Genus Receives First ALD System Order for Advanced Logic Applications

SUNNYVALE, Calif. (December 21, 2000) – Genus, Inc. (Nasdaq: GGNS) announced it has received a purchase order for an atomic layer deposition (ALD) system from a major semiconductor manufacturer. The system will be used for the development of a variety of advanced dielectric-constant (high-K) structures in logic gate stack applications.

While it had been originally scheduled for delivery in the fourth quarter of 2000, a short delay in receiving parts will push the shipment into January of 2001. The company said that late deliveries of critical parts from suppliers did not allow the system to be fully tested prior to shipment.

Prior to this order, Genus had sold ALD systems primarily for memory applications. Genus now has sold ALD systems into Asia, Europe and the US. The ALD system will operate from Genus' proprietary LYNX2® single-wafer platform.

"This purchase order is significant as it marks our expansion into the semiconductor logic segment with Genus' ALD technologies," said Dr. William Elder, Genus chairman and chief executive officer. "It also supports our announcements earlier this year regarding our capabilities for production-level ALD tools. Genus has now booked ALD business in gate stacks for logic and capacitors for memory chips."

"Using ALD in advanced gate structures lowers the power requirements and increases the speed of high performance logic chips compared to previously used process technologies", commented Tom Seidel, Genus CTO. "Also, ALD is able to significantly reduce gate leakage. This factor has become increasingly important as we have migrated to smaller geometries, making ALD an enabling technology."

Safe Harbor

This press release contains statements that may be deemed forward-looking regarding the use of ALD technology by the semiconductor industry. Any such forward-looking statements are subject to a number of risks and uncertainties, including actual acceptance of ALD technology by the marketplace, potential development of competing technologies, cyclical economic conditions in the semiconductor equipment market, and global economic conditions. Additional associated risks and uncertainties are found in the Management's Discussion and Analysis of Results of Operations section of Genus' Annual Report on Form 10-K for the fiscal year ended December 1999 and in Genus' subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission.

About Genus

Founded in 1982, Genus, Inc. designs, manufactures, and markets capital equipment and deposition processes for advanced semiconductor manufacturing, as well as for other emerging non-semiconductor applications. Genus offers various thin-film deposition modules using its own production-proven equipment and processes for both chemical vapor deposition (CVD) and atomic layer deposition (ALD). The deposition processes are used to manufacture integrated circuits for the computer, communications, medical, military, transportation, and consumer electronics industries. Genus' customers include semiconductor manufacturers located throughout the United States, Europe, and the Pacific Rim, including Korea and Japan. Company headquarters are in Sunnyvale, California. For additional information, visit Genus' Web site at www.genus.com.