SILTERRA ACHIEVES RECORD REVENUE IN Q1 2004
Company Sees Strong Demand Through 2005

Kulim, Malaysia (April 26, 2004) - Silterra Malaysia Sdn. Bhd., a leading wafer foundry, announced today that it has achieved record sales revenue of US$37 million in the first quarter of 2004. The revenue was up 111 percent over the same period a year ago and up 15 percent sequentially over the fourth quarter of 2003. The company expects an equally strong second quarter and an overall robust year in 2004. 

"We have seen a phenomenal surge in demand since last September. Booking activities have been exceptionally strong," said Ahmad Pardas Senin, executive director for Silterra. "Our fab is running at full capacity to keep up with customer demand while maintaining a short cycle time. We are optimistic that this will be a very good year for Silterra and that the growth will continue well into 2005."

Silterra has had healthy revenue growth since its production fab began operation in 2001, growing 68% and 36% in 2002 and 2003, respectively, amid the worst downturn in the history of the industry. Results of the first quarter set the stage for another record-breaking year for the company.

"We have strengthen our management team and improved operational efficiency since Q2 of last year," added Ahmad Pardas Senin. "We have met all of our financial and operations goals since then and became EBITDA positive for two consecutive quarters. Our goal is to become the preferred wafer foundry to our customers. We are reaping the benefits of the improvements we have made and the diligent execution of our employees. Of course, the strong semiconductor recovery helps, too. It is good to have a tail wind to work with for a change."

Silterra plans to increase production capacity by 35% to 29,000 wafer starts per month before the end of the year. More capacity will be added at the appropriate time if business stays as strong as forecasted. 


About Silterra Malaysia Sdn. Bhd.:

Silterra Malaysia Sdn. Bhd. is a leading semiconductor wafer foundry that provides advanced foundry standard CMOS logic, high-voltage and mixed-signal/RF technologies. The company’s wafer fab has a designed capacity of 38,000 eight-inch wafers per month. Silterra, which is committed to world-class service and environmental friendliness, received Notable Mention in the Malaysian Prime Minister’s Hibiscus Award competition for Environmental Performance in 2003. The company is ISO 9001:2000 and ISO 14001 certified. Silterra’s headquarters and factory are located in Kulim, Malaysia, and has offices in San Jose (California), Scottsdale (Arizona), Hsinchu (Taiwan) and Munich (Germany). For additional information on Silterra or its services, please visit www.silterra.com.