UTAC To Offer Southeast Asias First 300 mm Wafer Sort and Laser Processing Capability Using ESI System

UTAC Trailblazes Southeast Asias 300-mm Wafer Sorting Initiative

ESI
Investor Relations
Joe Reinhart (503) 671-5500
Press Relations
Alix Smith (503) 671-5467

UTAC
Investor/ Public Relations
Eddy Tan (65) 6551-1135
eddy_tan@utac.com.sg

FOR RELEASE

Singapore and Portland, Oregon (November 18, 2002) -- Electro Scientific Industries, Inc. (Nasdaq - ESIO) and United Test and Assembly Center Ltd. (UTAC") today announced the introduction of Southeast Asias first 300 mm laser semiconductor processing equipment in UTACs Singapore facility. The ESI laser processing system, which shipped during ESIs first fiscal quarter ended August 31, substantially increases production yields during wafer sorting.

"UTAC has set the tone in Southeast Asia by pioneering 300 mm wafer sorting services, and by being the first in the region to employ ESIs 300 mm laser processing equipment," said Mr. Lee Hoong Leong, Vice President of Operations at UTAC. We have been sorting 300 mm wafers since October for a major Asian wafer foundry. Wafer sorting strategically positions us as an important test service partner to wafer foundries which support 300 mm-bound fabless companies and integrated device manufacturers. With ongoing investments and research and development, UTAC plans to expand these partnerships by offering complete turnkey assembly and testing of a wide range of semiconductor processed 300 mm wafers."

UTACs Mr. Lee added, We selected ESIs 300 mm system based on their outstanding leadership in semiconductor laser processing technology. We are confident that ESI will give us industry-leading capability that meets the technology roadmaps of our customers."

300 mm laser processing capability is an important and necessary requirement for todays semiconductor manufacturers," said Tom Richardson, General Manager of semiconductor products at ESI. The throughput, accuracy and overall performance of our systems will help UTAC significantly improve production yields for its foundry customers, as it takes this major step towards supporting industry migration to the 300 mm platform."
ESIs laser semiconductor processing systems use a patented 1.3 micron wavelength laser to provide critical process window capability for metal memory link materials, allowing high levels of energy to be used to remove metal links without damaging the surrounding silicon. The result is cleaner link cuts with higher yields. ESIs laser systems provide high-accuracy positioning and continuous wafer processing.
Statements in this press release may include forward looking statements that involve a number of risks and uncertainties that could cause actual results to materially differ, either better or worse, from those discussed. Such risks and uncertainties are numerous and are identified in the ESIs Annual Reports on Form 10-K and interim reports on Form 10-Q.

About UTAC
United Test and Assembly Center Limited (UTAC") provides full turnkey solutions in assembly and testing of memory and mixed signal semiconductors. UTACs BM/W" strategy focuses on accelerating penetration into and expansion in the Broadband and Mobile/ Wireless communications industries. UTACs customer base comprises leading and emerging global designers and manufacturers of semiconductors that power computing, communication, and consumer electronic appliances. UTAC is headquartered in Singapore, and is supported by a global sales and marketing network in the Italy, Israel, Japan, and the United States. For further information, visit http://www.utac.com.sg.

About ESI
ESI, headquartered in Portland, Oregon, supplies high-value, high-technology manufacturing equipment to the global electronics market. Using its expertise in laser/material interaction, small parts handling, machine vision and real-time control systems, the company enables the production of leading-edge products for customers in the semiconductor, passive component and electronic interconnect markets. ESI's web site is www.esi.com.