March 27, 2003 – Northfield, IL – The downturn in semiconductors forced a 20% overall drop in the ultrapure water system market in 2001 over 2000. However growth in pharmaceutical and coal-fired power segments will help push the market past the 2000 peak of $2 billion by 2004. In Ultrapure Water: World Markets published by the McIlvaine Co. the world forecast for 2004 is $2.2 billion for systems and materials. The 2005 market will be $2.4 billion and then jump to $2.8 billion in 2006.

Ultrapure water is required to generate steam in power plants, to wash chips in the semiconductor industry, and to mix with drugs injected into the human body. Worldwide the semiconductor segment was more than 50% of the total market in 2000. However in recent years this segment has contributed only 40% of the revenue. Steady growths in both power and pharmaceuticals have caused the market to rebound from the 2001 lows. By 2006 recovery in the semiconductor industry, strong growth in flat panel display facilities, and the transformation from laboratory to full scale production in nanotechnology will provide powerful new growth factors to the ultrapure water segment.

Revenues for ultrapure water instruments and controls will rise to over $300 million/yr. by 2006 up from $225 million in 2000. Reverse osmosis system purchases will rise to $274 million in 2006 up from $212 million in 2000. However along the way they will have dipped to a low of $159 million in
2001.

China, Taiwan, and Korea represent the fastest growing geographical segments of the market. Japan formerly was a much bigger market than the rest of Asia combined. This year ultrapure water hardware purchases in China, Taiwan, and Korea will exceed those in Japan. The US will remain the largest geographical market in this decade. While it has fallen far behind in the flat panel sector, it is still the leader in semiconductors and pharmaceuticals and will therefore maintain its lead.