SILTERRA REPORTS RECORD REVENUE IN SECOND QUARTER 2004
Sales Revenue Jumped 212% Year Over Year 

Kulim, Malaysia (July 23, 2004) – Silterra Malaysia Sdn. Bhd., a leading wafer foundry, today reported record sales revenue of US$47.8 million for the fiscal second quarter that ended June 26, 2004. The result represents a 212% increase over the same quarter a year ago and a 29% increase over the prior quarter.

“This has been an amazing year for Silterra. Our relentless effort to improve our financial and operational performance has resulted in the best quarter ever,” said Bruce Gray, chief operating officer and interim CEO of Silterra. “To put it in perspective, our revenue for the first half of this year has already surpassed the total revenue for the entire year of 2003.”

During the quarter, Silterra shipped a record number of wafers to customers while simultaneously improving the blended average selling price (ASP) per wafer by almost 10% on a year-over-year basis. In addition, the company has achieved positive EBITDA for the third consecutive quarter, further demonstrating its success in the marketplace.

Geographically, North America contributed the major share of the revenue at 73% and Asia accounted for 27%. Silterra expects that the revenue share for Asia will increase as the company continues to expand its customer base in the region. The company also anticipates its first European customers to initiate production ramps by the end of 2004.

“For the third quarter, we are seeing more challenging market conditions as we experience the industry’s typical seasonal summer slowdown,” added Bruce Gray. “In addition, bookings in some market segments, such as consumer products, have slowed a bit as the result of inventory build up during the first half of the year. Overall, 2004 should still be an excellent year for Silterra and for the semiconductor industry.”

Silterra has taken steps to strengthen its position in the foundry space by joining forces with IMEC, a leading nanoelectronics R&D consortium in Europe, to create a foundry standard 0.13-micron CMOS technology and it has ordered copper interconnect processing equipment from Applied Materials for its advanced technology production. Silterra’s 0.13-micron technology is scheduled for proto-typing in Q1 2005 and production in Q2 2005.


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.