our global market presence. We believe that our new Florida facility is ideally suited to meet the corporate objectives of Harris Semiconductor and has positioned Align-Rite International to expand its market share by increasing our product and service offerings to our valued customers throughout the United States."

Harris Semiconductor, which will become Intersil Corporation following divestiture from Harris Corporation in August, manufactures integrated circuits and discrete devices with R&D efforts focused on innovative new products for high-growth segments of the communications, power and space/defense markets. Harris Semiconductor is being divested by Harris Corporation, as announced June 3, 1999. When the divestiture is complete, the company will operate as a subsidiary of Sterling Holding Company LLC, a Citicorp Venture Capital, Ltd. investment portfolio company. The company's worldwide web site can be accessed at www.semi.harris.com.

Align-Rite, Inc. (Florida), formerly the Harris Semiconductor Imaging Technology Group and acquired by Align-Rite International on July 2, 1999, generated revenues of $11 million in calendar 1998 and supplies photomask products and services to Harris Semiconductor and several other prominent manufacturers in the United States. Align-Rite, Inc. (Florida) currently employs 56, operates from a 30,000 square foot manufacturing facility, and utilizes photomask manufacturing capabilities which address .35 micron semiconductor design rule requirements. It is also the only commercial photomask manufacturing facility in the United States currently certified to manufacture classified, high-end, photomask products for the U.S. Department of Defense.

Align-Rite International manufactures and markets quality photomasks and has grown to become a prominent manufacturer of photomasks in the United States and Europe. The company, headquartered in Los Angeles, California, currently serves over 250 customers in 21 countries from four manufacturing facilities and six customer service centers strategically located throughout the United States and Europe. The Company's Worldwide Web site can be accessed at www.alignrite.com.

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