Electroglas, Wright Williams & Kelly to Develop the IC Industry's First Real-time System for Monitoring Equipment Cost and Utilization


Constant monitoring of equipment performance will lead to immediate gains in productivity and enable fabs to more accurately model future manufacturing processes

SAN JOSE, CALIF. - May 23, 2001 - Electroglas, Inc. (NASDAQ: EGLS), a leading supplier of process management tools for the semiconductor industry, announced today that it has signed a definitive agreement with Wright Williams & Kelly (WWK) to jointly develop a real-time system for monitoring equipment performance utilizing the Statware tool set Electroglas acquired in January. The resulting system will help fabs effectively manage and model manufacturing processes by identifying cost drivers and the cost impact of capital equipment purchases, alternative processes, and overall equipment efficiency (OEE) improvements. WWK is the developer of the semiconductor industry‚s standard for cost of ownership (COO) and OEE software, TWO COOL®. Development plans call for the integration of WWK's TWO COOL® product with Electroglas' SORTnet® products for probers and the Statware Web-based tool for process optimization analysis and reporting.

"We are very excited about this partnership with Electroglas," said David W. Jimenez, WWK's president. "COO and OEE have had significant impacts on the semiconductor and other high tech industries for the past decade. However, the focus has been on early analysis and not constant monitoring of performance. This new approach will provide real-time feedback of cost and utilization parameters just like any other statistical process control area of interest. The long term benefit to the industry in cost reduction and productivity optimization will be huge."

According to Electroglass director of strategic software marketing, Howard Ignatius, "The Electroglas vision of a data-centric approach to process management is characterized by this breakthrough improvement in equipment performance monitoring. Through the integration of WWK's COO and OEE capabilities and our toolset - wafer probers, optical wafer inspection products, networking software and yield management solutions - we can offer access to and analysis of the information generated at each process step to allow IC manufacturers to pinpoint what is possible in terms of cost containment, efficiency and yield."

Tom Simas, Electroglas' strategic business manager for the Statware products, added, "A state-of-the-art fab has a denser capital per square foot than any industry. The ability to effectively identify cost drivers and manage cost reductions in real-time, will separate the "haves" from the "have-nots." WWK's comprehensive set of COO and OEE analysis tools, together with Electroglas' Web-based business intelligence tools provide unparalleled functionality and benefit to the IC manufacturer. We are extremely pleased with our exclusive arrangement with WWK. Together, we believe our impact on the industry will be tremendous."

About the Technology
TWO COOL® is the first software to comply with Semiconductor Equipment and Materials International's (SEMI) Standards E35, E79, and E10. These standards are the semiconductor industry's guidelines on the construction and use of COO, OEE, and equipment reliability metrics. COO is a key metric in the semiconductor industry because it provides a means to model future semiconductor manufacturing processes before companies invest in new fabs, fab refurbishment, or technology migration. The International Technology Roadmap for Semiconductors (ITRS), additionally, has called for increasing OEE as a primary factor in improving the cost of semiconductors and maintaining the impact of Moore's Law on the growth of the industry.

SORTnet® is a Web-based data acquisition, analysis, reporting, and process control system for the sort floor. SORTnet® automates process control, yield enhancement and equipment utilization to maximize the return from existing equipment and resources.

Statware products combine statistical quality analysis and reporting capabilities with Web technology to deliver a process optimization system that enables enterprise-wide participation in monitoring, analysis, and improvement of critical processes.


About Electroglas, Inc.
Electroglas delivers essential tools for process management to enhance the profitability of semiconductor manufacturers. The company's wafer probers, inspection systems and software solutions serve as data collection, management and analysis tools that semiconductor manufacturers depend upon to improve their productivity and process control by optimizing sort-floor efficiency. Electroglas has been a leading supplier of wafer probers for over 35 years and has an installed base of more than 15,000 systems. The company‚s stock trades on the NASDAQ National Market under the symbol "EGLS". The company‚s World Wide Web site is located at www.electroglas.com.

About Statware
Electroglas, Inc. acquired Statware, Inc., in 2001. Originally founded in 1983, Statware is the leading developer of process optimization software technologies for manufacturing industries. Statware provides products that assist users in understanding and managing processes and their outcomes for optimal quality, consumer satisfaction, and cost containment. In 1997, Statware transformed its vision for developing process optimization software applications by focusing on Internet technologies. Building on a decade of development in statistical quality control, Statware has created a new model for empowering the enterprise through its web-based applications for total and continuous quality improvement. For more information, visit www.statware.com.

SORTnet is a registered trademark of Electroglas, Inc. TWO COOL is a registered trademark of Wright Williams & Kelly. Other trademarks are property of their respective holders.


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