Electroglas has sold its Design for Manufacturing (DFM) and Fab Solutions software product lines to FEI for $6mn in cash plus the assumption of certain liabilities. The product lines include Electroglas' Yield Manager and Merlin's Framework products.

Electroglas has sold its Design for Manufacturing (DFM) and Fab Solutions
software product lines to FEI for $6mn in cash plus the assumption of
certain liabilities. The product lines include Electroglas' Yield Manager
and Merlin's Framework products. FEI will found a new division that will be
staffed, in part, by existing Electroglas' DFM and Fab Solutions employees.

Curt Wozniak, chairman and CEO of Electroglas, explains the sale: "Earlier
this year, we set out to narrow our focus, concentrating on delivering
advanced wafer probers and extending our wafer probing technologies to drive
equipment and process efficiencies throughout the back-end."

As part of the purchase, FEI will assume control of Electroglas' DFM and Fab
Solutions engineering operations in Mumbai, India. Electroglas will work
closely with FEI to provide a seamless transition and continued support for
customers who are currently using the DFM and Fab Solutions products.
Vahe' Sarkissian, chairman, president and CEO of FEI, comments:
"Electroglas' highly popular Merlin's Framework CAD navigation software will
greatly enhance FEI's suite of solutions for circuit edit and support our
design to yield strategy."

The Electroglas' software division was based on software obtained in its
takeover of Knights Technology. Merlin's Framework optimises the equipment
and personnel resources of design and failure analysis labs by providing
computerised interfaces and navigation capabilities for more than 50
different types of analysis and test equipment. YieldManager is a
customisable software system that helps manufacturers achieve and maintain
high yields by enabling engineers to collect, correlate, analyse and share
critical data between different points of the manufacturing process. FEI
will market the products as FEI Knights.
FEI has also acquired Revise Inc, a supplier of laser etching products. The
patented technology etches the backside of advanced, complex chips providing
faster, more efficient and precise access for focused ion beam (FIB) circuit
edit. The technology will be used in conjunction with FEI's Vectra series of
circuit edit products. Revise has also developed expertise in the use of its
laser technology as a micro machining tool, which the company believes may
prove useful for future nanotechnology devices such as MEMS and micro
optics.

Electroglas announced earlier this year the intended sale of its optical
wafer inspection operations. This sale has not been completed as expected
and Electroglas has discontinued further development of wafer inspection
products. Electroglas will continue to support existing inspection
customers.

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