Photronics acquires majority equity stake in PKL C.., Ltd.

Aug. 31, 2001--Photronics, Inc., a sub-wavelength reticle solutions supplier, announced it has acquired a controlling equity interest in PKL Co., Ltd., a supplier of photomasks in Korea.

Photronics, Inc. (Nasdaq: PLAB), a sub-wavelength reticle solutions supplier, announced it has acquired a controlling equity interest in PKL Co., Ltd. (PKL), a supplier of photomasks in Korea. The additional equity is being acquired through negotiated transactions with several large shareholders, and will bring its total ownership of the company to approximately 51 percent and its total investment in PKL to $50 million.

In the future, the Company may acquire up to an additional one million PKL shares held by such shareholders, subject to certain conditions contained in agreements with such selling shareholders. As a result of a previous tender offer for 300,000 shares, Photronics had increased its ownership in PKL to 34 percent in July. PKL (Kosdaq: PKL) reported sales of 53 billion Korean Won (approximately $40 million) in its most recent fiscal year, which represented a 52 percent year-over-year increase. Additional financial terms were not disclosed.

On August 29, 2001, Photronics and Conexant Systems, Inc. (Nasdaq: CNXT) jointly announced that the two companies signed a multi-year supply agreement and entered into a strategic technology alliance, as well as separately announcing that Photronics would purchase manufacturing assets relating to Conexant's photomask operations.

About Photronics:

Photronics is a manufacturer of photomasks. For more information, visit www.photronics.com.

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