May 11, 2001 – Chandler, AZ – SpeedFam-IPEC Inc. will reduce its worldwide headcount by 12%, or approximately 120 employees, as part of its continued focus on reducing operating costs during the semiconductor industry downturn.

On March 1, the company had announced a cost-savings plan that included an 18% reduction in workforce, a 10% salary cutback for executives, the deferment of management raises until business conditions improve, and a decrease in overall discretionary spending. In addition to the reduction in workforce, the company has implemented the following temporary cost-saving measures: a cumulative 20% and 15% salary cutback for the president and CEO, and the executive management team, respectively, as well as a salary cut-back ranging from 5% to 10% for mid- to upper-level employees. These temporary measures will be evaluated quarterly.

“In response to the sharp industry-wide downturn, we began implementing significant cost-savings measures in our third fiscal quarter. However, due to the severity and anticipated duration of this downturn, we felt it prudent to take further measures at this time,” said Richard Faubert, president and CEO of SpeedFam-IPEC. “Although we are taking aggressive actions to reduce our operating expenses, we will maintain significant investments in key R&D programs for technologies such as 300mm wafer production, 0.13-micron geometries, low-k dielectrics and copper interconnects.”