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Investor Contact: Frank Emery (Watkins-Johnson) 650-813-2752
For release after 2 p.m., Pacific Standard Time, March 31, 1999
WATKINS-JOHNSON SELLS HIGH-DENSITY PLASMA CHEMICAL VAPOR
DEPOSITION INTELLECTUAL PROPERTY AND ASSOCIATED HARDWARE
TO APPLIED MATERIALS
PALO ALTO, Calif., March 31, 1999 - WJ Semiconductor Equipment Group, Inc., a
wholly owned subsidiary of Watkins-Johnson Company (NYSE: WJ), announced today
that it has completed the sale of its high-density plasma chemical vapor
deposition (HDPCVD) intellectual property assets plus associated inventory and
hardware to Applied Materials, Inc. (NASDAQ: AMAT). This sale will result in a
second-quarter pre-tax gain of $9 million.
"This transaction underscores our commitment, announced on March 1, to pursue
the sale of the company in its entirety or as separate businesses to maximize
value for our shareowners," said W. Keith Kennedy, president and chief executive
officer of Watkins-Johnson Company. Kennedy also noted that earlier this month
WJ announced a non-binding letter of intent regarding the sale of most of its
Semiconductor Equipment Group (SEG) to Silicon Valley Group (NASDAQ: SVGI). The
HDPCVD assets, a part of SEG, had been excluded from that letter of intent in
order to permit WJ to pursue the sale of these assets separately.
Applied Materials, Inc. is a Fortune 500 global growth company and the world's
largest supplier of wafer fabrication systems and services to the global
semiconductor industry. Applied Materials' web site is www.appliedmaterials.com.
Watkins-Johnson Company specializes in two high-technology business areas. WJ's
wireless-communications units produce radio-frequency components, subassemblies
and equipment for fixed and mobile networks worldwide. The company's
Semiconductor Equipment Group produces atmospheric pressure chemical vapor
deposition systems for high-volume integrated-circuit manufacturing. For more
information, visit http://www.wj.com.
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Forward-looking Statements
This news release, other than the historical information, contains
forward-looking statements that involve risks and uncertainties, which include
the risks of consummation of the sale of the company or its component
businesses, the assurance of executing and closing a definitive agreement to
sell SEG's APCVD business, and the other risks detailed in the company's SEC
reports, including the report on Form 10-K for the year ended December 31, 1998.
Actual results may vary materially.
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