March 14, 2006 – Ibis Technology Corp. said that Sumitomo Mitsubishi Silicon Corp. (SUMCO), the world’s no. 2 supplier of silicon wafers, has accepted Ibis’ i2000 oxygen implanter, originally ordered in January 2005 and shipped in June, and will record $6 million in its current fiscal quarter.

Final acceptance had been delayed to achieve higher performance standards than factory acceptance in Ibis’ Danvers, MA factory, an achievement that nonetheless helps future product quality, noted Ibis president and CEO Martin Reid. Also, he pointed to a mechanical fault in a pressure sensor just before final qualification runs which has now been repaired.

A second tool ordered by SUMCO in October is now being prepared for factory acceptance testing, with final customer acceptance anticipated in 2H06 and subsequent revenue recognition of about $7 million.