News Release

Fab Solutions Secures $6.7 million in Additional Funding from Its Investor Group

2003-46pc

KANAGAWA, Japan, October 14, 2003 – Fab Solutions, Inc., a provider of electron beam systems targeting the detection of non-visual defects, today announced that it has secured 725 million Yen (approximately $6.7 million US) in additional funding from its current investor group. The financing was led by The Carlyle Group, one of the world’s largest private equity firms, along with continued participation by JAFCO Co., Ltd and IT-Farm Corporation. The funds will be used for advancing the product development programs, accelerating the ongoing customer trials and expanding the operations to support the needs of the customers.


“We strongly believe in the market potential of Fab Solutions’ innovative technology and are excited about the improvement in the product as the company moves from the beta level to a commercial level capability,” said Kazuo Higashi, board member and managing director for The Carlyle Group. “Leading edge device manufacturers have shown great interest and acceptance of the company’s technology, and we expect Fab Solutions to make significant announcements regarding their initial success in the marketplace over the coming months.”


Fab Solutions revolutionary, patent-protected technology, offers semiconductor manufacturers the ability to detect non-visual defects that directly correlate to yield loss. The system uses well understood electron beam technology coupled with an advanced mechanism for detecting pico-level substrate current flows. The first application targets contact and via process layers through detection of changes in the film characteristics at the bottom of these high aspect ratio structures.


“This is an important milestone for Fab Solutions as we continue to demonstrate to our early customer opportunities the value that EB-Scope technology offers in detecting non-visual defects and thus, improving yields,” said Kuniaki Togasaki, president and chief executive officer of Fab Solutions. “We plan to use the proceeds of this funding round to continue refining and broadening our technology development programs and to accelerate the trial programs that we are working on with our partners and customers.”


About Fab Solutions


Fab Solutions (www.fabsol.com) was established in February 2002 as a spin-off from NEC and is headquartered in Kanagawa, Japan. The company markets an electron beam system (EB-Scope) enabling leading edge semiconductor device manufactures to detect non-visual defects that result in yield loss. The EB-Scope system offers a non-destructive, in-line methodology with the first application of this technology focuses on high aspect ratio contact and via structures.


About The Carlyle Group


The Carlyle Group (www.carlyle.com) is a global private equity firm with more than $16 billion under management. Carlyle generates extraordinary returns for its investors by employing a conservative, proven, and disciplined approach. Carlyle invests in buyouts, venture, real estate, high yield, and turnarounds in North America, Europe, and Asia, focusing on aerospace & defense, automotive, consumer & industrial, energy & power, healthcare, technology & business services, telecommunications & media, and transportation. Since 1987, the firm has invested $9.2 billion of equity in 295 transactions. The Carlyle Group employs more than 500 people in 12 countries.


About JAFCO


JAFCO (www.jafco.co.jp/eng/) is an industry leader in private equity investments with technology firms in all stages including semiconductor, communications and software markets. In business since 1973, JAFCO manages approximately 147.1 billion yen net value of funds as of March 31, 2003 and has offices located throughout the world. JAFCO offers its portfolio companies a wide range of management support services as well as a strong network for building business alliances and market opportunities in international markets.


About IT-Farm Corporation


IT-Farm (www.it-farm.com/english/e_index.html) is an early stage investment firm, with a special focus on funding seed round companies in the information technology and semiconductor markets. In business since 1999, IT-Farm has approximately 44.5 million yen of funds under management across two investment funds. With headquarters in Shinjuku, Tokyo, the company offers its portfolio companies with early stage funding, executive direction and support in building key relationships for business success.


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