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Tegal has sold its legacy thin film etch and physical vapor deposition (PVD) product lines to OEM Group for aggregate consideration of up to US$3 million, of which a US$1 million is subject to OEM Group’s achievement of certain target sales levels. Tegal has previously stated its move to sell non-core activities and indeed offer the company for sale.

“We are honored to continue providing Tegal’s world class Thin Film Etch solutions to the market; and, with the addition of the Sputtered Films technologies to our own PVD focus, we believe we will have an unmatched product offering,” said Wayne Jeveli, President of OEM Group. “Over the course of more than 30 years, Tegal’s brand has symbolized innovation, quality and customer focus. We believe these attributes will continue on for many years at OEM Group.”

Tegal’s 900ACS, 980ACS, 6500 HRe- and 6500 Spectraseries Thin Film Etch products, along with the Sputtered Films Endeavor and AMS PVD series products, intellectual property and process know-how will now be offered by OEM Group.

Tegal will still sell and support its range of Deep Reactive Ion Etch (DRIE) systems that it acquired from Alcatel Micro Machining Systems (AMMS) in September, 2008.

Thomas Mika, President and CEO, Tegal Corporation said, “We are pleased that we have been able to place these products and many of the skilled employees associated with them in a company whose business model is built on the continued sales, service and support of late life cycle technology into new and existing customers and markets.”