Photronics Announces Closing of Joint Venture in Taiwan with Dai Nippon Printing

  Photronics Announces Closing of Joint Venture in Taiwan with Dai Nippon
  Printing

    Creates Largest Domestic Supplier of Leading Edge Photomasks in Taiwan

Business Wire

BROOKFIELD, Conn. -- April 3, 2014

Photronics, Inc. (NASDAQ:PLAB), a worldwide leader in supplying innovative
imaging technology solutions for the global electronics industry, today
announced the successful closing of the previously announced joint venture
with Dai Nippon Printing Co., Ltd. (DNP) (7912:Tokyo Stock Exchange). The
joint venture, Photronics DNP Mask Corporation (PDMC), will focus on serving
semiconductor manufacturers in Taiwan. The closing followed regulatory
approvals received from Taiwan authorities on March 28, 2014. The joint
venture was effective at 12:00 a.m., Taiwan time, April 4, 2014.

The non-cash transaction merged DNP Photomask Technology Taiwan Co., Ltd.
(DPTT), a wholly owned subsidiary of DNP, into Photronics Semiconductor Mask
Corporation (PSMC), a wholly owned subsidiary of Photronics. Photronics and
DNP own 50.01% and 49.99% of the joint venture, respectively, and the
financial statements will be included in the consolidated financial statements
of Photronics.

Governance of PDMC will be shared by Photronics and DNP through a seven member
board of directors with four Photronics members and three DNP members. Dr.
Peter Kirlin, Photronics’ President, will be named Chairman of the Board of
PDMC, Mr. Hideyuki Tanaka from DNP will be named Vice Chairman and Vice
General Manager, and Dr. Frank Lee, PSMC President, was named General Manager.

Constantine (“Deno”) Macricostas, Photronics' Chairman and Chief Executive
Officer, commented, “This is a very exciting day for our customers, partners
and employees. Photronics DNP Mask Corporation provides a combination of
high-end technology and manufacturing capacity, with scale and efficiency to
offer superior long-term, strategic capabilities for our customers in the
region. Our high-end technology, strong financial foundation and efficient
operating model offer a powerful and sustainable solution for semiconductor
manufacturers in Taiwan.”

Koichi Takanami, Executive Vice President, Dai Nippon Printing Co., Ltd.
stated, “Taiwan is an important photomask market. Photronics DNP Mask
Corporation will bring to that market a combination of DNP's logic photomask
technologies, Photronics, Inc.'s memory photomask technologies, and economies
of scale. We will continue to work hard at customer satisfaction by maximizing
both companies' strengths in order to provide enhanced products and services.”

About Photronics

Photronics is a leading worldwide manufacturer of photomasks. Photomasks are
high precision quartz plates that contain microscopic images of electronic
circuits. A key element in the manufacture of semiconductors and flat panel
displays, photomasks are used to transfer circuit patterns onto semiconductor
wafers and flat panel substrates during the fabrication of integrated
circuits, a variety of flat panel displays and, to a lesser extent, other
types of electrical and optical components. They are produced in accordance
with product designs provided by customers at strategically located
manufacturing facilities in Asia, Europe, and North America. Additional
information on the Company can be accessed at www.photronics.com

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor”
for forward-looking statements made by or on behalf of Photronics, Inc. and
its subsidiaries (the Company). The forward-looking statements contained in
this press release and other parts of Photronics’ web site involve risks and
uncertainties that may affect the Company’s operations, markets, products,
services, prices, and other factors. These risks and uncertainties include,
but are not limited to, economic, competitive, legal, governmental, and
technological factors as well as decisions we may make in the future regarding
our business, capital structure and other matters. These forward-looking
statements generally can be identified by phrases such as “believes”,
“expects”, “anticipates”, “plans”, “projects”, and similar expressions.
Accordingly, there is no assurance that the Company’s expectations will be
realized. For a fuller discussion of the factors that may affect the Company's
operations, see "Forward Looking Statements" in the Company's Quarterly and
Annual Reports to the Securities and Exchange Commission on Forms 10-Q and
10-K. The Company assumes no obligation to provide revisions to any
forward-looking statements.

About Dai Nippon Printing

DNP [Dai Nippon Printing Co., Ltd.] is a world-class comprehensive printing
company with 1.446 trillion yen in annual revenues and approximately 40,000
employees. Based in Tokyo, Japan, DNP offers a broad range of products and
services for publishing, commercial printing, smart cards, networking, and
electronics components, among others. Its products in the electronics field
include color filters and other components for LCDs, photomasks, and
semiconductor-related components. In the photomask market DNP is a world
leader, utilizing its time-honored printing techniques and know-how in the
fabrication of cutting- edge photomasks.

05-2014

Contact:

Photronics, Inc.
Pete Broadbent, 203-775-9000
Vice President, Investor Relations & Marketing
pbroadbent@photronics.com
 
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