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AMD & Silicon-on-Insulator (SOI) News - 01/17/05

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Soitec Signs Multi-Year Agreement With AMD for the Supply of UNIBOND Soi Wafers

More Than $50 Million Total Order Projected for 2005 Alone

BERNIN, France, January 17 - The Soitec Group (Euronext, Paris: SOI) today announced the signing of an agreement with AMD for a long-term supply of UNIBOND
silicon-on-insulator (SOI) wafers. Under the terms of the multi-year agreement, projected to total more than $50 million for 2005 alone, Soitec will supply AMD with both 200- and 300-mm SOI wafers, manufactured using Soitec's proprietary Smart Cut(TM) process. Soitec, the world's leading supplier of SOI and other engineered substrates, has been supplying AMD with volume quantities of thin-film UNIBOND SOI substrate solutions for the production of their most advanced microprocessors.

"We are extremely pleased with this follow-on order from our long-time customer, AMD," said Andre Auberton-Herve, president and CEO of the Soitec Group.  "It reaffirms a mutual commitment to our relationship, as well as AMD's continuing recognition and confidence in Soitec's high-quality
SOI material for volume  production in both 200- and 300-mm wafer sizes.  This order also further validates our decision to invest in 300-mm manufacturing during the last industry downturn, as it has strategically positioned Soitec to deliver the on-demand capacity needed to support our growing customer needs."

About the Soitec Group

The Soitec Group is the world's leading innovator and provider of the engineered substrates that serve as the foundation for today's most advanced electronic products and nanotechnologies.  Headquartered in Bernin, France, the company's comprehensive portfolio of engineered substrates, including
SOI and strained SOI, is manufactured using Soitec's proprietary Smart Cut technology-the de facto industry standard.  With its strong global presence, patented technology and industry-leading production capacity, Soitec is helping to drive the performance and power advantages that are key to the smaller, more power-efficient, and increasingly mobile electronic products favored by consumers worldwide. Both shares and two convertible bonds are listed on the Nouveau Marchi of Euronext Paris.

NOTE:  UNIBOND and Smart Cut are trademarks of SOITEC Silicon On Insulator Technologies.

"SOI technology improves performance over bulk CMOS technology by 25 to 35%, equivalent to two years of bulk CMOS advances. SOI technology also brings power use advantages of 1.7 to 3 times"
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