DuPont Photomasks (DPMI) - 500 Beiträge pro Seite

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Profileupont Photomask is one of the largest photomask manufacturers in the world. Photomasks are high-purity quartz or glass plates containing precision images of integrated circuits and are used as masters by semiconductor manufacturers to optically transfer these images onto semiconductor wafers. Photomasks are a necessary component in the production of semiconductors, and advanced photomask technologies are critical to enabling the manufacture of increasingly complex semiconductor devices. The Company manufactures a broad range of photomasks based on customer-supplied design data, including photomasks that meet the tightest design specifications required by semiconductor manufacturers today.
http://www.photomask.com

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DuPont Photomasks and Infineon to Jointly Develop Advanced Photomask Technology
ROUND ROCK, Texas & MUNICH--(BUSINESS WIRE)--April 18, 2001--DuPont Photomasks, Inc. (NasdaqPMI - news) and Infineon Technologies (FSE:IFX) (NYSE:IFX - news) today announced that the companies have agreed to jointly develop advanced photomask technology to support the production of leading edge memory and logic semiconductor devices.
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DuPont Photomasks and Infineon plan to work together on joint technology development projects that will include sharing technology know-how and development roadmaps, in addition to the exchange of technical personnel. This will include the development of advanced processes and the improvement of existing ones, for both leading edge binary and phase shift masks.

Additionally, as part of the agreement, Infineon and DuPont Photomasks have signed a supply agreement whereby DuPont Photomasks will supply Infineon photomasks it outsources. Infineon`s internal operation increasingly focuses on advanced photomask development and production. Infineon has one of the most advanced and automated photomask manufacturing facilities in the world, along with an experienced team of scientists and engineers focused on photomask technology development.

``It is quite an honor to be chosen as a technology development partner by Infineon, a company that is clearly recognized as a leader in the semiconductor industry,`` said Peter Kirlin, chairman and chief executive officer of DuPont Photomasks. ``Infineon`s selection of DuPont Photomasks is further evidence of the value our advanced mask technology brings to our customers, and our track record for mask development. We look forward to growing our relationship with Infineon in the future.``

According to Dataquest, Infineon was among the ten largest worldwide semiconductor manufacturers in 2000. The company is a world leader in the technologically demanding and highly competitive DRAM market. As a consequence, Infineon requires the most technically challenging photomasks for the DRAM segment.

Advanced photomask technologies, such as phase shift masks and optical proximity correction, have become essential to semiconductor producers` ability to manufacture chips at 0.18-micron and below design rules using existing deep-UV photolithography systems with 0.248 micron wavelength illumination sources. Known as subwavelength lithography, the minimum feature sizes on chips are approaching one-half the wavelength of light being used to pattern them. Semiconductor producers are using advanced mask technology from DuPont Photomasks in order to overcome these challenges.

``DuPont Photomasks is one of the global leaders in the development and deployment of advanced photomask technology,`` said Dr. Johann Harter, senior vice president Frontends of Infineon. ``By linking with DuPont Photomasks, we plan to further accelerate our technology development efforts, resulting in faster time to market and higher quality products for our customers. We look forward to a mutually beneficial relationship.``

About DuPont Photomasks, Inc.

DuPont Photomasks leads the photomask industry with one of the most technically advanced manufacturing networks. The company supplies photomasks to the global semiconductor industry from 13 strategically located facilities in North America, Europe and Asia, and derives 33 percent of its current revenues from leading-edge photomasks with 0.18-micron or smaller design rules. DuPont Photomasks also produces and supplies photoblanks (photomask substrates) and pellicles (protective covers for photomasks). Headquartered in Round Rock, Texas, DuPont Photomasks posted worldwide sales of approximately $328 million in fiscal 2000. The company maintains a Web site at http://www.photomask.com.

About Infineon

Infineon Technologies AG, Munich, Germany, offers semiconductor and system solutions for applications in the wired and wireless communications markets, for security systems and smartcards, for the automotive and industrial sectors, as well as memory products. With a global presence, Infineon operates in the United States from San Jose, Calif., in the Asia-Pacific region from Singapore and in Japan from Tokyo. In the fiscal year 2000 (ending September), the company achieved sales of Euro 7.28 billion with about 29,000 employees worldwide. Infineon is listed on the DAX index of the Frankfurt Stock Exchange and on the New York Stock Exchange (ticker symbol:IFX). Further information is available at www.infineon.com.

Forward-Looking Statements: Certain statements contained in this document that are not historical facts, are ``forward-looking statements,`` as that term is defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that involve a number of risks and uncertainties. Such forward-looking statements may concern growth and future operating results, forecasts, projections, pricing pressures, potential acquisitions and joint ventures, new manufacturing facilities, capital expenditures, the global economic climate, the continued successful integration of the company`s new executives into the business, new products and product enhancements, the future importance of photomask technology, the demand for products, competitive factors, research and development activities and expenditures, strategic relationships with third parties, liquidity, macroeconomic influences and financing and the company`s strategy. Such forward-looking statements are generally accompanied by words such as ``intend,`` ``may,`` ``plan,`` ``expect,`` ``believe,`` ``should,`` ``would,`` ``could,`` ``anticipate`` or other words that convey uncertainty of future events or outcomes. Such forward-looking statements are based upon management`s current plans, expectations, estimates and assumptions and are subject to a number of risks and uncertainties that could significantly affect current plans, anticipated actions, the timing of such actions and the company`s business, financial position and results of operations. As a consequence, actual results may differ materially from expectations, estimates or assumptions expressed in or implied by any forward-looking statements made by or on behalf of the company. Factors which could cause or contribute to such differences include, but are not limited to, those factors set forth below which are fully discussed under the caption ``Risk Factors`` in the company`s Annual Report on Form 10-K filed with the Securities and Exchange Commission dated Sept. 15, 2000, the 10-Q dated Jan. 29, 2001, and the S-3 most recently amended on Sept. 11, 2000, as well as cautionary statements and other factors set forth as Risk Factors: capital intensive industry, significant fixed costs, rapid technological change, relationship with and dependence on semiconductor industry, fluctuations in quarterly and annual earnings, competition, significant international operations, Asian market volatility, manufacturing risks, concentration of customers, concentration of and dependence on suppliers, dependence on management and technical personnel, relationship with E.I. duPont de Nemours & Company, volatility of market price, potential acquisitions, technology challenges in the manufacture of advanced photomasks, intellectual property, changes in governmental laws and regulations, potential effect of shares eligible for future sales and registration rights. Results for the interim period are not necessarily indicative of the results for the year. The forward-looking statements are made as of the release date hereof and the company disclaims any intention or obligation to update or revise any forward-looking statements or to update the reasons why the actual results could differ materially from those projected in the forward-looking statements, whether as a result of new information, future events or otherwise.

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DuPont Photomasks posts higher third-quarter earnings
ROUND ROCK, Texas, April 18 (Reuters) - DuPont Photomasks Inc. (NasdaqNMPMI - news) on Wednesday reported higher third-quarter earnings, but warned that it would take a fourth-quarter charge that includes costs of cutting less than 2 percent of its work force.

DuPont Photomasks, the maker of devices used to make semiconductors, said net income for the quarter ended March 31, excluding special items, was $10.7 million, or 57 cents per diluted share compared with underlying earnings of $6.4 million, or 40 cents per share, in the year-earlier quarter.

Revenues for the quarter totaled $108.2 million, 28 percent more than the $84.3 million underlying revenues of a year earlier.

Looking ahead to the fourth quarter, the company expects sequential revenues to be flat. The company expects to record a special pre-tax charge between $8.0 million and $10.0 million, or 29 cents to 37 cents per share, in the fourth quarter related to the decommissioning of three production lines and the write-down of other property.

Included in the special charge will be severance costs associated with a reduction of less than 2 percent of the company`s global work force.

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AMD Successfully Utilizes Canary ESD Service from DuPont Photomasks and Ion to Protect Photomasks in Fab 25
ROUND ROCK, Texas and BERKELEY, Calif.--(BUSINESS WIRE)--April 24, 2001--

New Service Facilitates Improved Wafer Yields by Preventing

ESD Damage to Photomasks

DuPont Photomasks, Inc. (NasdaqPMI - news) and Ion Systems today announced that Advanced Micro Devices (NYSE:AMD - news) successfully utilized the new Canary(TM) ESD Service developed by the two companies to qualify and mitigate electrostatic discharge (ESD) events on photomasks at its Fab 25 facility in Austin.

Using patent-pending photomask technology and processes created by DuPont Photomasks and Ion, the advanced ESD audit service is aimed at improving wafer yields by identifying and eliminating the sources of ESD in the photomask path. The Canary ESD Service became available in September 2000.

Photomasks are critical components in the semiconductor manufacturing process, and are used to pattern integrated circuits (ICs) on silicon wafers. Electrostatic discharge can cause degradation to the circuit patterns on photomasks, leading to device failure.

Product and yield loss resulting from ESD damage to photomasks costs the semiconductor industry millions of dollars annually. As semiconductor design rules continue to shrink, photomasks are becoming increasingly vulnerable to the harmful effects of ESD events. With smaller design geometry, damage can occur even without physical contact and at low levels of electrostatic exposure, causing greater wafer yield loss, process downtime and photomask replacement costs.

In October 2000, AMD signed on for the new service at its Fab 25 facility with the goal of reducing photomask loss due to ESD events to zero.

``By utilizing the Canary ESD Service, we are protecting our photomasks from the potentially devastating effects of ESD events. This should enable us to protect wafer yields and improve productivity, by reducing process downtime and replacement and repair costs associated with ESD-damaged photomasks,`` said Dan Sutton, senior member technical staff, AMD.

AMD is implementing several recommendations from the Canary ESD Service audit team as ways to reduce the likelihood of ESD events. These include modifying photomask-handling procedures and evaluating new materials that can help manage and dissipate static charge, the root cause of electrostatic energy. Additionally, the chipmaker is using the Canary ESD Service to identify ESD risk factors in new equipment.

``We are certainly receiving the benefits of the collaborative efforts of two industry leaders. DuPont Photomasks and Ion have developed a very thorough and scientific approach to stemming the effects of ESD, and we hope to reduce ESD events on photomasks to zero,`` commented Sutton. ``Safeguarding our photomasks at Fab 25 has given us such peace of mind that we`re planning to utilize the Canary ESD Service at our other fabs.``

``A growing number of our customers believe that a factor in yield loss on wafers is due to the damaging effects that ESD events have on photomask patterns, especially as advanced photomask technologies are increasingly used,`` said Ken Rygler, executive vice president, Worldwide Marketing and Strategic Planning, DuPont Photomasks. ``The combined expertise of DuPont Photomasks and Ion in photolithography and electrostatic energy management, respectively, makes for a powerful solution to ESD problems. We are pleased that AMD is discovering firsthand the potential that this service has in improving wafer yields.``

``Electrostatic discharge is a costly industry issue that affects every member of the photolithography value chain. Our development of the Canary ESD Service with DuPont Photomasks and AMD`s subsequent utilization are reflective of the kind of industry cooperation required to meet the growing complexity of the subwavelength era,`` said Scott Gehlke, president and chief executive officer, Ion.

Representatives of DuPont Photomasks and Ion will be available during SEMICON Europa, April 24-26, to discuss the Canary ESD Service.

About Canary ESD Service

The Canary ESD Service combines proprietary photomask technology with exclusive ESD audit capabilities to determine the cause of ESD damage to photomasks and present solutions for controlling static energy. Canary technicians can analyze the entire photolithography process or any part of it, including photomask receiving, transport pods, stocker, exposure tools and inspection stations.

About DuPont Photomasks, Inc.

DuPont Photomasks leads the photomask industry with one of the most technically advanced manufacturing networks. The company supplies photomasks to the global semiconductor industry from 13 strategically located facilities in North America, Europe and Asia, and derives 33 percent of its current revenues from leading-edge photomasks with 0.18-micron or smaller design rules. DuPont Photomasks also produces and supplies photoblanks (photomask substrates) and pellicles (protective covers for photomasks). Headquartered in Round Rock, Texas, DuPont Photomasks posted worldwide sales of approximately $328 million in fiscal 2000. The company maintains a Web site at http://www.photomask.com.

About Ion Systems

Ion, an ISO 9001 certified company, provides electrostatic energy management solutions to help high-tech manufacturers develop and manage their static budgets for maximum yield, throughput and profitability. The company develops state-of-the-art technology, providing a wide range of products and services for a variety of applications -- from cleanrooms to process equipment to electronics assembly areas. Ion has an extensive global support network, and is headquartered at 1005 Parker Street, Berkeley, Calif. 94710. Additional information, news and events about the company can be accessed on the Internet at http://www.ion.com.

Note: Certain statements contained in this document that are not historical facts, are ``forward-looking statements,`` as that term is defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that involve a number of risks and uncertainties. Such statements involve risks and uncertainties which may cause future activities and results of operations to differ from those suggested, including risks associated with research and development programs, technology challenges in the manufacture of advanced photomasks, fluctuations in demand, installation and start-up of new equipment, accelerating technology requirements, and the need to manage growth. For additional information, please refer to DuPont Photomasks` filings with the Securities and Exchange Commission, specifically the company`s most recent Forms 10-K dated September 19, 2000, the 10-Q dated January 29, 2001, and the S-3 most recently amended on September 11, 2000, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. Results for interim periods are not necessarily indicative of results for the year. The forward-looking statements are made as of the release date hereof and the company disclaims any intention or obligation to update or revise any forward-looking statement or to update the reasons why the actual results could differ materially from those projected in the forward-looking statements, whether as a result of new information, future events or otherwise.

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DuPont Photomasks, Inc. to Close Hamilton, Scotland Manufacturing Facility
Consolidation Part of Previously Announced Restructuring Plan
ROUND ROCK, Texas--(BUSINESS WIRE)--May 4, 2001--DuPont Photomasks, Inc. (NasdaqPMI - news) today announced that, as part of a previously announced restructuring plan, it will close its Hamilton, Scotland manufacturing facility and relocate the equipment to other existing manufacturing facilities within its global network of 10 photomask production sites. The restructuring plan is designed to accelerate the development and deployment of advanced photomask technologies and improve capital productivity through more efficient utilization of manufacturing assets. The facility is expected to close by May 31, 2001. Transition plans are underway to transfer the photomasks produced in Hamilton to other manufacturing facilities, which should have no effect on customer deliveries.

Costs associated with the consolidation are part of the previously announced plan to record a special pre-tax charge of between $8.0 million and $10.0 million ($0.29 to $0.37 per diluted share) in the fourth quarter of fiscal 2001 related to the restructuring. Included in the special charge will be severance costs, including relocation and job-search assistance, for up to 36 employees affected by the consolidation. These actions are expected to result in approximately $2.5 million annualized operating expense reductions beginning in the first quarter of fiscal 2002.

``One element of our restructuring plan includes redefining each manufacturing facility`s mission in a way that improves productivity and return on invested capital across all product types and regions,`` said Peter Kirlin, chairman and chief executive officer, DuPont Photomasks. ``Our Hamilton facility was designed to service what was projected to be a rapidly growing semiconductor market in the United Kingdom. Since opening the facility in 1997, several of our customers` plans for new semiconductor fabs have been pushed out, delayed or cancelled,`` Kirlin continued. ``Today, the total available market for photomasks in the UK is less than 10% of the total European region. As such, we have concluded that we can more cost effectively serve our customers in the European market from our three large facilities in France and Germany, thereby improving productivity and profitability.``
"A reduction in work force is one of the most difficult decisions

a management team must undertake,`` Kirlin further commented. ``This decision in no way reflects upon the commitment and dedication of our employees in Scotland. Rather, the decision to close Hamilton is based on our recently revised global manufacturing strategy, combined with the smaller size of the photomask market in the UK.``

``Photomask technology is continuing the transition to a critical, value-adding component of the semiconductor manufacturing process. Our customers are relying on DuPont Photomasks to develop and deploy advanced technology across the globe in the most cost-effective way possible. We believe that our restructuring plan will enable us to do that in a more timely manner, and provide improved service and support to our entire customer base,`` Kirlin concluded.

About DuPont Photomasks, Inc.

DuPont Photomasks leads the photomask industry with one of the most technically advanced manufacturing networks. The company supplies photomasks to the global semiconductor industry from 12 strategically located facilities in North America, Europe and Asia, and derives 33 percent of its current revenues from leading-edge photomasks with 0.18-micron or smaller design rules. DuPont Photomasks also produces and supplies photoblanks (photomask substrates) and pellicles (protective covers for photomasks). Headquartered in Round Rock, Texas, DuPont Photomasks posted worldwide sales of approximately $328 million in fiscal 2000. The company maintains a Web site at http://www.photomask.com.

FORWARD LOOKING STATEMENTS: Certain statements contained in this document that are not historical facts, are ``forward-looking statements,`` as that term is defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that involve a number of risks and uncertainties. Such forward-looking statements may concern growth and future operating results, forecasts, projections, pricing pressures, potential acquisitions and joint ventures, new manufacturing facilities, capital expenditures, the global economic climate, the continued successful integration of the company`s new executives into the business, new products and product enhancements, the future importance of photomask technology, the demand for products, competitive factors, research and development activities and expenditures, strategic relationships with third parties, liquidity, and financing and the company`s strategy. Such forward-looking statements are generally accompanied by words such as ``intend,`` ``may,`` ``plan,`` ``expect,`` ``believe,`` ``should,`` ``would,`` ``could,`` ``anticipate`` or other words that convey uncertainty of future events or outcomes. Such forward-looking statements are based upon management`s current plans, expectations, estimates and assumptions and are subject to a number of risks and uncertainties that could significantly affect current plans, anticipated actions, the timing of such actions and the company`s business, financial position and results of operations. As a consequence, actual results may differ materially from expectations, estimates or assumptions expressed in or implied by any forward-looking statements made by or on behalf of the company. Factors which could cause or contribute to such differences include, but are not limited to, those factors set forth below which are fully discussed under the caption ``Risk Factors`` in the company`s Annual Report on Form 10-K filed with the Securities and Exchange Commission dated September 15, 2000, the 10-Q dated January 29, 2001, and the S-3 most recently amended on September 11, 2000, as well as cautionary statements and other factors set forth as Risk Factors: capital intensive industry, significant fixed costs, rapid technological change, relationship with and dependence on semiconductor industry, fluctuations in quarterly and annual earnings, competition, significant international operations, Asian market volatility, manufacturing risks, concentration of customers, concentration of and dependence on suppliers, dependence on management and technical personnel, relationship with E.I. DuPont de Nemours & Company, volatility of market price, potential acquisitions, technology challenges in the manufacture of advanced photomasks, intellectual property, changes in governmental laws and regulations, potential effect of shares eligible for future sales and registration rights. Results for the interim period are not necessarily indicative of the results for the year. The forward-looking statements are made as of the release date hereof and the company disclaims any intention or obligation to update or revise any forward-looking statements or to update the reasons why the actual results could differ materially from those projected in the forward-looking statements, whether as a result of new information, future events or otherwise.


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Contact:

DuPont Photomasks, Inc., Round Rock
Tom Blake, 512/310-6562
[e-mail]

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DuPont Photomasks, Inc. Increases 0.13-Micron and Below Production Capability
Customer Qualifications of JEOL Electron-Beam Pattern Generator Underway
ROUND ROCK, Texas--(BUSINESS WIRE)--May 7, 2001--DuPont Photomasks, Inc. (NasdaqPMI - news) today announced that it has increased its Round Rock facility`s 0.13-micron and below production capability by adding a new production line anchored by a JEOL JBX-9000MV pattern generator. Customer qualifications are currently underway.

The additional line will enhance DuPont Photomasks` ability to deliver advanced photomasks, as its customers accelerate their shift to 0.13-micron design rules. DuPont Photomasks is applying its extensive experience with e-beam pattern generators, including the JEOL system, to ramp the new line to volume production over the next several months. DuPont Photomasks will leverage advanced process technology, already developed at the DPI Reticle Technology Center from a JEOL JBX-9000MV line, which was installed in December 2000.

``Our customers are continuing to accelerate their technology roadmaps. This requires an increasing number of sophisticated photomask layers for devices with 0.13-micron design rules and below,`` said Preston Adcox, president and chief operating officer of DuPont Photomasks, Inc. ``E-beam pattern generators are essential to producing certain critical photomask layers and we are qualifying this new line to meet customers` specifications as quickly as possible.``

The JEOL JBX-9000MV is a vector-scan pattern generation system featuring high accuracy and throughput. It is based on an electron optical system, and has a variable-shaped beam and 50-kV accelerating voltage. Combined with DuPont Photomasks` unique process technology, the system is capable of producing photomasks with precise critical dimension control and pattern fidelity.

A photomask pattern generator is an essential piece of equipment that ``writes`` semiconductor circuit design patterns onto photomasks. Chipmakers then use photomasks to transfer circuit images onto silicon wafers. To produce smaller and more powerful chips, the feature sizes of these circuit design patterns are becoming smaller than the wavelength of light used to pattern them. To meet this need photomask manufacturers are producing advanced photomasks with various reticle enhancement techniques such as optical proximity correction (OPC) and phase shift masks (PSM).

About DuPont Photomasks, Inc.

DuPont Photomasks leads the photomask industry with one of the most technically advanced manufacturing networks. The company supplies photomasks to the global semiconductor industry from 12 strategically located facilities in North America, Europe and Asia, and derives 33 percent of its current revenues from leading-edge photomasks with 0.18-micron or smaller design rules. DuPont Photomasks also produces and supplies photoblanks (photomask substrates) and pellicles (protective covers for photomasks). Headquartered in Round Rock, DuPont Photomasks posted worldwide sales of approximately $328 million in fiscal 2000. The company maintains a Web site at http://www.photomask.com.

Note: Certain statements contained in this document that are not historical facts, are ``forward-looking statements,`` as that term is defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that involve a number of risks and uncertainties. Such statements involve risks and uncertainties which may cause future activities and results of operations to differ from those suggested, including risks associated with research and development programs, technology challenges in the manufacture of advanced photomasks, fluctuations in demand, installation and start-up of new equipment, accelerating technology requirements, and the need to manage growth. For additional information, please refer to DuPont Photomasks` filings with the Securities and Exchange Commission, specifically the company`s most recent Forms 10-K dated Sept. 15, 2000, the 10-Q dated Jan. 29, 2001, and the S-3 most recently amended on Sept. 11, 2000, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. Results for interim periods are not necessarily indicative of results for the year. The forward-looking statements are made as of the release date hereof and the company disclaims any intention or obligation to update or revise any forward-looking statement or to update the reasons why the actual results could differ materially from those projected in the forward-looking statements, whether as a result of new information, future events or otherwise.


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Contact:

DuPont Photomasks, Inc., Round Rock
Tom Blake, 512/310-6562
[e-mail]
or
The Loomis Group
Bruce Bedortha, 415/882-9494
[e-mail]

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DuPont Photomasks Comments on Fourth Quarter Fiscal 2001 Outlook
Company Expands Cost Reduction Program
ROUND ROCK, Texas--(BUSINESS WIRE)--June 11, 2001-- DuPont Photomasks, Inc. (Nasdaq: DPMI - news) today announced that revenue for the fourth quarter of fiscal 2001 will be lower than previously expected as a result of the continuing slowdown in the semiconductor industry.

The company said it now anticipates revenue in the current quarter to be in the $91.0 to $98.0 million range, or a decrease of 3 percent to an increase of 5 percent versus last year`s fourth quarter revenue of $93.4 million. On a sequential basis, revenue is expected to decrease approximately 9 to 16 percent over last quarter`s $108.2 million. The low end of the prior outlook anticipated a low single digit percentage decline in sequential revenues.

Fourth quarter earnings per share before special items is expected to be in the breakeven to $0.19 range. Last year`s fourth quarter earnings per share was $0.49.

The company also announced additional measures to increase productivity and reduce cost in addition to those announced on April 18, 2001. These include the decommissioning of several production lines and a reduction of approximately 6 percent of its global workforce of 2,000. The implementation of these actions will result in a special pre-tax charge of between approximately $26.0 and $30.0 million ($0.94 and $1.08 per diluted share) during the fourth quarter. Approximately 85 percent of the special charge will include non-cash asset write-downs. Cost savings of approximately $12.0 million per year are expected to be realized and will phase in during the first half of fiscal 2002. All estimates include the previously announced closing of a production facility in Scotland and the decommissioning of three trailing-edge production lines.

``The semiconductor industry is continuing to experience a difficult period as it suffers through one of the deepest downturns on record,`` said Peter Kirlin, chairman and chief executive officer of DuPont Photomasks. ``Historically, customers used downturns to introduce new products, sustaining mask demand. Currently, we believe new device introductions may be negatively impacted by the significant amount of inventory in the supply chain. As this inventory is depleted, new device introduction will accelerate. Additionally, our customers continue to implement aggressive cost cutting programs, which have caused a decrease in mask orders during the quarter.``

Kirlin continued, ``We continue to seek ways to strengthen our competitive position so that we emerge an even stronger company once demand picks up. Last quarter, we reorganized our manufacturing and technical organizations to accelerate the development and deployment of advanced mask technology, as well as to improve our capital productivity through more efficient utilization of our manufacturing assets at both the leading and trailing edge. Operating in this new structure, we identified additional manufacturing efficiencies. Furthermore, demand at the trailing edge has continued to erode. The combination of these two effects has driven our capacity utilization rates to below acceptable levels. As a result, we plan to decommission additional trailing-edge capacity. The improvement in manufacturing efficiencies, coupled with the decommissioning of trailing-edge capacity, will result in a reduction of our global workforce by approximately six percent.``

``Any decisions resulting in a reduction in force are always difficult. In the end, these are necessary steps towards building a sustainable business model that allows us to continue investing at the leading edge which is the growing part of our market, while at the same time generating sufficient returns for our shareholders,`` Kirlin concluded.

Additional Information: The company will host a conference call today at 9:00 a.m. eastern time. The conference call will be broadcast live, and a replay will be available on the Internet. Both can be accessed by the public via DuPont Photomasks` Web site at http://www.photomask.com. Additional information regarding the conference call can also be obtained on the company`s Web site.

About DuPont Photomasks, Inc.

DuPont Photomasks leads the photomask industry with one of the most technically advanced manufacturing networks. The company supplies photomasks to the global semiconductor industry from 12 strategically located facilities in North America, Europe and Asia, and derives 33 percent of its current revenues from leading-edge photomasks with 0.18-micron or smaller design rules. DuPont Photomasks also produces and supplies photoblanks (photomask substrates) and pellicles (protective covers for photomasks). Headquartered in Round Rock, Texas, DuPont Photomasks posted worldwide sales of approximately $328 million in fiscal 2000. The company maintains a Web site at http://www.photomask.com.

Note: Certain statements contained in this document that are not historical facts are ``forward-looking statements,`` as that term is defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that involve a number of risks and uncertainties. Such statements involve risks and uncertainties which may cause future activities and results of operations to differ from those suggested, including risks associated with research and development programs, technology challenges in the manufacture of advanced photomasks, fluctuations in demand, installation and start-up of new equipment, accelerating technology requirements, and the need to manage growth. For additional information, please refer to DuPont Photomasks` filings with the Securities and Exchange Commission, specifically the company`s most recent Forms 10-K dated September 19, 2000, the 10-Q dated May 10, 2001, and the S-3 most recently amended on September 11, 2000, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. Results for interim periods are not necessarily indicative of results for the year. The forward-looking statements are made as of the release date hereof and the company disclaims any intention or obligation to update or revise any forward-looking statement or to update the reasons why the actual results could differ materially from those projected in the forward-looking statements, whether as a result of new information, future events or otherwise.


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Contact:

DuPont Photomasks, Inc., Round Rock
Tom Blake, 512/310-6562

[panik]

DuPont Photomasks Announces Plans for Photomask Joint Venture With Micron Technology
Companies Sign Memorandum of Understanding to Build Advanced Photomask Development Facility
ROUND ROCK, Texas--(BUSINESS WIRE)--June 11, 2001-- DuPont Photomasks, Inc. (NasdaqPMI - news) today announced that the company has signed a non-binding memorandum of understanding outlining its intent to form a joint venture with Boise, ID based Micron Technology, Inc. (NYSE:MU - news), a world-leading producer of memory devices, focused on development and production of advanced photomasks supporting sub-0.13-micron design rules. The companies expect to sign definitive agreements within two months.

The terms of the agreement provide that a new photomask facility will be built in Boise, Idaho, near Micron`s new semiconductor research fabrication facility and its largest manufacturing campus. The new cleanroom is expected to open by the end of 2002 and will be outfitted with leading-edge photomask production equipment. Engineers from both companies will work together in the facility and focus on the development of advanced mask technologies, including phase shift masks and masks using optical proximity correction, supporting future generations of Micron`s memory devices.

``We are delighted that Micron again selected DuPont Photomasks as a mask technology development partner,`` said Peter Kirlin, chairman and chief executive officer of DuPont Photomasks. ``The value of mask technology has increased dramatically since the semiconductor industry entered the deep sub-wavelength era at 0.18-micron and below. Our customers are expressing concern about future capability and capacity for advanced mask technology, given rising complexity and costs. Our strategy as a world leader in advanced mask technologies is to structure agreements that best fit the needs of our customers. These can take the shape of customer prepayments for capacity, like those we`ve put in place over the last few quarters, to joint venture agreements, such as the one we anticipate signing with Micron.``

The proposed joint venture arrangement is structured similarly to the companies` five-year partnership in the DPI Reticle Technology Center (RTC) located in Round Rock, Texas. The RTC is a joint-venture mask development facility formed in 1996 by DuPont Photomasks, Micron, AMD and Motorola. As has happened in the RTC, Process Technology will be transferred to DuPont Photomasks` commercial production facilities to help support Micron and other customers` volume requirements. The RTC contract will be up for renewal at the end of 2002, approximately coinciding with the opening of DuPont Photomasks` and Micron`s new development facility in Boise.

Kirlin added, ``The RTC has been the most successful collaborative venture in the history of the mask industry. We are continuing discussions with our current partners, and other customers, to develop the best model for each and to determine the path of the RTC beyond its current term.``

``The success of the work we`ve done in the RTC over the last few years makes our choice for a mask development partner an easy one,`` said Mark Durcan, chief technology officer and vice president of research and development of Micron Technology. ``Advanced masks are, and will continue to be, a key aspect of our ability to maintain our global leadership position in memory devices. By linking with DuPont Photomasks, a technology leader in its field, we expect to more quickly and cost-effectively develop the masks required for future generations of devices. We look forward to continuing our successful relationship with DuPont Photomasks.``

At design rules of 0.18-micron and below, semiconductor producers are imaging features onto silicon wafers that are significantly smaller than the wavelength of light used in the lithography equipment. This deep sub-wavelength lithography requires advanced mask technologies and has become critical to the industry`s ability to stay on course with Moore`s Law, enabling the production of faster, smaller and cheaper computers, portable entertainment devices, digital cameras and personal digital assistants.

About DuPont Photomasks, Inc.

DuPont Photomasks leads the photomask industry with one of the most technically advanced manufacturing networks. The company supplies photomasks to the global semiconductor industry from 12 strategically located facilities in North America, Europe and Asia, and derives 33 percent of its current revenues from leading-edge photomasks with 0.18-micron or smaller design rules. DuPont Photomasks also produces and supplies photoblanks (photomask substrates) and pellicles (protective covers for photomasks). Headquartered in Round Rock, Texas, DuPont Photomasks posted worldwide sales of approximately $328 million in fiscal 2000. The company maintains a Web site at http://www.photomask.com.

Note: Certain statements contained in this document that are not historical facts are ``forward-looking statements,`` as that term is defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that involve a number of risks and uncertainties. Such statements involve risks and uncertainties which may cause future activities and results of operations to differ from those suggested, including risks associated with research and development programs, technology challenges in the manufacture of advanced photomasks, fluctuations in demand, installation and start-up of new equipment, accelerating technology requirements, and macroeconomic influences. For additional information, please refer to DuPont Photomasks` filings with the Securities and Exchange Commission, specifically the company`s most recent Forms 10-K dated September 19, 2000, the 10-Q dated May 10, 2001, and the S-3 most recently amended on September 11, 2000, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. Results for interim periods are not necessarily indicative of results for the year. The forward-looking statements are made as of the release date hereof and the company disclaims any intention or obligation to update or revise any forward-looking statement or to update the reasons why the actual results could differ materially from those projected in the forward-looking statements, whether as a result of new information, future events or otherwise.


--------------------------------------------------------------------------------
Contact:

DuPont Photomasks, Inc., Round Rock
Tom Blake, 512/310-6562
[e-mail]

[panik]

DuPont Photomasks and Xilinx Link in Advanced Mask Pact
ROUND ROCK, Texas & SAN JOSE, Calif.--(BUSINESS WIRE)--July 16, 2001--DuPont Photomasks, Inc. (NasdaqPMI - news) and Xilinx, Inc. (Nasdaq:XLNX - news) have formally agreed to work together to develop advanced photomask technologies in support of the Xilinx® transition to commercial production of 0.13-micron and below devices scheduled for later this year. Additionally, the two companies have signed a multiyear, multimillion-dollar supply agreement by which DuPont Photomasks will become a strategic supplier of masks to Xilinx, providing the leading supplier of programmable logic solutions with secure access to advanced photomask capability and capacity.

``Xilinx has long recognized the power and value of masks from DuPont Photomasks. As a result of using DuPont Photomasks` products, we have realized significant gains in yields and device performance,`` said Rich Sevcik, senior vice president of the FPGA Group at Xilinx. ``This agreement formalizes our relationship, allowing Xilinx to extend the benefits of DuPont Photomasks` advanced mask technologies to 0.13-micron design rules and below. By working with their top researchers, together we will develop new product and process flows that will reduce mask production time. This will help us to produce more powerful FPGA devices while keeping pace with increased demand.``

This collaboration extends the productive relationship the two companies have enjoyed during the last few years and comes at a critical time. As Xilinx moves deeper into the subwavelength era, the number of critical layers per mask set for its 0.13-micron designs has increased substantially when compared to 0.18-micron designs. Also, the number of layers with phase shifting and optical proximity correction has grown. As a part of the technology agreement, DuPont Photomasks and Xilinx have put in place a dedicated research and development team staffed with representatives of both companies. The team will focus on developing photomask product and process flows tailored for Xilinx`s devices in a way that provides the optimum balance between performance and cost, and reduces time to market for next-generation programmable logic devices.

``The subwavelength era is causing sweeping changes in the relationships between photomask manufacturers and customers. DuPont Photomasks is working with customers more closely than ever. By tailoring processes and offerings to better suit individual customers` requirements, we aim to help them shorten time to market, increase productivity and yields, while maximizing value and quality,`` said Peter Kirlin, chairman and chief executive officer, DuPont Photomasks. ``Xilinx is a prime example of this level of collaboration and the latest in a growing line of DuPont Photomasks` customers who have established cooperative agreements with us. This trend is further evidence of customers acknowledging DuPont Photomasks` global technology leadership position.``

To guarantee adequate access to essential mask capability and capacity, many leading semiconductor producers have established formal development and supply agreements with DuPont Photomasks, including AMD, Infineon, Micron, Motorola, UMC, Xilinx and others.

Chipmakers use photomasks to transfer circuit images onto silicon wafers. To produce smaller and more powerful chips, the feature sizes of these circuit design patterns are becoming smaller than the wavelength of light used to pattern them. At design rules of 0.18-micron and below, this deep sub-wavelength lithography requires advanced mask technologies and has become critical to the industry`s ability to stay on course with Moore`s Law, enabling the production of faster, smaller and cheaper computers, portable entertainment devices, digital cameras and personal digital assistants.

About Xilinx

Xilinx is the leading supplier of complete programmable logic solutions, including advanced integrated circuits, software design tools, predefined system functions delivered as intellectual property cores, and unparalleled field engineering support. Founded in 1984 and headquartered in San Jose, Calif., Xilinx invented the FPGA and fulfills more than half of the world demand for these devices today. Xilinx solutions enable customers to reduce significantly the time required to develop products for the computer, peripheral, telecommunications, networking, industrial control, instrumentation, aerospace, defense, and consumer markets. For more information, visit the Xilinx Web site at www.xilinx.com.

About DuPont Photomasks, Inc.

DuPont Photomasks leads the photomask industry with one of the most technically advanced manufacturing networks. The company supplies photomasks to the global semiconductor industry from 12 strategically located facilities in North America, Europe and Asia, and derives 33 percent of its current revenues from leading-edge photomasks with 0.18-micron or smaller design rules. DuPont Photomasks also produces and supplies photoblanks (photomask substrates) and pellicles (protective covers for photomasks). Headquartered in Round Rock, Texas, DuPont Photomasks posted worldwide sales of approximately $328 million in fiscal 2000. The company maintains a Web site at http://www.photomask.com.

Note: Certain statements contained in this document that are not historical facts are ``forward-looking statements,`` as that term is defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that involve a number of risks and uncertainties. Such statements involve risks and uncertainties which may cause future activities and results of operations to differ from those suggested, including risks associated with research and development programs, technology challenges in the manufacture of advanced photomasks, fluctuations in demand, installation and start-up of new equipment, accelerating technology requirements, and the need to manage growth. For additional information, please refer to DuPont Photomasks` filings with the Securities and Exchange Commission, specifically the company`s most recent Forms 10-K dated September 19, 2000, the 10-Q dated May 10, 2001, and the S-3 most recently amended on September 11, 2000, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. Results for interim periods are not necessarily indicative of results for the year. The forward-looking statements are made as of the release date hereof and the company disclaims any intention or obligation to update or revise any forward-looking statement or to update the reasons why the actual results could differ materially from those projected in the forward-looking statements, whether as a result of new information, future events or otherwise.


--------------------------------------------------------------------------------
Contact:

DuPont Photomasks, Inc.
Tom Blake, 512/310 6562
[e-mail]
or
Loomis Group
Bruce Bedortha, 415/882 9494
[e-mail]
or
Xilinx, Inc.
Tamara Snowden, 408/879-6146
[e-mail]

[panik]

RESEARCH ALERT - Bear Stearns cuts DuPont Photomasks
NEW YORK, July 20 (Reuters) - Bear Stearns lowered its investment rating of DuPont Photomasks Inc. (NasdaqNMPMI - news) on Friday to neutral from buy, saying it expects the company`s earnings report to fall below expectations.

``Given that DPMI is a provider of consumables to the industry, they generally don`t see the extreme highs or lows that capital equipment providers see and while they are indeed resistant to downturns, we feel no firm can escape from a very rapid falloff that the semiconductor and semiconductor industries have experienced,`` it said in a research note.

``We are concerned that DPMI`s earning report next week will likely be relatively poor and below expectations.``

It said the photomask industry is in probably the worst state it has ever been.

``Although, DPMI is a quality name that has held up rather well thus far and has a counter cyclical or `defensive` positioning in the semiconductor industry we think they will succumb to the extreme industry pressures and changing business model,`` Bear Stearns said.

Shares of DuPont Photomasks were down $1.28, or 3.1 percent, at $39.86 on the Nasdaq Friday morning.

[panik]

DuPont Photomasks posts loss, sees Q1 loss
ROUND ROCK, Texas, July 25 (Reuters) - DuPont Photomasks Inc. (NasdaqNMPMI - news), which makes devices used to produce semiconductors, on Wednesday posted a fourth-quarter loss and said it also expected to post a loss in the first quarter, due to the weak chip market.

Its fourth-quarter loss totaled $15.8 million, or a loss of 89 cents a share, compared with a profit of $8.1 million, or profit of 49 cents a share, a year ago.

Excluding special charges and gains, fourth-quarter net income was a profit of $100,000, or a profit of 1 cent a share. Wall Street analysts had expected the company to post a profit of 9 cents a share, according to research firm Thomson Financial/First Call. Revenues eased to $92.8 million, down from $93.4 million a year ago.

``The current semiconductor market environment is arguably the most difficult in history, and no company, including ours, is immune from the effects of this downturn,`` the company said in a statement.

As a result of the market weakness, it expects to post a first-quarter loss in the range of 35 cents to 70 cents a share, on revenues of $70 million to $80 million. Analysts expected the company to post a first-quarter profit of 15 cents a share, according to First Call.

[proxim]

DuPont Photomasks Fiscal 2002 Second Quarter Results to be Above Guidance
ROUND ROCK, Texas--(BUSINESS WIRE)--Jan. 9, 2002--DuPont Photomasks, Inc. (NasdaqPMI - news) today announced that revenue and earnings per share for fiscal 2002 second quarter will exceed the estimates previously provided by the company on October 18, 2001. Revenue and earnings per share are expected to be approximately $86 million and about breakeven, respectively. The company had estimated revenue of between $70 million and $80 million and a loss per share of between $0.10 and $0.40.

Peter Kirlin, chairman and chief executive officer of DuPont Photomasks, said, ``The quarter`s results were positively impacted by better than expected demand from a few of our strategic customers. The higher revenue, coupled with additional operating expense reductions resulting from the recent restructuring of our global manufacturing organization, led to better than expected earnings.``

``Semiconductor producers continue to seek out our advanced technology offerings as the industry moves deeper into subwavelength lithography,`` Kirlin said. ``We are confident in our competitive position and are encouraged by these results. However, uncertainty across the entire semiconductor industry continues to prevail. Looking ahead to our third quarter ending March 31, 2002, we currently expect revenue of between $77 million and $87 million, reflecting the general cautiousness across our entire customer base.``

DuPont Photomasks plans to release its complete financial results for fiscal 2002 second quarter on January 23, 2002.

About DuPont Photomasks

DuPont Photomasks is a leading global provider of microimaging solutions - including advanced photomasks, a key enabling technology used in the manufacture of semiconductor and other microelectronic devices. Headquartered in Round Rock, Texas, DuPont Photomasks operates a global network of manufacturing facilities serving semiconductor makers and other electronics producers around the world. The company also develops and produces the critical materials required for photomask-making, photoblanks (photomask substrates) and pellicles (protective covers for photomasks). DuPont Photomasks posted worldwide sales of approximately $408 million in fiscal 2001. Information about DuPont Photomasks can be found at http://www.photomask.com.

FORWARD LOOKING STATEMENTS: Certain statements contained in this document that are not historical facts, are ``forward-looking statements,`` as that term is defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that involve a number of risks and uncertainties. Such forward-looking statements may concern growth and future operating results, forecasts, projections, pricing pressures, potential acquisitions and joint ventures, new manufacturing facilities, capital expenditures, the global economic climate, management change, new products and product enhancements, the future importance of photomask technology, the demand for products, competitive factors, research and development activities and expenditures, strategic relationships with third parties, liquidity, financing and the company`s strategy. Such forward-looking statements are generally accompanied by words such as ``intend,`` ``may,`` ``plan,`` ``expect,`` ``believe,`` ``should,`` ``would,`` ``could,`` ``anticipate`` or other words that convey uncertainty of future events or outcomes. Such forward-looking statements are based upon management`s current plans, expectations, estimates and assumptions and are subject to a number of risks and uncertainties that could significantly affect current plans, anticipated actions, the timing of such actions and the company`s business, financial position and results of operations. As a consequence, actual results may differ materially from expectations, estimates or assumptions expressed in or implied by any forward-looking statements made by or on behalf of the company. Factors which could cause or contribute to such differences include, but are not limited to, those factors set forth below which are fully discussed under the caption ``Risk Factors`` in the company`s Annual Report on Form 10-K filed with the Securities and Exchange Commission dated September 14, 2001 and Form 10-Q dated October 29, 2001, as well as cautionary statements and other factors set forth as Risk Factors: capital intensive industry, significant fixed costs, rapid technological change, relationship with and dependence on semiconductor industry, fluctuations in quarterly and annual earnings, competition, significant international operations, Asian market volatility, manufacturing risks, fluctuation of income tax rates, concentration of customers, concentration of and dependence on suppliers, dependence on management and technical personnel, relationship with E.I. duPont de Nemours & Company, volatility of market price, potential acquisitions, technology challenges in the manufacture of advanced photomasks, intellectual property, changes in governmental laws and regulations, potential effect of shares eligible for future sales and registration rights. Results for the interim period are not necessarily indicative of the results for the year. The forward-looking statements are made as of the release date hereof and the company disclaims any intention or obligation to update or revise any forward-looking statements or to update the reasons why the actual results could differ materially from those projected in the forward-looking statements, whether as a result of new information, future events or otherwise.



--------------------------------------------------------------------------------
Contact:

DuPont Photomasks, Inc., Round Rock
Tom Blake, 512/310-6562
[e-mail]

[mp7]

DuPont Photomasks Acquires BindKey Technologies
ROUND ROCK, Texas--(BUSINESS WIRE)--April 2, 2002--DuPont Photomasks, Inc. (NASDAQPMI - news), a leading provider of microimaging solutions, today announced that it has acquired BindKey Technologies, Inc., a privately held electronic design automation (EDA) company headquartered in Santa Clara, California.

BindKey Technologies will operate as a wholly-owned subsidiary of DuPont Photomasks. At closing, DuPont Photomasks paid approximately $4 million in cash to BindKey Technologies` former shareholders. In addition, performance payments based on after-tax net income will be made to the employees of BindKey Technologies over the next four years. A final balloon payment is scheduled at the end of the fourth year that is a function of that year`s after-tax net income and a substantial discount to DuPont Photomasks` earnings multiple. The deal is expected to be accretive to DuPont Photomasks starting in fiscal 2004 and dilutive in fiscal 2006 as a result of the final balloon payment.

BindKey Technologies develops EDA software solutions designed to improve chipmakers` productivity by solving integrated circuit (IC) manufacturing issues during the design phase. Based on its proprietary Polygon Morph Synthesis Engine(TM), BindKey Technologies` RapidIC(TM) tool suite enables semiconductor companies to significantly reduce design and manufacturing costs, and to accelerate time-to-market.

Peter Kirlin, chairman and chief executive officer of DuPont Photomasks, said, ``The challenges of subwavelength lithography are causing the entire semiconductor industry to reexamine the flow from chip design to wafer manufacture. This paradigm shift is creating opportunities for DuPont Photomasks to step up and lead the industry through our focus on helping customers print images on wafers, with optimized performance at the lowest cost. By focusing on delivering to our customers more than just a photomask, we are able to create added value by streamlining the design to wafer flow. BindKey`s products and vision are perfectly aligned with our strategy of being the leading microimaging solutions provider.``

In subwavelength lithography, semiconductor producers print features on silicon wafers smaller than the wavelength of light used to image the wafers. To accomplish this seemingly impossible task, IC designers must employ resolution enhancement technologies (RET) -- such as optical proximity correction and phase shifting -- in chip design.

The rapidly growing use of RET is generating a new level of complexity across the chip-design, photomask-production and wafer-manufacturing steps, resulting in added costs and longer design cycles.

BindKey Technologies is focused on developing innovative tools that reduce the number of iterations that are required from design verification to tape-out, or the release of the design for photomask production. Traditionally, manufacturing-verification software has detected layout errors that require time-consuming and costly manual repair prior to the tape-out step.

BindKey Technologies` RapidIC tool suite is designed to automate this tedious task, reducing cycle times and providing more reliable data from which to fabricate a photomask. By improving IC layout productivity and reducing the number of iterations that are required before ordering a set of photomasks, semiconductor producers can realize lower costs, faster time-to-market and improved yields on wafer.

Motti Beck, chief executive officer of BindKey Technologies, said, ``We are excited to become an integral part of DuPont Photomasks` vision of the future. We are convinced that, together, we can design and develop innovative products that will add tremendous value to customers as the industry pushes deeper into subwavelength lithography.``

``DuPont Photomasks` global network of sales and service centers touches virtually every semiconductor producer in the world. Its global presence will accelerate BindKey Technologies` access to key customers,`` Beck added. ``Our focus will continue to be on the development of groundbreaking technologies, services and distribution of the RapidIC tool suite. Also, we will continue to forge complementary partnerships with other EDA companies as a way to integrate our tools into the current IC design flow.``

BindKey`s first product, RapiDesignClean(TM), is available today and in use by chip designers around the world. RapiDesignClean is a ``correct-by-construction`` design environment that fixes design-rule violations in real-time. The product eliminates design-rule violations by using a unique algorithm that prevents polygons from shifting less than the minimum distance allowed by the IC manufacturing process. In this way, the photomask design specialist constructs the mask-layout blocks free of manufacturing violations.

During the third quarter of 2002, BindKey Technologies is scheduled to release RapiDRCFix(TM). RapiDRCFix will enable automated correction of physical design violations. This will improve productivity, reduce costs and enhance quality.

Said Ron Rohrer, an EDA pioneer, ``The EDA community is beginning to recognize that the current approach of solving manufacturability issues after the design has been done may not work below the 100-nanometer process. BindKey has developed novel technology and tools to take into account manufacturing rules during the design process. I commend DuPont Photomasks for taking the initiative to forge tighter links between semiconductor manufacturing and IC design tools.``

Additional Information: The company will host a conference call today at 5:15 p.m. Eastern time. The conference call will be broadcast live and may be accessed at 1 800 997 8642. In addition, a replay will be available on the Internet via DuPont Photomasks` Web site, http://www.photomask.com.

About DuPont Photomasks

DuPont Photomasks is a leading global provider of microimaging solutions. The company develops and produces advanced photomasks, a key enabling technology used in the manufacture of semiconductor and other microelectronic devices, and pellicles, the protective covers for photomasks. Headquartered in Round Rock, Texas, DuPont Photomasks operates a global network of manufacturing facilities serving semiconductor makers and other electronics producers around the world. DuPont Photomasks posted worldwide sales of approximately $408 million in fiscal 2001. Information about the company can be found at http://www.photomask.com.

FORWARD-LOOKING STATEMENTS: Certain statements contained in this document that are not historical facts, are ``forward-looking statements,`` as that term is defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that involve a number of risks and uncertainties. Such forward-looking statements may concern growth and future operating results, forecasts, projections, pricing pressures, potential acquisitions and joint ventures, new manufacturing facilities, capital expenditures, the global economic climate, management change, new products and product enhancements, the future importance of photomask technology, the demand for products, competitive factors, research and development activities and expenditures, strategic relationships with third parties, liquidity, financing and the company`s strategy. Such forward-looking statements are generally accompanied by words such as ``intend,`` ``may,`` ``plan,`` ``expect,`` ``believe,`` ``should,`` ``would,`` ``could,`` ``anticipate`` or other words that convey uncertainty of future events or outcomes. Such forward-looking statements are based upon management`s current plans, expectations, estimates and assumptions and are subject to a number of risks and uncertainties that could significantly affect current plans, anticipated actions, the timing of such actions and the company`s business, financial position and results of operations. As a consequence, actual results may differ materially from expectations, estimates or assumptions expressed in or implied by any forward-looking statements made by or on behalf of the company. Factors which could cause or contribute to such differences include, but are not limited to, those factors set forth below which are fully discussed under the caption ``Risk Factors`` in the company`s Annual Report on Form 10-K filed with the Securities and Exchange Commission dated September 17, 2001 and Form 10-Q dated February 8, 2002, as well as cautionary statements and other factors set forth as Risk Factors: integration of new businesses, capital intensive industry, significant fixed costs, rapid technological change, relationship with and dependence on semiconductor industry, fluctuations in quarterly and annual earnings, competition, significant international operations, including risk factor of receipt of necessary governmental export licenses and approvals, Asian market volatility, worldwide economic conditions, manufacturing risks, fluctuation of income tax rates, concentration of customers, concentration of and dependence on suppliers, dependence on management and technical personnel, integrating new management, relationship with E.I. duPont de Nemours & Company, volatility of market price, potential acquisitions and divestitures, technology challenges in the manufacture of advanced photomasks, intellectual property, changes in governmental laws and regulations, potential effect of shares eligible for future sales and registration rights. Results for the interim period are not necessarily indicative of the results for the year. The forward-looking statements are made as of the release date hereof and the company disclaims any intention or obligation to update or revise any forward-looking statements or to update the reasons why the actual results could differ materially from those projected in the forward-looking statements, whether as a result of new information, future events or otherwise.



--------------------------------------------------------------------------------
Contact:

DuPont Photomasks, Inc.
Tom Blake, 512/310-6562
[e-mail]

[pomade]

DuPont Photomasks, Inc. Announces FY 2002 Third Quarter Results
ROUND ROCK, Texas--(BUSINESS WIRE)--April 24, 2002--DuPont Photomasks, Inc. (NasdaqPMI - news) today announced results for the third quarter ended March 31, 2002.

Revenues for the third quarter of fiscal 2002 totaled $83.4 million, 23 percent less than fiscal 2001`s third quarter revenues of $108.0 million. Revenues for the first nine months of fiscal 2002 totaled $247.4 million, as compared to $315.1 million for the first nine months of fiscal 2001.

Net income, including special items for the third quarter of fiscal 2002, was $4.9 million or $0.26 per share, compared with $9.0 million or $0.48 per share for the third quarter of fiscal 2001. Year-to-date, the company has recorded net income of $2.3 million or $0.13 per share, versus net income of $31.0 million or $1.66 per share for the first nine months of fiscal 2001.

On a pro forma basis, fiscal 2002`s third quarter net income, excluding special items, was $0.2 million or $0.01 per share, as compared to pro forma net income of $9.5 million or $0.50 per share in fiscal 2001`s third quarter, as adjusted for the impact of the change in the annualized effective tax rate recorded in the fourth quarter of fiscal 2001. Pro forma net income for the third quarter of fiscal 2002 was favorably impacted by a better-than-expected tax rate resulting from a shift in the mix of earnings from higher-tax to lower-tax regions. Applying a year-to-date tax rate at the end of fiscal 2002`s second quarter would have resulted in a pro forma loss of ($0.03) per share during fiscal 2002`s third quarter.

Pro forma results for fiscal 2002`s third quarter exclude the following special items: a one-time gain of $10.4 million from the sale of the company`s photoblanks business unit; a write-off of $0.3 million for in-process R&D associated with the acquisition of BindKey Technologies; a $5.1 million write-off of equipment and assets held for sale; and $2.0 million in severance charges.

Peter Kirlin, chairman and chief executive officer of DuPont Photomasks, said, ``During the quarter, we made further moves to better align our global manufacturing network in support of the current and future needs of our customers. By doing so, we have improved our competitive position, enabling us to more effectively serve both leading and trailing-edge segments of the market across the world.``

``Our goal remains to position the company as the premier provider of microimaging solutions to our customers,`` continued Kirlin. ``In the quarter we acquired BindKey Technologies, a developer of electronic design automation software solutions designed to improve chipmakers` productivity. BindKey`s unique suite of EDA tools will help DuPont Photomasks deliver greater value to our customers by streamlining the design-to-wafer flow.``

During the quarter, revenues from photomasks supporting 180-nanometer and below design rules grew approximately 25 percent sequentially to 45 percent of total revenues. The company currently expects fourth quarter fiscal 2002 revenues between $87 million and $92 million, resulting in a loss of between ($0.10) and ($0.02) per share. The expected earnings per share include the dilutive effect of the divestiture of the photoblanks business unit and the acquisition of BindKey Technologies.

Additional Information: The company will host a conference call today at 11:00 a.m. Eastern time. The conference call will be broadcast live, and a replay will be available on the Internet and may be accessed by the public via DuPont Photomasks` Web site at http://www.photomask.com.

About DuPont Photomasks

DuPont Photomasks is a leading global provider of microimaging solutions. The company develops and produces advanced photomasks, a key enabling technology used in the manufacture of semiconductor and other microelectronic devices, and pellicles, the protective covers for photomasks. Headquartered in Round Rock, Texas, DuPont Photomasks operates a global network of manufacturing facilities serving semiconductor makers and other electronics producers around the world. DuPont Photomasks posted worldwide sales of approximately $408 million in fiscal 2001. Information about the company can be found at http://www.photomask.com.

FORWARD-LOOKING AND CAUTIONARY STATEMENTS: Except for the historical information and discussions contained herein, statements contained in this release may constitute ``forward-looking statements`` within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors for example, the semiconductor industry cycles and technological challenges that could cause actual results to differ materially as discussed in the company`s filings with the Securities and Exchange Commission, including its most recent Forms 10-K and 10-Q as well as cautionary statements and other factors set forth as Risk Factors. Results for the interim period are not necessarily indicative of the results for the year. The forward-looking statements are made as of the release date hereof and the company disclaims any intention or obligation to update or revise any forward-looking statements or to update the reasons why the actual results could differ materially from those projected in the forward-looking statements, whether as a result of new information, future events or otherwise.


DuPont Photomasks, Inc.
Consolidated Income Statement
(unaudited; $ in thousands except per share amounts;
quarter and nine months ended March 31, 2002 and 2001)

Q302 Q301 YTD02 YTD01
---------- ---------- ---------- ----------

Revenue, net $ 83,357 $ 108,015 $ 247,443 $ 315,109
Cost of Goods Sold 65,457 71,116 200,143 204,987
Selling, General and
Administrative
Expense 10,428 11,579 29,995 36,940
Research and
Development Expense 7,746 8,340 21,074 23,921
Special Charges 7,393 11,883 7,393 11,883
---------- ---------- ---------- ----------

Operating Profit
(Loss) (7,667) 5,097 (11,162) 37,378
Gain on Sale of
Business 10,350 -- 10,350 --
Other Income
(Expense), net (177) 9,980 1,081 11,295
---------- ---------- ---------- ----------

Income Before Income
Taxes, Minority
Interest and
Cumulative Effect
of Change in
Accounting
Principle 2,506 15,077 269 48,673
Provision for
(Benefit From)
Income Taxes (3,408) 3,680 (7,021) 12,393
---------- ---------- ---------- ----------

Income Before
Minority Interest
and Cumulative
Effect of Change
in Accounting
Principle 5,914 11,397 7,290 36,280
Minority Interest in
Income of Joint
Ventures (1,009) (2,358) (5,001) (4,833)
Cumulative Effect of
Change in Accounting
Principle -- -- -- (481)
---------- ---------- ---------- ----------

Net Income $ 4,905 $ 9,039 $ 2,289 $ 30,966
========== ========== ========== ==========

Earnings Per Share:

Basic $ 0.27 $ 0.51 $ 0.13 $ 1.79
Diluted 0.26 0.48 0.13 1.66

Weighted Average
Shares Outstanding:

Basic 17,893,028 17,597,060 17,860,729 17,255,888
Diluted 19,203,065 19,126,693 18,103,031 18,813,288


Adjustments for Pro forma Net Income (Loss)
This pro forma information is not prepared in accordance
with generally accepted accounting principles.

Q302 Q301 YTD02 YTD01
---------- ---------- ---------- ----------

Reported Net Income $ 4,905 $ 9,039 $ 2,289 $ 30,966

Change of Estimate in
Tax Rate -- (1,137) -- (2,852)
Special Charges, net
of tax 4,900 8,437 4,900 8,437
Sale of Business, net
of tax (9,615) -- (9,615) --
(Gain) Loss on
Warrants, net of tax -- (6,798) 100 (6,798)
Cumulative Effect of
Change in Accounting
Principle -- -- -- 481
---------- ---------- ---------- ----------

Pro forma Net Income
(Loss) $ 190 $ 9,541 $ (2,326) $ 30,234
========== ========== ========== ==========

Pro forma Diluted
Earnings (Loss) Per
Share $ 0.01 $ 0.50 $ (0.13) $ 1.62


DuPont Photomasks, Inc.
Consolidated Balance Sheet
(unaudited; $ in thousands)

Mar. 2002 Jun. 2001
---------- ----------

Cash and Cash Equivalents $ 103,406 $ 138,590
Accounts Receivable, net 57,810 73,091
Inventories, net 9,857 19,105
Other Current Assets 63,282 34,172
---------- ----------

Total Current Assets 234,355 264,958
Property and Equipment, net 474,238 462,114
Other Assets, net 57,834 40,380
---------- ----------

Total Assets $ 766,427 $ 767,452
========== ==========

Accounts Payable $ 45,482 $ 58,310
Other Current Liabilities 78,602 67,419
---------- ----------

Total Current Liabilities 124,084 125,729
Other Liabilities 178,814 183,443
Stockholders` Equity 463,529 458,280
---------- ----------

Total Liabilities and Stockholders`
Equity $ 766,427 $ 767,452
========== ==========


DuPont Photomasks, Inc.
Statement of Cash Flows
(unaudited; $ in thousands; nine months ended March 31, 2002 and 2001)

YTD02 YTD01
---------- ----------
Cash Flows from Operating Activities:
Net Income $ 2,289 $ 30,966
Depreciation and Amortization 67,890 57,044
Special Charges and Gain on Sale of
Business (2,957) 11,883
Other (2,176) 7,286
Changes in Assets and Liabilities (19,478) (4,183)
---------- ----------

Net Cash Provided by Operating
Activities 45,568 102,996
Net Cash Used in Investing
Activities (88,238) (90,785)
Net Cash Provided by Financing
Activities 7,718 63,145
Effect of Exchange Rate Changes on
Cash (232) (1,188)
---------- ----------

Net Cash Flow $ (35,184) $ 74,168
========== ==========



--------------------------------------------------------------------------------
Contact:
DuPont Photomasks, Inc., Austin
Tom Blake, 512/310-6562
[e-mail]

[Chipdesign]

DuPont Photomasks Enters into Advanced Technology Development and Supply Agreements with Cypress
ROUND ROCK, Texas--(BUSINESS WIRE)--June 17, 2002--DuPont Photomasks, Inc. (NasdaqPMI - News) today announced that it has signed an agreement with Cypress Semiconductor Corporation (NYSE:CY - News) to jointly develop advanced photomask technologies supporting the production of high-performance integrated circuits (ICs). The companies have also entered into a separate multiyear supply agreement whereby DuPont Photomasks will provide a significant majority of Cypress` photomasks for commercial production. As part of this supply deal, Cypress has agreed to pay DuPont Photomasks an undisclosed sum upfront.

Cypress produces high-performance integrated circuits for network infrastructure and access equipment, and is a leader in pure optical and optoelectronic technologies. Cypress is also the industry`s leader in communications timing solutions, networking-optimized communications memories and personal connectivity solutions, such as USB and Bluetooth.

"Cypress` selection of DuPont Photomasks as its primary photomask supplier and development partner proves, yet again, the value that leading semiconductor producers place on advanced microimaging solutions," said Peter Kirlin, chairman and chief executive officer of DuPont Photomasks. "This arrangement is the latest in a growing line of formal strategic relationships that we have formed to deliver customer-specific solutions supporting deep submicron designs. DuPont Photomasks` unique approach to matching particular photomask technologies to device requirements is resonating with customers across the industry and gaining momentum in the marketplace."

The technology agreement calls for the companies to collaborate on the development and qualification of binary and phase-shift photomasks for 130-, 90- and 65-nanometer technology. The work includes development of phase shifting photomasks that meet the requirements of 193-nanometer lithography.

Dr. Shahin Sharifzadeh, senior director of research and development at Cypress, said, "Advanced microimaging solutions are crucial to on-time technology development. We needed more than just a mask maker, so we chose DuPont Photomasks. As a vital part of our development efforts, DuPont Photomasks will help us to tailor sophisticated, cost-effective microimaging solutions that will enable us to execute our technology roadmap in the years ahead."

Semiconductor manufacturers use photomasks to optically transfer circuit design patterns onto semiconductor wafers. The line widths of these circuit designs are often smaller than the wavelength of light used to image them onto the wafer. At design rules of 180 nanometers and below, subwavelength lithography requires advanced photomasks that employ resolution enhancement techniques, such as phase shifting and optical proximity correction (OPC). To ensure ready access to advanced photomask capability and capacity, many top semiconductor producers, such as Cypress and others, have established formal development and supply agreements with DuPont Photomasks.

About DuPont Photomasks

DuPont Photomasks is a leading global provider of microimaging solutions. The company develops and produces advanced photomasks, a key enabling technology used in the manufacture of semiconductor and other microelectronic devices, and pellicles, the protective covers for photomasks. Headquartered in Round Rock, Texas, DuPont Photomasks operates a global network of manufacturing facilities serving semiconductor makers and other electronics producers around the world. DuPont Photomasks posted worldwide sales of approximately $408 million in fiscal 2001. Information about the company can be found at http://www.photomask.com.

FORWARD-LOOKING AND CAUTIONARY STATEMENTS: Except for the historical information and discussions contained herein, statements contained in this release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors for example, the semiconductor industry cycles, technological challenges, technical difficulty of manufacturing high end photomasks, material supply, stability of forecasted product requirements, that could cause actual results to differ materially as discussed in the company`s filings with the Securities and Exchange Commission, including its most recent Forms 10-K and 10-Q as well as cautionary statements and other factors set forth as Risk Factors. Results for the interim period are not necessarily indicative of the results for the year. The forward-looking statements are made as of the release date hereof and the company disclaims any intention or obligation to update or revise any forward-looking statements or to update the reasons why the actual results could differ materially from those projected in the forward-looking statements, whether as a result of new information, future events or otherwise.



--------------------------------------------------------------------------------
Contact:

DuPont Photomasks, Inc.
Tom Blake, 512/310-6562
[e-mail]
or
Loomis Group, Inc.
Clare Casey, 415/882-9494
[e-mail]

[Chipdesign]

Friday July 19, 11:47 am Eastern Time
Reuters Company News
DuPont Photomasks sees tax gain but shares off

(Updates with stock prices, adds analyst comments, background, details)

NEW YORK, July 19 (Reuters) - DuPont Photomasks Inc. (NasdaqNMPMI - News) said on Friday a tax benefit would push revenues and profits above earlier estimates, but concerns about the photomask business pushed the stock to a low unseen since late 1998.
ADVERTISEMENT



The Round Rock, Texas-based maker of photomasks -- glass plates that serve as templates for microchip designs -- updated investors a day after rival Photronics Inc., (NasdaqNM:PLAB - News) which late Thursday warned its third-quarter results would miss Wall Street targets.

Shares of both companies were hammered by investors. DuPont Photomask stock fell $2.35, or 8.7 percent, to $24.83, while Photronics dropped $2.77, or 17 percent, to $13.18.

"Both of them are competitors and there`s a major price war is going on," said Banc of America Securities analyst Mark Fitzgerald.

DuPont Photomasks said it expects earnings of about 8 cents to 10 cents a share after a tax benefit of $1.5 million. It expects to break even before taxes on revenue of about $94.5 million.

DuPont Photomasks had previously said it expected a net loss of 2 cents to 10 cents, with revenue between $87 million and $92 million. It will report results July 25.

The company currently expects fiscal first-quarter revenue between $87 million and $94 million. Analysts had expected slightly better, said Prudential Securities analyst Shekhar Pramanick.

DuPont Photomasks estimated results for the first quarter, which ends in September, between a net loss of 20 cents and net income of 2 cents.

"It is very difficult to predict results for DuPont," said Pramanick, pointing to the company`s reliance on orders that are filled almost immediately after they are placed. "So they often give us these wide ranges."

For the fourth quarter, analysts have been expecting DuPont Photomasks to post a net loss of 2 cents to 5 cents, with an average loss of 3 cents a share, according to market tracker Thomson First Call. For the fiscal first quarter, First Call estimates range from 3 cents to 20 cents, with an average of 9 cents.

[Chipdesign]

DuPont Photomasks Introduces ACUITY Advanced Imaging Mask Set Strategy
ROUND ROCK, Texas--(BUSINESS WIRE)--July 22, 2002--DuPont Photomasks, Inc. (NasdaqPMI - News) unveiled its new ACUITY(TM) Advanced Imaging Mask Set strategy as part of its ongoing initiative to help customers address the increasing complexities of subwavelength lithography. ACUITY is a framework for combining DuPont Photomasks` new proprietary processes and technologies to best meet the specific needs of various segments of the semiconductor market. The ACUITY methodology targets semiconductor devices with design rules of 130 nanometers and below.

"The rising costs and cycle times associated with producing leading-edge photomasks in the deep subwavelength era is a growing industry concern," said Peter Kirlin, chairman and chief executive officer of DuPont Photomasks. "DuPont Photomasks has responded to this situation by introducing the ACUITY Advanced Imaging Mask Set strategy. This forward-thinking approach offers customers greater flexibility in cycle time, price and process latitude by considering the entire design-to-manufacture process, by focusing primarily on the wafer image and by meeting the requirements common to certain device types."

In developing the ACUITY methodology, DuPont Photomasks identified three distinct market segments: high performance, high volume devices, such as DRAMs and microprocessors; medium wafer runs of devices, such as system-on-chip (SoC) and field-programmable gate arrays (FPGA); and low-volume, high-performance devices, such as application specific integrated circuits (ASICs). As feature sizes continue to shrink, mask sets supporting devices in each of these segments can vary dramatically, depending on device design, end-use application and lithography process.

To accommodate this diversity, DuPont Photomasks designed a model ACUITY mask set for each product category that balances cycle time, price and performance. Chipmakers customize the model applicable to their device by first choosing a combination of DuPont Photomasks` DEFINITY(TM) Binary Masks and LUMINEX(TM) Phase Shift Masks for the critical layers. The lithography requirements of each mask layer determine the type of mask selected. Semiconductor producers then decide on the degree of fidelity for each of the critical layers of the mask set.

"We applaud DuPont Photomasks` bold approach to mitigating the escalating cost of mask sets," said Dr. Shahin Sharifzadeh, vice president of research and development at Cypress. "ACUITY takes into account two very important facts: the final image on the wafer is all that really matters and customers can have vastly different priorities depending on device type. As a result, we expect that ACUITY will offer unparalleled latitude and cost efficiency in meeting our unique set of lithography challenges at the sub-130-nanometer technology node."

DuPont Photomasks produces DEFINITY Binary Masks and LUMINEX Phase Shift Masks by using its new proprietary processes and technologies. Because the new processes are specific to the 130-nanometer and 90-nanometer technology nodes, they involve a unique combination of write tools and materials, such as leading-edge photoresists.

Semiconductor manufacturers use photomasks to optically transfer circuit design patterns onto semiconductor wafers. To produce smaller and more powerful semiconductor devices, the line widths of these circuit designs have often become smaller than the wavelength of light used to image them onto the wafer. Known as "subwavelength lithography," this typically involves using 248-nanometer lithography systems and advanced photomasks to image circuit designs based on design rules of 180 nanometers and below. At the sub-180-nanometer technology node, photomasks must employ resolution enhancement technologies, such as phase shifting and optical proximity correction (OPC), to produce high-fidelity images on wafers.

About DuPont Photomasks

DuPont Photomasks is a leading global provider of microimaging solutions. The company develops and produces advanced photomasks, a key enabling technology used in the manufacture of semiconductor and other microelectronic devices; pellicles, the protective covers for photomasks; and electronic design automation (EDA) software. Headquartered in Round Rock, Texas, DuPont Photomasks operates a global network of manufacturing facilities serving semiconductor makers and other electronics producers around the world. DuPont Photomasks posted worldwide sales of approximately $408 million in fiscal 2001. Information about the company can be found at http://www.photomask.com.

FORWARD-LOOKING STATEMENTS: Except for the historical information and discussions contained herein, statements contained in this release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors for example, the semiconductor industry cycles, technological challenges, technical difficulty of manufacturing high end photomasks, material supply, stability of forecasted product requirements, that could cause actual results to differ materially as discussed in the company`s filings with the Securities and Exchange Commission, including its most recent Forms 10-K and 10-Q as well as cautionary statements and other factors set forth as Risk Factors. Results for the interim period are not necessarily indicative of the results for the year. The forward-looking statements are made as of the release date hereof and the company disclaims any intention or obligation to update or revise any forward-looking statements or to update the reasons why the actual results could differ materially from those projected in the forward-looking statements, whether as a result of new information, future events or otherwise.



--------------------------------------------------------------------------------
Contact:

DuPont Photomasks, Inc.
Tom Blake, 512/310-6562
[e-mail]
or
Loomis Group
Clare Casey, 415/882-9494
[e-mail]

[panik]

Thursday July 25, 7:31 am Eastern Time
Reuters Company News
DuPont Photomasks digs small profit from tough market




ROUND ROCK, Texas, July 25 (Reuters) - DuPont Photomasks
Inc. (NasdaqNMPMI - News), a maker of glass plates used in microchip
production, on Thursday reported a small quarterly profit
before the help of a tax benefit, helped by sales to designers
of cutting-edge chips.
In the fiscal fourth quarter ended June 30, the company
said it earned $1.7 million, or 10 cents a share, including a
$1.5 million tax benefit. A year ago, the company lost $15.8
million, or 89 cents a share. Revenue rose 2 percent to $94.5
million.
Revenue from photomasks that support chips with design
features smaller than 180 nanometers grew to 46 percent of
total revenue. The chip equipment market has suffered under
economic weakness and depressed demand for computers, but
advanced chip production shows promise for bumping up sales.
DuPont Photomasks said it expects to report revenue in its
fiscal first quarter of between $87 million and $94 million,
with bottom line results between a loss of 20 cents a share and
a profit of 2 cents a share.

[Chipdesign]

Reuters Company News
RESEARCH ALERT-Lehman starts DuPont Photomasks, Photronics
Wednesday September 25, 12:00 pm ET


NEW YORK, Sept 25 (Reuters) - Lehman Brothers started coverage Wednesday of DuPont Photomasks Inc.(NasdaqNMPMI - News) at "overweight" and Photronics Inc.(NasdaqNM:PLAB - News) at "equal weight."
ADVERTISEMENT


Analyst Ted Berg said in a research note that the companies are two of the largest suppliers of photomasks or glass plates used in microchip production.

"Near-term, weak tape-out (mask order) activity and pricing pressure in mature masks create an uncertain earnings outlook," he wrote. "Long-term, given today`s depressed stock prices, upside is potentially large once tape out activity resumes."

Berg noted Photronics is more expensive than DuPont Photomasks on an enterprise value-to-sales basis.

DuPont Photomasks shares closed Tuesday at $21.16, while Photronics closed at $10.12.

[panik]

DuPont Photomasks Announces Preliminary FY 2003 First Quarter Results
Friday October 4, 7:00 am ET


ROUND ROCK, Texas--(BUSINESS WIRE)--Oct. 4, 2002--DuPont Photomasks, Inc. (NASDAQ: DPMI - News) today announced that revenue for the first quarter of fiscal 2003 will be lower than previously expected due to the lingering effects of the semiconductor industry downturn.
ADVERTISEMENT


The company said it now anticipates revenue for the first quarter of fiscal 2003 to be approximately $84.0 million, an increase of 8 percent versus last year`s first quarter revenue of $77.5 million. On a sequential basis, revenue is expected to decrease approximately 11 percent from last quarter`s $94.5 million. The low end of the prior outlook anticipated revenue of $87.0 million.

First quarter earnings per share is expected to be a loss of between $0.30 and $0.32 per share compared to last year`s first quarter loss of $0.17 per share. Earnings were unfavorably impacted by approximately $0.06 per share due to a change in the effective tax rate from 30 percent to 10 percent. Cash and equivalents totaled approximately $144 million at quarter end, compared to $139 million the prior quarter.

"The semiconductor industry continues to suffer the effects of the most severe and prolonged downturn in recent memory," said Peter Kirlin, chairman and chief executive officer of DuPont Photomasks. "Due to the difficult operating environment our customers continue to implement aggressive cost cutting measures, including a slowdown in design releases which translates into fewer mask purchases. End-market improvement will ultimately depend on macroeconomic conditions, but we will continue to aggressively manage all variables within our control as we position our company for an eventual upturn."

The financial outlook for second quarter of fiscal 2003 will be issued during the regularly scheduled conference call, which will be conducted on October 23, 2002.

October 23 Conference Call

DuPont Photomasks will host its regularly scheduled conference call to discuss the company`s financial results for the first quarter of fiscal 2003. The call will be Wednesday, October 23 at 11:00 a.m. Eastern time. The conference call will be broadcast live at 800-915-4836, and a replay will be available for 48 hours following the call at 800-428-6051 (code #263241). In addition, the conference call and replay will be available on the Internet via DuPont Photomasks` Web site, http://www.photomask.com.

About DuPont Photomasks, Inc.

DuPont Photomasks is a leading global provider of microimaging solutions. The company develops and produces advanced photomasks, a key enabling technology used in the manufacture of semiconductor and other microelectronic devices; pellicles, the protective covers for photomasks; and electronic design automation (EDA) software. Headquartered in Round Rock, Texas, DuPont Photomasks operates a global network of manufacturing facilities serving semiconductor makers and other electronics producers around the world. DuPont Photomasks posted worldwide sales of $342 million in fiscal 2002. Information about the company can be found at http://www.photomask.com.

FORWARD-LOOKING STATEMENTS: Certain statements contained in this document that are not historical facts, are "forward-looking statements," as that term is defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that involve a number of risks and uncertainties. Such forward-looking statements may concern growth and future operating results, forecasts, projections, pricing pressures, potential acquisitions and joint ventures, new manufacturing facilities, capital expenditures, the global economic climate, new products and product enhancements, the future importance of photomask technology, the demand for products, competitive factors, research and development activities and expenditures, strategic relationships with third parties, liquidity, and financing and the company`s strategy. Such forward-looking statements are generally accompanied by words such as "intend," "may," "plan," "expect," "believe," "should," "would," "could," "anticipate" or other words that convey uncertainty of future events or outcomes. Such forward-looking statements are based upon management`s current plans, expectations, estimates and assumptions and are subject to a number of risks and uncertainties that could significantly affect current plans, anticipated actions, the timing of such actions and the company`s business, financial position and results of operations. As a consequence, actual results may differ materially from expectations, estimates or assumptions expressed in or implied by any forward-looking statements made by or on behalf of the company. Factors which could cause or contribute to such differences include, but are not limited to, those factors set forth below which are fully discussed under the caption "Risk Factors" in the company`s Annual Report on Form 10-K filed with the Securities and Exchange Commission dated September 9, 2002 and the Form 10-Q dated May 14, 2002 as well as cautionary statements and other factors set forth as Risk Factors: relationship with and dependence on semiconductor industry, fluctuations in quarterly and annual earnings, capital intensive industry, significant fixed costs, rapid technological change, competition, significant international operations, world-wide market volatility, manufacturing risks, fluctuation of income tax rates, concentration of customers, concentration of and dependence on suppliers, dependence on management and technical personnel, volatility of market price, potential acquisitions, technology challenges in the manufacture of advanced photomasks, intellectual property, changes in governmental laws and regulations, potential effect of shares eligible for future sales and registration rights. Results for the interim period are not necessarily indicative of the results for the year. The forward-looking statements are made as of the release date hereof and the company disclaims any intention or obligation to update or revise any forward-looking statements or to update the reasons why the actual results could differ materially from those projected in the forward-looking statements, whether as a result of new information, future events or otherwise.



--------------------------------------------------------------------------------
Contact:
DuPont Photomasks Inc., Round Rock
Tim Mireault, 512/310-6362
[e-mail]



--------------------------------------------------------------------------------
Source: DuPont Photomasks, Inc.

[panik]

7:23am 10/04/02
DuPont Photomasks warns of Q1 earns, rev. miss (DPMI) By Tomi Kilgore
DuPont Photomasks (DPMI) warned that fiscal first quarter losses would be greater than expected and revenue would fall short of forecasts due to the "lingering effects" of the semiconductor industry downturn. The provider of chip-making technology now expects to lose 30 to 32 cents and record revenue of $84 million for the quarter ending September, while analysts surveyed by Thomson First Call had been forecasting a loss of 7 cents a share and revenue of $90.6 million, on average. "The semiconductor industry continues to suffer the effects of the most severe and prolonged downturn in recent memory," said Peter Kirlin, the company`s chairman and chief executive. The stock closed Thursday down 94 cents at $22.16.

[panik]

Austin Chip Companies See Reasons For Optimism Despite Slump
Wednesday October 9, 4:09 pm ET

By Bob Sechler, Of DOW JONES NEWSWIRES


AUSTIN, Texas -(Dow Jones)- Leaders of some semiconductor-related companies based here voiced optimism Wednesday about their long-term prospects but declined to predict the timing for a major industrywide upturn.
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DuPont Photomasks Inc. (NasdaqNMPMI - News) Chief Executive Peter Kirlin said his customers are forecasting market growth for 2003, although he cautioned that their anticipated rates of growth have been declining in recent months. DuPont Photomasks makes precision templates used in semiconductor design.

"The good news is growth" is still being projected for 2003 by many of DuPont Photomasks` semiconductor customers, Kirlin said following a presentation at the Silicon Hills Summit, an annual semiconductor event here.

He reiterated his company`s recently lowered financial guidance for its fiscal first quarter that ended in September.

The company announced last week that it expects a first-quarter loss of 30 cents to 32 cents a share on revenue of about $84 million. DuPont Photomasks previously expected revenue of about $87 million.

The company had a loss of 17 cents a share on $77.5 million in sales in the year-ago period.

Despite the lowered guidance, Kirlin said he`s optimistic that his company is well-positioned for an eventual chip-industry rebound, with an increasing portion of its revenue coming from the most technologically advanced, highest- margin photomasks.

"We continue to expect to see the leading edge of the rebound" when it comes, Kirlin said.

Meanwhile, Cirrus Logic Inc. (NasdaqNM:CRUS - News) Chief Executive David French declined to make any specific projections beyond this year, except to say he thinks his company can succeed even without an overall economic recovery.

Cirrus makes chips used in digital consumer entertainment devices, and French said the company stands to benefit as those devices, such as digital video recorders, increasingly take market share from their lower-tech counterparts.

"Digital consumer electronics is an excellent growth area," French said.

Still, French reiterated his company`s recently lowered sales projections for its fiscal second quarter that ended Sept. 28, and he also said indications are that "it`s not going to be a booming Christmas this year" for sales of electronics.

The company announced last week that it expects fiscal second-quarter sales of $72 million to $73 million, down slightly from previous guidance of $76 million. It said it expects pro forma loss for the quarter of 8 cents to 10 cents a share, which is within its previous guidance.

Cirrus Logic also said it expects its fiscal third-quarter sales, which include the holidays, to be flat with the second quarter.

-By Bob Sechler, Dow Jones Newswires; 512-236-9637

[panik]

International SEMATECH and DuPont Photomasks Enter Into Cross-Licensing Agreement for Test Photomasks
Tuesday October 22, 7:02 am ET
DIRRT Test Masks with UIS Tighten Standards for Mask Inspection and Repair Tools


AUSTIN & ROUND ROCK, Texas--(BUSINESS WIRE)--Oct. 22, 2002-- Through a recently signed cross-licensing agreement, International SEMATECH (ISMT) and DuPont Photomasks have combined their intellectual property for producing test photomasks. The goal is to use test masks based on the combined IP to strengthen industry standards for photomask inspection and repair systems at the leading edge technology nodes.
ADVERTISEMENT


Under the terms of the agreement, DuPont Photomasks will be the exclusive merchant photomask manufacturer of test photomasks based on International SEMATECH`s DIRRT (Defect Inspection Reticle and Repair ReTicle) mask design and DuPont Photomasks` patent-pending Universal Inspection Standard(TM) (UIS). ISMT and its member companies have the right to use both the DIRRT and UIS technologies internally. They may use DIRRT masks with UIS to evaluate the overall capability of photomask inspection and repair systems, and to aid in algorithm and process development. In return for the exclusive right to commercialize the DIRRT design, DuPont Photomasks has licensed the UIS technology to International SEMATECH and its member companies.

"The fusion of the ISMT-designed DIRRT test reticle suite with DuPont Photomasks` UIS provides a valuable tool that will benefit the semiconductor industry as a whole," said Betsy Weitzman, chief operating officer for advanced technology at International SEMATECH. "We expect that this partnership will enable us to meet our members` critical need for development and characterization of advanced inspection and repair tools at the challenging nodes on the horizon."

Kurt Kimmel, ISMT`s mask program manager, added, "Our objective upon initiating this project was to create a universal test vehicle to serve multiple purposes: assessment and improvement of photomask inspection equipment and algorithms as well as process development for defect repair. The ultimate goal is higher mask fabrication yields which is critical to the reduction of mask cost and cycle time."

According to Kimmel, International SEMATECH presently uses DIRRT test masks with UIS to assess new tools down to the 100-nanometer node. The deal also includes provisions for the future development and production of DIRRT test masks with UIS at the 65-nanometer level and beyond.

The DIRRT test mask with UIS evaluates the sensitivity and functionality of photomask inspection and repair systems. The UIS sensitivity module uses basic mask patterns at one technology node to gauge a tool`s ability to detect the smallest defect on a photomask. A new index introduced by DuPont Photomasks, the UIS "Runability Module," measures a tool`s ability to run universal industry mask patterns at multiple technology nodes with maximum sensitivity and low false-detection rates. Among the universal mask patterns on the UIS runability module are optical proximity correction (OPC) and phase shift mask (PSM) features. In the past, test masks only had the sensitivity module.

"Shrinking feature sizes and the increased use of resolution enhancement technologies such as OPC and PSM necessitated the creation of a more rigorous standard for evaluating photomask inspection and repair systems," noted Dr. Jerry Chen, development project leader of the DuPont Photomasks team that created UIS. "The UIS runability module, in addition to the sensitivity module, will enable DIRRT test masks to more accurately simulate the complexity of production masks used today and those that will be used in the future."

One of the prime features of the UIS "Runability Guide" is the measurement of false-detection rates. A false detection is the identification of a false defect, which is a feature on the mask with little or no effect on the ultimate image that is printed on the wafer. As feature sizes have decreased, false defects have increased, leading to higher false-detection rates, reduced mask yields and higher production costs.

"UIS is a prime example of DuPont Photomasks` efforts to mitigate mask costs by focusing on the final image on wafer," said Bruce Griffing, vice president engineering technology and chief technology officer of DuPont Photomasks. "Internally, we use the UIS to select photomask inspection tools with the ability to distinguish between printable and non-printable defects. By identifying and repairing only the defects that will print on the wafer, we can help customers to improve yields and control mask costs. Similarly, semiconductor fabs and other mask manufacturers can use the DIRRT test mask with UIS to benchmark inspection and repair tools prior to making important investment decisions."

Chipmakers and mask shops can also use the UIS runability guide of the DIRRT test mask to increase first-try success rates in mask production, as well as to evaluate mask-writing tools. Fabless companies and design houses can employ DIRRT test masks with UIS to verify designs since UIS can be customized with customer-specific patterns. DuPont Photomasks currently offers DIRRT test masks with UIS at technology nodes of 180, 150, 130 and 100 nanometers.

About International SEMATECH

International SEMATECH (ISMT) is a global semiconductor technology development consortium that has effectively represented the semiconductor manufacturing industry on innovation issues since 1988; its members are Agere Systems, AMD, Hewlett-Packard, Hynix, IBM, Infineon, Intel, Motorola, Philips, STMicroelectronics, Texas Instruments and TSMC. ISMT conducts state-of-the-art research, and is a highly-regarded technology partner whose mission is to promote the interests common to all chipmakers. It has extensive experience collaborating with equipment and materials suppliers, as well as government and academic research centers, to refine the tools and technology necessary to produce future generations of chips. Additional information may be found at www.sematech.org.

About DuPont Photomasks

DuPont Photomasks is a leading global provider of microimaging solutions. The company develops and produces advanced photomasks, a key enabling technology used in the manufacture of semiconductor and other microelectronic devices; pellicles, the protective covers for photomasks; and electronic design automation (EDA) software. Headquartered in Round Rock, Texas, DuPont Photomasks operates a global network of manufacturing facilities serving semiconductor makers and other electronics producers around the world. DuPont Photomasks posted worldwide sales of $342 million in fiscal 2002. Information about the company can be found at http://www.photomask.com.

Forward-looking Statements

Except for the historical information and discussions contained herein, statements contained in this release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors for example, the semiconductor industry cycles, technological challenges, technical difficulty of manufacturing high end photomasks, material supply, stability of forecasted product requirements, that could cause actual results to differ materially as discussed in the company`s filings with the Securities and Exchange Commission, including its most recent Forms 10-K and 10-Q as well as cautionary statements and other factors set forth as Risk Factors. Results for the interim period are not necessarily indicative of the results for the year. The forward-looking statements are made as of the release date hereof and the company disclaims any intention or obligation to update or revise any forward-looking statements or to update the reasons why the actual results could differ materially from those projected in the forward-looking statements, whether as a result of new information, future events or otherwise.



--------------------------------------------------------------------------------
Contact:
DuPont Photomasks, Inc.
Tim Mireault, 512/310-6362
[e-mail]
or
Loomis Group
Clare Casey, 415/882-9494
[e-mail]
or
International SEMATECH
Anne Englander, 512/356-7155
[e-mail]



--------------------------------------------------------------------------------
Source: DuPont Photomasks

[panik]

Reuters
DuPont Photomasks quarterly loss widens
Wednesday October 23, 7:28 am ET


ROUND ROCK, Texas, Oct 23 (Reuters) - DuPont Photomasks (NasdaqNMPMI - News), a maker of glass plates used in microchip production, reported a wider quarterly loss on Wednesday due to a weakened semiconductor market.
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In the company`s fiscal first quarter ended Sept. 30, DuPont Photomasks said it lost $5.5 million, or 31 cents a share, compared to a loss of $3.0 million, or 17 cents a share. Revenue was $84.2 million versus $77.5 million a year earlier.

Analysts were expecting a loss in the range of 29 cents to 32 cents a share, with an average estimate of 31 cents, according to a poll of 7 analysts by market tracker Thomson First Call.

The company also said it expected to report second-quarter revenue between $75 million and $85 million with a loss per share in the range of 31 cents to 70 cents. Analysts were expecting a second-quarter loss in the range of loss of 16 cents to loss of 34 cents with a mean estimate of a loss of 25 cents.

[panik]

8:35AM Dupont Photomask downgraded at Needham (DPMI) 28.16: Needham downgrades to Hold from Buy based on valuation; in addition, firm believes that DPMI may encounter constraints on its cash as its faces a threefold challenge of maturing debt, capital investment needs, and poor profitability; at the same time, the high cost of leading edge photomasks combined with growing costs of leading edge designs may be slowing the growth of leading edge design starts. Price target is $26.

[panik]

Reuters
UPDATE - DuPont Photomasks to cut work force 10 pct
Wednesday December 4, 9:40 am ET


(Adds details, background, stock price)
ROUND ROCK, Texas, Dec 4 (Reuters) - DuPont Photomasks Inc. (NasdaqNMPMI - News), a manufacturer of specialized tools used to make semiconductors, on Wednesday said it would cut about 10 percent of its work force, or about 170 jobs, and consolidate production into new facilities.

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The company said it will take after-tax charges of $12 million to $14 million in its fiscal second quarter ending this month.

DuPont Photomasks, which makes etched plates of quartz or glass used by semiconductor makers to transfer circuit patterns onto silicon wafers, said most of the job cuts will come in Europe, including 140 jobs in France and Germany. It said 30 jobs are being cut in Round Rock, Texas, its headquarters.

The company said it will take additional charges for severance payments to the European employees who lose their jobs. Those payments, which have yet to be negotiated with the relevant work councils, will be incurred in future periods, the company said.

DuPont Photomasks said it expects second-quarter revenues of $79 million to $82 million, with a loss of 45 cents to 55 cents per share, assuming a tax rate of 10 percent. Analysts expect a loss of 44 cents per share on revenues of $80 million, according to research firm Multex.

The semiconductor industry as a whole continues to struggle in a sluggish global economy, which along with overproduction of electronic components led to the sector`s worst downturn on record last year.

Global orders for equipment used to make semiconductors dropped in the third quarter amid weak demand after a small rise in the second quarter, according to the Semiconductor Equipment and Materials International trade group.

Shares of DuPont Photomasks fell $1.54 at $25.30 Wednesday on Nasdaq. They have risen almost 70 percent since hitting a low of $15.80 in October, but are still far off the 52-week high of $54.30 reached in March.

The Philadelphia Stock Exchange semiconductor index (Philadelphia:^SOXX - News), a proxy for the chip sector, has also risen about 70 percent since October.

[panik]

DuPont Photomasks, Inc. Announces Second Quarter of Fiscal 2003 Results
Thursday January 23, 7:00 am ET


ROUND ROCK, Texas--(BUSINESS WIRE)--Jan. 23, 2003--DuPont Photomasks, Inc. (NasdaqPMI - News) today announced results for the quarter ended December 31, 2002.
Revenue for the second quarter of fiscal 2003 totaled $81.0 million, 7 percent less than fiscal 2002`s second quarter revenue of $86.6 million. Sequentially, revenue declined by 4 percent from $84.2 million in the first quarter of fiscal 2003. For the first half of fiscal 2003, revenue totaled $165.2 million, essentially flat as compared to the $164.1 million in the same period from the previous year.

Net loss for the second quarter of fiscal 2003 was $23.0 million, or $1.28 per share, compared with net income of $0.4 million, or $0.02 per share, in fiscal 2002`s second quarter. Fiscal 2003`s second quarter included the effect of special charges of $14.3 million, or $0.80 per share, primarily related to the previously announced consolidation of European and U.S. manufacturing facilities. These second quarter special charges included:

Facilities consolidation charges of $8.8 million
Employee severance charges of $1.5 million
Other charges of $2.2 million
Income tax charges of $1.8 million to establish a valuation allowance against deferred tax assets resulting from the decision to consolidate European facilities
Excluding special charges, the net loss for fiscal 2003`s second quarter was $8.7 million, or $0.48 per share at an effective tax rate of 1 percent. Applying a tax rate of 10 percent to the Company`s loss, consistent with prior guidance, would have generated a net loss of $0.44 per share.

Cash and cash equivalents totaled $162.0 million at quarter end compared to $108.9 million in the second quarter of the prior year, and $144.5 million in the prior quarter.

During the quarter, revenue from advanced photomask products supporting 180-nanometer and below design rules increased 29 percent versus the year-ago quarter and represented 48 percent of total revenue.

"We are pleased to report that DuPont Photomasks generated free cash flow for the third consecutive quarter despite the difficult market environment," said Peter Kirlin, chairman and chief executive officer of DuPont Photomasks. "The strength of our balance sheet, coupled with our technology leadership position and leading-edge global manufacturing capabilities, position us well to expand our market share as customers march down the technology curve."

Additional Information: The Company will host a publicly available conference call today at 11:00 a.m. Eastern time. The conference call will be broadcast live at 800/360-9865, and a replay will be available for 48 hours following the call at 800/428-6051 (code no. 282283). In addition, the conference call and replay will be available on the Internet via DuPont Photomasks` Web site, http://www.photomask.com.

About DuPont Photomasks, Inc.

DuPont Photomasks is a leading global provider of microimaging solutions. The Company develops and produces advanced photomasks, a key enabling technology used in the manufacture of semiconductor and other microelectronic devices; pellicles, the protective covers for photomasks; and electronic design automation (EDA) software. Headquartered in Round Rock, Texas, DuPont Photomasks operates a global network of manufacturing facilities serving semiconductor makers and other electronics producers around the world. DuPont Photomasks posted worldwide revenue of $342 million in fiscal 2002. Information about the Company can be found at http://www.photomask.com.

FORWARD-LOOKING STATEMENTS: Certain statements contained in this document that are not historical facts, are "forward-looking statements," as that term is defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that involve a number of risks and uncertainties. Such forward-looking statements may concern growth and future operating results, forecasts, projections, pricing pressures, potential acquisitions and joint ventures, new manufacturing facilities, capital expenditures, the global economic climate, new products and product enhancements, the future importance of photomask technology, the demand for products, competitive factors, research and development activities and expenditures, strategic relationships with third parties, liquidity, financing, and the Company`s strategy. Such forward-looking statements are generally accompanied by words such as "intend," "may," "plan," "expect," "believe," "should," "would," "could," "anticipate" or other words that convey uncertainty of future events or outcomes. Such forward-looking statements are based upon management`s current plans, expectations, estimates and assumptions and are subject to a number of risks and uncertainties. As a consequence, actual results may differ materially from expectations, estimates or assumptions expressed in or implied by any forward-looking statements made by or on behalf of the Company. Factors which could cause or contribute to such differences include, but are not limited to, those factors set forth below, certain of which are more fully discussed under the caption "Risk Factors" in the Company`s Annual Report on Form 10-K filed with the Securities and Exchange Commission dated September 9, 2002 and the Form 10-Q dated November 14, 2002 as well as cautionary statements and other factors set forth as Risk Factors in those filings: the outcome of negotiations with works councils, relationships with and dependence on the semiconductor industry, fluctuations in quarterly and annual earnings, operating in a capital intensive industry, significant fixed costs, rapid technological change, competition, significant international operations, world-wide market volatility, manufacturing risks, fluctuation of income tax rates, concentration of customers, dependence on suppliers, dependence on management and technical personnel, volatility of market price, potential acquisitions, technology challenges in the manufacture of advanced photomasks, intellectual property, changes in governmental laws and regulations, and the potential effect of shares eligible for future sales and registration rights. Results for any interim period are not necessarily indicative of the results for the year. The forward-looking statements are made as of the release date hereof and the Company disclaims any intention or obligation to update or revise any forward-looking statements or to update the reasons why the actual results could differ materially from those projected in the forward-looking statements, whether as a result of new information, future events or otherwise.

DuPont Photomasks, Inc.
Consolidated Income Statement
(unaudited; $ in thousands except per share amounts;
quarter and six months ended December 31, 2002 and 2001)

Q203 Q202 YTD03 YTD02
----------- ----------- ----------- -----------

Revenue, net $ 80,969 $ 86,625 $ 165,209 $ 164,086
Cost of Goods Sold 71,000 67,422 141,734 134,686
Selling, General and
Administrative
Expense 10,415 10,107 20,335 19,567
Research and
Development Expense 7,592 6,868 15,166 13,328
Special Charges 12,507 -- 12,507 --
----------- ----------- ----------- -----------

Operating (Loss)
Profit (20,545) 2,228 (24,533) (3,495)
Other Income, net 236 1,039 110 1,258
----------- ----------- ----------- -----------

(Loss) Income Before
Income Taxes and
Minority Interest (20,309) 3,267 (24,423) (2,237)
Provision for (Benefit
from) Income Taxes 1,769 507 1,358 (3,613)
----------- ----------- ----------- -----------

(Loss) Income Before
Minority Interest (22,078) 2,760 (25,781) 1,376
Minority Interest in
Income of Joint
Ventures (939) (2,393) (2,731) (3,992)
----------- ----------- ----------- -----------

Net (Loss) Income $ (23,017) $ 367 $ (28,512) $ (2,616)
=========== =========== =========== ===========

(Loss) Earnings Per
Share:

Basic $ (1.28) $ 0.02 $ (1.59) $ (0.15)
Diluted (1.28) 0.02 (1.59) (0.15)

Weighted Average
Shares Outstanding:

Basic 17,993,994 17,854,578 17,982,365 17,844,930
Diluted 17,993,994 18,055,338 17,982,365 17,844,930


Adjustments for Pro forma Net Loss
This pro forma information is not prepared in accordance
with generally accepted accounting principles.

Q203 YTD03
----------- -----------
Reported Net Loss $ (23,017) $ (28,512)

Special Charges 12,507 12,507

Valuation Allowance Against
Deferred Tax Assets 1,812 1,812
----------- -----------

Pro forma Net Loss $ (8,698) $ (14,193)
=========== ===========

Pro forma Diluted Loss
Per Share $ (0.48)$ (0.79)



DuPont Photomasks, Inc.
Consolidated Balance Sheet
(unaudited; $ in thousands)

Dec. 2002 June 2002
----------------------
Cash and Cash Equivalents $ 161,973 $ 138,918
Accounts Receivable, net 57,331 66,511
Inventories, net 12,776 11,633
Other Current Assets 11,950 20,937
----------- -----------

Total Current Assets 244,030 237,999
Property and
Equipment, net 441,610 462,147
Other Assets, net 62,069 72,649
----------- -----------

Total Assets $ 747,709 $ 772,795
=========== ===========

Accounts Payable $ 57,234 $ 56,539
Other Current Liabilities 62,460 71,134
----------- -----------

Total Current Liabilities 119,694 127,673
Other Liabilities 185,365 175,459
Stockholders` Equity 442,650 469,663
----------- -----------

Total Liabilities and
Stockholders` Equity $ 747,709 $ 772,795
=========== ===========


DuPont Photomasks, Inc.
Statement of Cash Flows
(unaudited; $ in thousands;
six months ended December 31, 2002 and 2001)

YTD03 YTD02
------------------------
Cash Flows from
Operating Activities:
Net Loss $ (28,512) $ (2,616)
Depreciation and Amortization 49,443 44,741
Special Charges 12,507 --
Other 4,471 (485)
Changes in Assets and
Liabilities 15,818 (13,571)
----------- -----------

Net Cash Provided by
Operating Activities 53,727 28,069
Net Cash Used in
Investing Activities (31,985) (64,402)
Net Cash Provided by
Financing Activities 726 6,818
Effect of Exchange
Rate Changes on Cash 587 (214)
----------- -----------

Net Cash Flow $ 23,055 $ (29,729)
=========== ===========



--------------------------------------------------------------------------------
Contact:
DuPont Photomasks, Inc., Round Rock
Tim Mireault, 512/310-6362
[e-mail]



--------------------------------------------------------------------------------
Source: DuPont Photomasks, Inc.

[Chipdesign]

Sticker shock for photomasks

May 7, 2003 2:01pm


When Austin-based Silicon Laboratories Inc. was ready to put its first chips on the market in 1997, the fabless company decided to work with a pure-play foundry that would help it manage the rising costs for photomasks. A mask set, required to transfer chip designs onto silicon, cost about $30,000, which was a relatively steep entry price for the year-old startup.

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Today, that seems like a bargain price. Mask costs have spiraled into six figures for the latest generation of technology. The price for a set of masks needed to produce leading-edge chips has soared 2,300% in the past decade, starting at around $25,000 for 0.50-micron devices and jumping up to $600,000 for 0.13-micron devices, which are ramping up now. Moreover, the industry has been warned to expect to pay up to $1.5 million for the next generation (see chart, page 53). Taking chip designs to masks is Silicon Labs` second-biggest expense, after personnel, says Daniel Artusi, president and chief operating officer. "That`s pretty shocking," Artusi says.

The skyrocketing costs, especially during the worst downturn in the chip industry`s history, have slowed IC-design innovation, put unprecedented pressure on photomask suppliers to help their customers and spurred diverse efforts by software companies and others to blunt the price spikes. For example, leading foundries put multiple customers` designs on a single mask, so they can share costs. DuPont Photomasks Inc. , a global supplier of masks in Round Rock, TX, recently began selling software to correct design errors before the designs are sent to the mask fab.

Still, these are incremental steps and stopgap measures, says Kurt Kimmel, mask program strategy manager for the semiconductor consortium International Sematech in Austin. The hard truth is that absent technological breakthroughs, chip companies should not expect much relief from high mask costs as long as Moore`s Law holds true. That famous observation made by Gordon Moore of Intel Corp. , Santa Clara, CA, in the 1960s holds that memory chip performance doubles every 18 to 24 months, or from one design node to the next. It means, for example, that reducing line and transistor widths from 0.25 microns to 0.18 microns doubles the number of transistors on a chip.

"The chip maker gets a huge benefit, but the mask maker has twice as many transistors to write at a tighter spec," says G. Dan Hutcheson, chief executive officer and president of San Jose-based VLSI Research Inc. "It`s definitely a huge issue, and it`s not going to go away easily."

A trick of the light
Photomasks, quartz plates several inches thick and 6 inches across, transfer chip designs onto silicon wafers in a process called optical lithography. An advanced mask set can include two dozen or more plates, or reticles. Each imparts specific design elements or layers of the chip onto the silicon. In the 1990s, mask makers were able to do extraordinary things with light to etch shrinking chip designs onto wafers. Ordinary light produces wavelengths about 0.6 microns wide, or about 1/200th the width of a human hair. By the mid-1990s, when mask makers came into their own by providing a key enabling technology for the chip industry, they used ultraviolet light and then deep-ultraviolet light, which has a wavelength of 0.248 microns.

That cleared the way for chips at the 0.25-micron node. Those mask sets cost about $100,000 initially, and the price has dropped somewhat since then. On their inexorable march toward tighter design rules, leading makers of integrated circuits soon designed chips at the 0.18-micron node, or 1/500th the thickness of a human hair. ICs at the 0.13-micron node are ramping now, with the 90-nanometer node next in the coming cycle. To keep up, mask makers have figured out how to exploit predictable behavior of light.

Using techniques called phase shifting and optical-proximity correction, they have been able to etch features on the masks that are narrower than even deep-ultraviolet light waves. Analysts, chip companies and mask makers say soaring prices primarily reflect the increased complexity of replicating the incredible shrinking circuit designs on the masks. The shrinking geometries of chips are a major factor in mask costs, requiring more time and precision for pre-paring masks, which are subject to yield issues just as chips are. Leading-edge chip designs have tens of millions of gates versus, say, 200,000 just a few years ago. The subwavelength era at 0.25 microns introduced new challenges.

All this complexity adds time to mask making and more opportunities for errors. It also helps make the case for more automation in the mask plants. A survey of leading mask makers released last year by International Sematech revealed that a surprising 18 percent of yield losses resulted from human mistakes in manufacturing and data entry.

"That means you have to throw away more masks before you get a good one," notes Gary Smith, of Gartner Dataquest, San Jose. "Mask prep is especially expensive." But Smith argues that mask costs are less of a problem for the industry than the cost of designing the chips in the first place. "The real issue is that IC design is getting far more complex than it has ever been," he says. "You may see a million-dollar mask at 90 nanometers, but the design itself costs $20 million or so."

Mask fabs behind in technology
No one is accusing the photomask industry of price gouging. The two leading U.S. mask makers, Photronics Inc. , Brookfield, CT, and DuPont Photomasks, lost money last year. Indeed, revenues for the entire industry have stalled at about $2.5 billion for the past three years, despite spiraling prices for advanced mask sets.

"The cost of equipment needed to write, imprint and repair photomasks has risen somewhat sharply," says Tom Reeves, vice president of ASICs for IBM Microelectronics , Burlington, VT. In fact, the cost of building and equipping a mask fab has grown fivefold since 1990, from about $50 million to $250 million today, according to VLSI Research. That compares to about $3 billion for a chip fab, but the price tag for those plants has remained relatively constant in recent years. Ironically, despite the escalating costs for new mask-making plants, the facilities are technological laggards compared to other fabs.

"A mask fab is years behind—a decade behind—in sophistication of equipment and in automation, process controls, software analysis systems for yield management and logistical and productivity controls," says International Sematech`s Kimmel. The main reason is that mask industry vendors serve a much smaller market. Given that tools used for etching IC designs on masks may cost $6 million to $12 million, the market for such tools doesn`t justify the R&D investment that vendors pour into fab equipment.

"The business case is simply not there for putting the level of money that a Nikon , an ASML Holding A.V. or a Canon pours into scanners in the hopes of selling hundreds of units per year," Kimmel says. Meanwhile, mask equipment makers "will fantasize about selling 10 systems in a year," he says. Indeed, sales of mask-making equipment slipped 31 percent last year, to $46.7 million, from $68 million in 2001, according to VLSI Research. The decline in investment didn`t lower costs for masks, because mask makers still must depreciate equipment purchases over five years, Hutcheson says.

ASICs under pressure
The problem of soaring mask costs is particularly acute for some suppliers of application-specific integrated circuits. Many ASICs are built into video games, digital cameras, mobile phones and other consumer products that sell millions of units. But others are custom-designed, low-volume chips for the military and health care devices such as CAT scanners. Makers of those ASICs are finding it increasingly hard to recover their up-front costs, which include photomasks. An ASIC run may total as few as 10,000 chips. So given 0.18-micron design rules and $260,000 for the mask set, the cost is $26 per chip.

"If they want only 50 or 100 working modules initially and the mask set costs $1 million, well, that`s $10,000 per module," says Sematech`s Kimmel. Hutcheson agrees. "At 130 nanometers, it balloons to $87 each, and that`s for volumes of 10,000 units. The end market just won`t sustain those prices."

By comparison, the memory chips and microprocessors in PCs are produced by the millions and their costs per mask set can be measured in pennies. Memory and microprocessor masks accounted for only about 10% and 5%, respectively, of mask volume in the year that ended in April 2002, according to Sematech`s survey. ASICs and other logic devices accounted for a startling 70% of mask volume.

"If you squeeze some of the mask makers hard enough, they will admit that they actually charge more for memory masks and high-volume microprocessor masks, to essentially subsidize the lower prices on ASICs," says Kimmel.

The survey, which went largely unnoticed outside the mask industry, turned up some counterintuitive findings. About half the mask sets shipped were built to 0.50-micron or larger design rules. That node ramped 10 years ago. About 80% of masks shipped during the survey period were at 0.25-micron design rules or above. Costs for those mask sets are only about $25,000 and $85,000, respectively. That means that the vast majority of chips being sold are based on trailing-edge nodes, whose mask costs are relatively cheap compared to leading-edge designs.

Only a fraction of the mask output during the survey period was at 0.13-micron design rules. But reflecting the huge difference in costs between masks for trailing-edge technology and today`s advanced masks, sets at the 0.13-micron node accounted for $700 million, or 28%, of the industry`s $2.5 billion in revenue last year, according to VLSI Research. "This is why mask makers put such emphasis on leading-edge reticles," says Hutcheson. "They are the primary revenue-growth driver for the mask industry."

Rays of hope
The problem of expensive masks may have long-term implications for the chip industry. The high costs of photomasks are a factor in the decline in the number of new IC designs over the past five years. According to VLSI Research, there were 30,000 chip designs last year, down 23% from nearly 39,000 in 1998. The days when a handful of designers could set up workstations in a Silicon Valley garage and come up with an innovative chip design are virtually gone. They simply cannot afford to go into production.

"It`s really stifling innovation," says Kimmel. "Typically, these new designs are going to demand the latest lithographic techniques and the most-costly masks."

To ameliorate costs, mask makers have responded with numerous products and services. Meanwhile, some vendors are offering targeted technologies that can help control costs between chip design and wafer tape-out. One of the more intriguing and speculative responses is what Sematech calls "maskless technology." It refers to various direct-write techniques that allow chip companies to bypass masks. The hope is that the companies can get at least enough wafers to test their devices before committing to volume runs and mask sets, Kimmel says. Last year, the International Technology Roadmap for Semiconductors (ITRS) put direct-write on the 65-nm semiconductor road map.

Deep-pocket concerns such as ASM Lithography, of Veldhoven, The Netherlands, and KLA-Tencor , San Jose, are backing some of this R&D. "These are savvy equipment companies. They don`t just throw their money around," Kimmel says. Canon Inc. , Tokyo, and others are developing systems that expose millions of pixels at a time on a wafer. A programmable mask under development by Swedish firm Micronic Laser Systems AB uses an array of pixels that can be programmed instantaneously to reproduce a chip design. The problem with these systems, so far, and it`s a big one, is throughput. They produce fewer than 5 wafers per hour, compared to 120 per hour for a state-of-the-art scanner.

In response to customer concerns about rising prices, DuPont Photomasks changed the way it describes itself from photomask maker to micro-imaging solutions provider, and it has enhanced its offerings. It started working more closely with designers at the front end of the process. DuPont also acquired BindKey Technologies Inc. , Sunnyvale, CA, which developed a software "cheat sheet" that shortens the time between design verification and tape-out. The program, which starts at $15,000, helps chip companies correct design violations and avoid new ones. That could cut back on the hours that highly paid designers typically spend in that intensive process. A beta version of a companion program would automatically fix design errors will be considerably more expensive. A one-year license to use it will cost $250,000, Blake said.

The delivery of `pizza wafers`
Fabless Silicon Labs, which makes chips for communications products such as modems, set-top boxes and cellular handsets, takes a different route. It rides the Cybershuttle, Taiwan Semiconductor Manufacturing Company Ltd. `s response to mask-price inflation. The shuttle is a multiproject, or "pizza," wafer, ferrying designs at various design nodes from a variety of chip companies.

"We are sharing that multiproject wafer and the cost of that mask with other companies," says Daniel Artusi of Silicon Labs. "The Cybershuttle is like a train with fixed departure dates; you board when you have your design."

United Microelectronics Corp. , IBM and Chartered Semiconductor Manufacturing have versions of the multiproject wafer, says Kimmel. Although the programs give chip makers at least enough devices for design validation, he says, they are treading water until a better solution to escalating mask costs comes along. "The problem with Cybershuttle is that it doesn`t represent a breakthrough. It`s kind of a clever desperation move," Kimmel says.

Silicon Labs is happy to be on board, however. The company estimates that TSMC`s Cybershuttle reduces its mask costs by at least 75%.

Artusi says TSMC`s Cybershuttle allows Silicon Labs to "play with the big dogs in the semiconductor industry" by lowering its up-front costs. The company`s largest customer is Seoul-based Samsung Electronics , which uses Silicon Labs` chips for its GSM cell phones. "The barriers to developing ICs using leading-edge technology are much lower," Artusi says. "In addition to the lower cost, we have shorter cycles through the fab, because several companies are sharing the same mask and wafer."

LSI Logic Corp. , Milpitas, CA, a leading producer of ASIC chips for the communications and storage markets, has watched its mask costs soar from $225,000 for 0.18-micron devices to $750,000 for 0.11-micron devices in the past five years. Ronnie Vasishta, vice president of ASIC technology marketing, expects mask prices to climb to $1.2 million for the 90-nm node.

In response to the climbing costs of both designs and masks, the company last year announced RapidChip, a platform product aimed at lowering the entry cost of custom-designed logic chips. It allows customers to add their own designs, or intellectual property, on top of a base platform of common components. That will help control mask costs, says Vasishta, and it means lower nonrecurring engineering costs to amortize on low-volume chips. The result is hybrid chips, rather than standard-cell ASICs.

"The only design-specific masks are a few metal masks," he says. "If the volume takes off, the RapidChip product can be migrated to an ASIC."

Dan Scovel, an industry analyst at Needham & Co., New York, NY, says LSI Logic and other ASIC makers continue to pass on the costs of photomasks to their customers. But the rising costs of design and mask-making mean that those companies are increasingly limited to high-volume chip applications. "There is a shrinking pool of volume customers," Scovel says.

Tom Blake, DuPont Photomasks` vice president of marketing, offers fabless chip makers a ray of hope of a different sort. He says the semiconductor industry has slowed its advance to next-generation ICs. If true, that will give fabless companies a respite from upgrading their chips every two years, which was the pattern of the 1990s.

Based on conversations with his customers and the failure of 0.13-micron devices to ramp last year as expected, Blake says the industry is returning to its historical pattern of ramping next-generation devices every three years.

"People will still claim that they are maybe closer to the two-year cycle and that they`re pushing the envelope of 65nm now," Blake says. "But it`s an admission, finally, by the industry that we`re going to have to go back to three-year cycles."

That`s not entirely true, counters Gartner Dataquest`s Smith. Although many fabless companies that rely on foundries for both mask making and wafer production may be slowing to three-year cycles, the major integrated device manufacturers (IDMs), such as Intel and IBM, are maintaining their breakneck pace toward the next-generation nodes.

"What we have seen is that the super IDMs have been able to maintain the two-year road map," Smith says. Partly because of that, high-end fabless vendors such as San Jose-based Xilinx Inc. and Nvidia Corp. , Santa Clara, CA, among others, have taken their foundry business to IBM. Those foundry contracts are one reason Gartner Dataquest believes that IBM has overtaken Singapore-based Chartered as No. 3 in global foundry revenue.

Like Smith, IBM`s Reeves believes that the industry may be making too much of the rise in mask costs. Reeves says prices are starting to come down as mask makers are finding ways to produce some reticles with less-costly processes but with newer tools.

"Although there was great press coverage that 90-nanometer mask sets in 2002 were $1.3 million per set," Reeves notes, "the price has already dropped in 2003 to $800,000 per set."

How will expensive photomasks affect the way you do business? Send your insights [e-mail].

MASK COSTS Technology
Mask Set Cost (in thousands)

0.50 micron
$25

0.35 micron
$50

0.25 micron
$85

0.18 micron
$250

0.13 micron
$600

90 nanometer
$1,500