CHA Industries Awarded Development Contract With U.S. Display Consortium

FREMONT, Calif., April 13, 2000- CHA Industries, pioneer and leader of high vacuum deposition systems, today announced the company has been awarded a multi-million dollar contract with the United States Display Consortium (USDC) to build a web coating deposition tool.

"My sincere congratulations go to CHA Industries on the award from the U.S. Display Consortium", declared Senator Diane Feinstein (D-CA). "The contract award is particularly encouraging in that it attests to California's leadership in the field of displays and that we are continuing the development of more advanced, efficient ways of manufacturing such displays."

CHA Industries will develop a roll coater for depositing the materials required to fabricate thin film transistors (TFTs) on plastic webs. In addition, this tool will also be utilized for the examination of OLED film deposition on webs. "We're pleased to continue our involvement in the flat panel display (FPD) industry through our partnership with the USDC", stated Richard Roth, president of CHA Industries. "Our delivery of such a new, application-specific web roll coating system represents a significant advance in FPD technology."

CHA Industries Awarded USDC Development Contract 2/2 USDC member companies were involved in the selection process and identified CHA Industries as a uniquely qualified semiconductor tool manufacturing firm with an established track record and reputation for material purity and low defect densities.

"CHA was the top candidate of companies involved in the manufacture of roll-to- roll tools", declared Paul Wickboldt of the USDC selection committee. "CHA's ability to continually advance technology and deliver high precision products were key factors in their selection. Equipment of the type being developed by CHA in roll-to-roll manufacture may revolutionize display manufacture, delivering much improved product capabilities at a fraction of the cost."

Flat panel displays are now integral components of military systems ranging from fighter aircraft to submarines.

"Our award to CHA marks our first ever award for a prototype manufacturing tool", affirmed Bob Pinnel, Chief Technical Officer of the USDC. "This tool program represents a big step forward in developing an understanding of the issues and requirements for the eventual manufacture of flexible displays."

About U.S. Display Consortium
The USDC is an industry-led, public-private partnership providing a common platform for flat-panel display manufacturers, developers, users, and the manufacturing equipment and supplier base. Headquartered in San Jose, CA, the consortium has more than 100 corporate and affiliated members, as well as the support from the US government's Defense Advanced Research Projects Agency (DARPA). USDC's mission is to establish and enlarge the U.S. supplier infrastructure required to support a world- class, U.S.-based manufacturing capability for high definition displays.

About CHA Industries
Founded in 1954, CHA Industries today is a privately held company that manufactures high vacuum deposition systems for domestic and international process industries. Headquartered in Fremont, Calif., CHA has become an industry leader, with sales through domestic and international representatives, in such applications as semiconductor manufacturing, optical coating, magnetic media, glass, metal and other industrial materials. Products include electron beam evaporation systems, sputtering systems, roll (web) coating systems and associated equipment for precision coating.

CHA Industries, 4201 Business Center Drive, Fremont, CA 94538-6357. Tel: 510-683-8554; Fax: 510-683-3848.