Genus Unveils StrataGem(TM) Industry's First Production-Ready 300 mm ALD Tool

Single-Wafer ALD Ready for 300 mm DRAM Volume Production as Traditional Technologies Reach Limitations

SUNNYVALE, Calif., July 23, 2002 -- Atomic layer deposition (ALD) market leader Genus, Inc. (Nasdaq: GGNS ) further reinforced its leadership in ALD today by unveiling StrataGem, the industry's first production-worthy ALD tool specifically designed for 300mm semiconductor volume production. Announced during the 2002 SEMICON West trade show in San Francisco, the new product line highlights major advancements in film thickness, uniformity and conformality required to take ALD out of research and development laboratories into 300 mm volume production. The single-wafer cluster system is capable of throughput exceeding 50 wafers per hour.

StrataGem has been modified extensively to optimize Genus' patented ALD process for 300 mm volume production. Notably, the tool features a redesigned pre-cursor delivery to increase throughput efficiency to meet 300mm volume production requirements. Additional new features include an integrated chamber cleaning process, in-situ testing and numerous software enhancements geared toward production optimization.

"There are several major milestones for all ALD companies to meet as they attempt to move to commercialization, and at Genus we are pleased to be the first to offer the industry, and in particular our DRAM customers, the first true production ready system with unparalleled specifications that will boost customer profitability," said Genus' CEO Bill Elder. "StrataGem is another industry milestone that secures our technology leadership, particularly in DRAM, to capitalize on this market opportunity."

At Semicon Europa earlier this year, Genus presented the industry's first ALD roadmap. Targeting the DRAM process as the first to adopt ALD, the roadmap highlighted current technologies, like batch furnaces, which are unable to meet thin-film demands associated with today's smaller production geometries.

"Thin films deposited by ALD not only offer tighter control on thin-film uniformity and conformality, but also offer the high-K films required in DRAM manufacturing that traditional furnace techniques are simply unable to deliver," stated Tom Seidel, Genus' CTO. "We now have a tool that also meets the throughput, cleaning and in-situ testing criteria required to go into volume production, in addition to film maturity. Put all these factors together, ALD is extremely well positioned against a technology that is simply running out of steam."

About ALD
Both the semiconductor and data storage industries continue to migrate toward products with higher density and higher topology. As a result, conformality of deposited films has also become a critical factor. With current technology unable to meet the degree of conformality required to manufacture today's leading-edge technology, the use of Genus' ALD technology in the data storage market has been adopted. ALD enables manufacturers to extend current semiconductor and data storage manufacturing processes by offering greater deposition conformality in smaller feature components with higher aspect ratios.

About Genus
Genus, Inc. manufactures critical deposition processing products for both the global semiconductor and data storage industries. To enable the production of intricate micro computer chips and electronic storage devices, Genus offers its LYNX series production-proven equipment for 200 mm and 300 mm semiconductor production. They also offer thin film deposition products for chemical vapor deposition (CVD), atomic layer deposition (ALD), and pre-clean capabilities.

Genus is at the forefront of market and technology developments in the ALD marketplace, which is gaining acceptance worldwide as a critical technology for sub 0.13-micron production of computer chips and electronic storage devices. Genus' customers include semiconductor manufacturers located throughout the United States, Europe and the Pacific Rim including Korea, Japan and Taiwan. Founded in 1981, the company is headquartered in Sunnyvale, California. For additional information visit Genus' web site at www.genus.com.

Note: LYNX2® and LYNX3(TM) are trademarks of Genus, Inc.

Forward-Looking Statements
This press release contains forward-looking statements regarding the company's future financial and business performance. These forward-looking statements are subject to a number of risks and uncertainties. These contingencies include but are not limited to: actual customer orders received by the company, the extent to which ALD technology is demanded by the marketplace, the actual number of customer orders received by the company, the timing of final acceptance of products by customers, the financial climate and accessibility to financing, general conditions in the thin film equipment market and in the macro-economy, and the influence of global political events. Genus assumes no obligation to update this information. Additional risks and uncertainties are discussed in the Management's Discussion and Analysis of Results of Operations contained in Genus' Annual Report on Form 10-K for the fiscal year ended December 31, 2001 and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission.