Tegal’s 6500 Advanced Etch system is used to fabricate MEMS devices. (Photo: Tegal Corp.)

November 9, 2007 — Tegal Corp. (Nasdaq: TGAL), which designs and manufactures plasma etch and deposition systems used in the production of integrated circuits and nanotechnology devices, has announced a net income of $693,000 in the second quarter compared to a net loss of $3.3 million in the same period last year and a loss of $639,000 in the previous quarter.

“We are pleased to report our first quarterly profit since December 2000, a very significant milestone,” said Thomas Mika, Tegal’s president and chief executive. “We have made substantial progress in the strategic re-engineering of our business, improving our overall cost structure and delivering sales growth, while continuing to work towards driving new product introductions.”

In addition, Tegal announced that it has received an order for a second Tegal 6500 Advanced Etch cluster tool from Skyworks Solutions Inc.

The system will be shipped to Skyworks’ fab in Southern California, where it will join the Tegal 6500 system already in place for etching SiN and other critical thin films on GaAs substrates.

This repeat 6500 tool order supports Skyworks’ business expansion in the multimode and multimedia handset market, where Skyworks supports many of today’s leading handset manufacturers including LG, Motorola, Nokia, Samsung and Sony Ericsson.

The Tegal 6500 etch system is a high-vacuum cluster tool used in production fabs to etch a variety of thin films in an extremely clean process environment. Tegal 6500 Series tools are widely used in compound semiconductor, opto-electronic, non-volatile memory, and analog and power device fabrication, and in the fabrication of MEMS devices.