October 25, 2006 – PDF Solutions Inc. has acquired Si Automation SA (SIA), a privately held developer of fault detection and classification software, for $35.7 million in cash and stock.

Combining SIA’s Maestria and Datapower with PDF’s silicon characterization infrastructure will help companies utilize equipment data to identify and anticipate sources of yield loss, the companies said. PDF Solutions also will continue to sell Maestria software as a standalone product.

Under terms of the deal, PDF Solutions will pay approximately $26.6 million in cash and 715,000 shares of its common stock, based upon the $12.68/share closing price on Oct. 24, and is valued at approximately $30.4 million net of expected net cash-on-hand at SIA.

“By integrating FDC software with the yield resolution provided by PDF Solutions’ short flow CVs, we are creating a new era in process control software that will unleash the full power of using equipment data for variability reduction and excursion control,” stated John Kibarian, CEO of PDF Solutions.

“By joining with an industry leader, we are accelerating our ability to launch the next era of yield aware process control,” added Richard Mousties, president and founder of SIA. The company touts a customer roster including “a majority” of the top 20 semiconductor manufacturers worldwide.