Wave Issue 0209 3/15/02 Article 3-01

***Tower Semiconductor Produces First 0.18 Micron Fab-2 Wafer Lot
On Schedule
(March 11)

Tower Semiconductor has successfully produced the first 0.18-
micron wafer lot from its Fab 2 pilot line with higher-than-
expected yields.

This production, which was completed on schedule, represents a
significant milestone in bringing Tower's new Fab 2 facility
online. It also validates both the equipment and technology
transfer from Toshiba Corporation and enables Tower to proceed
with its prototyping activities in preparation for manufacturing
0.18-micron products for its wafer partners and other new
customers.

Since breaking ground on Fab 2 just 13 months ago, Tower has
maintained its launch timetable. Most recently, the company
completed the installation of the first tool set on the Fab 2
pilot line in January 2002. In the weeks following, Tower has
tested and produced engineering prototypes on the line, using
Tower and Toshiba's front-end and back-end technology. Tower now
offers customers prototyping and intellectual property validation
utilizing its TowerShuttle service. This service enables multiple
customers to use the same mask-set in order to reduce the
prototyping cost.

www.towersemi.com