Photronics, Inc. (Nasdaq:PLAB), a worldwide leader in supplying
innovative imaging technology solutions for the global electronics
industry, announced today that it has reached agreement with Micron
Technology, Inc. to enter into a new operating lease agreement for the
NanoFab and terminate its original capital lease agreement. Under the
terms of the agreement, quarterly lease payments will be reduced from
$3.8 million to $2.0 million, and the lease term will be extended from
December 31, 2012 to December 31, 2014. In connection therewith, the
outstanding debt and assets associated with the NanoFab will be reduced
by approximately $30 million.
"The new lease agreement is another important step toward improving
Photronics' balance sheet and cash flows," stated Constantine S.
Macricostas, Photronics' chairman and chief executive officer. "In
addition to reducing our debt this change demonstrates the strong
working relationship Photronics has with our joint venture partner,"
concluded Mr. Macricostas.
Photronics is a leading worldwide manufacturer of photomasks. Photomasks
are high precision quartz plates that contain microscopic images of
electronic circuits. A key element in the manufacture of semiconductors
and flat panel displays, photomasks are used to transfer circuit
patterns onto semiconductor wafers and flat panel substrates during the
fabrication of integrated circuits, a variety of flat panel displays
and, to a lesser extent, other types of electrical and optical
components. They are produced in accordance with product designs
provided by customers at strategically located manufacturing facilities
in Asia, Europe, and North America. Additional information on the
Company can be accessed at www.photronics.com.
The Private Securities Litigation Reform Act of 1995 provides a “safe
harbor” for forward-looking statements made by or on behalf of
Photronics, Inc. and its subsidiaries (the Company). The forward-looking
statements contained in this press release and other parts of
Photronics’ web site involve risks and uncertainties that may affect the
Company’s operations, markets, products, services, prices, and other
factors as discussed in filings with the U. S. Securities and Exchange
Commission (SEC). These risks and uncertainties include, but are not
limited to, economic, competitive, legal, governmental, and
technological factors. Accordingly, there is no assurance that the
Company’s expectations will be realized. The Company assumes no
obligation to provide revisions to any forward-looking statements.
08-2009
Photronics, Inc.
Scott J. Gish, 203-775-9000
Vice President
Corporate
Communications
sgish@photronics.com
