August 29,2001 – Newport Beach, CA and Jupiter, FL- Conexant Systems Inc., and Photronics Inc., announced a strategic technology alliance and multi-year supply agreement under which Photronics will become the primary supplier of photomasks to Conexant, providing the company with access to advanced photomask process technologies and services.

Separately, the two companies also announced the signing of a definitive agreement under which Photronics will purchase manufacturing assets relating to the photomask operations of Conexant. Photomasks, also referred to as reticles, are high-precision quartz plates containing microscopic images of electronic circuits, and are an enabling technology in the fabrication of high-performance semiconductors.

Financial terms of the agreements were not disclosed. The manufacturing asset agreement is subject to customary closing conditions.

“We have enjoyed an outstanding, long-term relationship with Photronics. They will be an excellent source for our photomask requirements,” said Kevin Barber, senior VP of operations for Conexant. “This alliance will also enable us to concentrate our internal resources on strategic design and development activities for the personal networking and Internet infrastructure markets.”

Photronics will expand its support for Conexant’s current external photomask customers, as well as provide full-time, onsite personnel at Conexant’s Newport Beach wafer fabrication facility to coordinate Conexant’s global photomask applications activities and data transfer functions.

As a part of the strategic technology alliance and supply agreement, Photronics will provide photomask products and services for both Conexant’s Newport Beach and Newbury Park wafer manufacturing operations, including Conexant’s leading-edge 0.13-micron and below requirements using Photronic’s proprietary Sub-Wavelength Reticle Solutions. Photronics and Conexant will also share product development roadmaps to meet accelerating technology requirements going forward.