Rudolph Purchases Selected Assets from Tamar Technology

FLANDERS, NJ -- Rudolph Technologies, Inc. (NASDAQ: RTEC), a leading provider of process characterization, photolithography equipment and software for the semiconductor, FPD, LED and solar industries, announced that it has purchased selected assets, including a strong patent portfolio, relating to metrology capability from Tamar Technology, Newbury Park, CA. The addition of Tamar's advanced metrology technologies to Rudolph's existing inspection and metrology systems will allow the company to address the emerging need for fast, precise three-dimensional (3D) measurement capabilities in the rapidly-growing advanced packaging market sector.

Michael Jost, vice president and general manager of Rudolph's Inspection Business Unit, noted, "The purchase of these assets adds new capabilities to our technology portfolio, which addresses an emerging need for 3D measurements to control copper pillar bumping in advanced packaging processes. Tamar's unique technology is already well known and widely used. Integrating it into our NSX and F30 inspection and metrology platforms adds critical capability and value to an established and reliable tool set. Several customers brought this exclusive technology to our attention; and it was readily apparent that the acquisition of these assets would significantly enhance the breadth of our advanced packaging solutions. In addition, this purchase gives Rudolph a significant patent portfolio that we plan to fully leverage. The integration work is essentially complete and we expect to receive initial system orders in the coming months."

David Grant, Tamar Technology's president, commented, "We are pleased to be joining forces with an industry leader like Rudolph. Our technology is well recognized and already in use at a number of major manufacturers. This agreement with Rudolph integrates our technology into an advanced platform from a trusted supplier that meets our customers' needs for throughput and process integration in high-volume production."

Jost added, "This acquisition aligns fully with our declared strategy to leverage our front-end and back-end expertise in the burgeoning market for advanced packaging process control. Copper pillar bumping for flip-chips has been forecast to grow at a 35 percent CAGR from 2010 to 2018. While copper pillar bumping processes are the most significant immediate application, Tamar's technology portfolio provides uniquely capable critical measurements required in several advanced packaging applications. For example, one application uses infrared light to measure TSV depth from the backside of the wafer, thus avoiding the limitations on via aspect ratio encountered by most frontside measurement approaches. We expect the addition of these unique and proprietary capabilities to positively influence both unit volume and margins while helping Rudolph to maintain our #1 market share position in this rapidly growing sector."

Terms of the transaction were not disclosed. However, the Company noted that the asset purchase agreement includes an earn-out contingency that, if met, would bring the total transaction value to approximately $10 million. The company also noted that it expects the transaction to be accretive to earnings within the first 12 months.

About Tamar Technology
Tamar Technology, based in Newbury Park, California, is a precision metrology company specializing in systems for the semiconductor, hard disk drive and medical device industries.

About Rudolph Technologies
Rudolph Technologies, Inc. is a worldwide leader in the design, development, manufacture and support of defect inspection, advanced packaging lithography, process control metrology, and data analysis systems and software used by semiconductor device manufacturers worldwide. Rudolph provides a full-fab solution through its families of proprietary products that provide critical yield-enhancing information, enabling microelectronic device manufacturers to drive down the costs and time to market of their products. The Company's expanding portfolio of equipment and software solutions is used in both the wafer processing and final manufacturing of ICs, and in adjacent markets such as FPD, LED and Solar. Headquartered in Flanders, New Jersey, Rudolph supports its customers with a worldwide sales and service organization.