News | April 4, 2007

Cascade Microtech Acquires Socket Product Manufacturer Gryphics, Inc.

Beaverton, OR -- Cascade Microtech announced it has acquired Gryphics, Inc., a private company that designs, manufactures and markets a range of high performance socket products used for final production and evaluation testing of packaged semiconductor integrated circuits.

It is estimated that Gryphics has a servable production test consumable market of approximately $250 million per year in 2007 out of a total test socket market of approximately $600 million per year. There is increased demand for newer socket designs to support higher speed ICs. Gryphics is targeting this trend by supporting wireless, high speed digital, and complex IC's such as microprocessors and graphics chips as well as other types of sockets.

"Gryphics' success to date in the socket market is based on its track record of innovative, high-performance solutions combined with outstanding technical support. With our technical capabilities, market access and global footprint we believe we can continue to accelerate the adoption of Graphics' products in the market place," said Eric Strid, CEO of Cascade Microtech. "This acquisition will allow us to expand our test consumables revenue, a market that is much less volatile than semiconductor production capacity equipment."

Cascade acquired all of the outstanding capital stock of Gryphics for approximately 843,000 shares of Cascade common stock and cash of $13.7 million, subject to a post-closing purchase price adjustment. Cascade expects the acquisition to be accretive by the end of 2007. Gryphics revenue for 2006 was $7.7 million and it was profitable.

D.A. Davidson & Co. acted as exclusive strategic and financial advisor to Cascade in this transaction and provided a fairness opinion to Cascade's Board of Directors.

SOURCE: Cascade Microtech, Inc.

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