November 2, 2001 – Chandler, AZ – SpeedFam-IPEC Inc. has announced cost-cutting measures that include decreases in discretionary spending and a reduction in worldwide headcount by 20%, or approximately 160 employees, as part of its continued commitment to reducing operating costs.

“As 2001 comes to a close, SpeedFam-IPEC has seen demand evaporate across broad sectors of electronic equipment markets,” said Richard Faubert, president and CEO of SpeedFam-IPEC. “Without an improvement in the global economic climate, or increased component or hardware demand, there is no recovery predicted for the industry in the immediate future. As a result, our customers are deferring purchases of capital equipment and are placing additional projects on hold.”

SpeedFam-IPEC is implementing further cost controls in order to scale operations and headcount in accordance with projected business levels during a protracted downturn, he added.

“Despite the uncertain business climate, we continue to reach new technology and productivity milestones in the introduction of our orbital hard-platen Momentum products. During the past few months, we have placed more than 10 Momentum-based systems at device manufacturers in the US, Asia and Europe. Industry response to Momentum’s total wafer metrics control benefits has been positive. In addition, we continue to streamline our operating procedures in order to create a more efficient and focused company. We are confident that the combination of our technology and our operational efficiencies will position us for success at the next upturn,” Faubert concluded.