Photronics Announces Second Joint Venture with Dai Nippon Printing

Photronics Announces Second Joint Venture with Dai Nippon Printing
BROOKFIELD, CT  -- (Marketwired) -- 05/17/17 --  
--  Extends successful Taiwan partnership into a new joint venture targeting
    the growing and strategically important China semiconductor market
--  Optimizes investment composition and strategy, while offering advanced
    process technology and a broad product portfolio

Photronics, Inc. (NASDAQ: PLAB), a worldwide leader in supplying
innovative imaging technology solutions for the global electronics
industry, today announced an agreement with Dai Nippon Printing Co.,
Ltd. (DNP) (TSE: 7912) to form a joint venture focused on serving
semiconductor manufacturers in China. The agreement states that a
subsidiary of DNP will acquire 49.99% of Photronics' wholly foreign
owned entity in Xiamen, China, with Photronics maintaining an
ownership of 50.01%. The joint venture's financial statements will be
included in the consolidated financial statements of Photronics. The
joint venture, which will be called Photronics DNP Mask Corporation
Xiamen (PDMCX), is subject to regulatory approvals and customary
closing conditions, and is expected to close by the end of
Photronics' fiscal year 2017.

PDMCX will be modeled after the successful joint venture formed by
Photronics and DNP in 2014 to serve the Taiwan market, Photronics DNP
Mask Corporation (PDMC). PDMCX will include the state-of-the-art
photomask manufacturing facility currently under construction in
Xiamen, China. The facility, which is scheduled to begin production
by the end of 2018, will feature advanced process technology,
experienced personnel, and high-end equipment; and should benefit
through shared resources, investment and collaboration between PDMC,
Photronics and DNP. Each party will contribute cash in proportion to
their ownership to fund the previously announced $160 million
investment over five years.

"This combination is a testament to our great success in Taiwan and a
strong desire by each party to extend this winning partnership into
China for the benefit of local customers and the development of
industry infrastructure," said Peter Kirlin, chief executive officer
of Photronics. "The growing importance of the China semiconductor
market requires that we bring superior global resources and a broad
spectrum of cutting edge technologies and methods in order to best
ensure our customers' success. The formation of this joint venture
provides beneficial critical mass to accelerate meeting those
objectives. China customers will benefit through local access to
advanced manufacturing processes, industry leading technology, and
world-class customer support to improve their time to market and
yield ramp. The joint venture also provides an optimal solution for
shareholders as we are able to improve capital efficiency while
offering advanced process technology and a broad product portfolio."

"We are extremely satisfied with our relationship with Photronics in
Taiwan, and very excited to extend this relationship into the
critical China market," said Mitsuru Tsuchiya, Corporate Officer of
DNP. "In Taiwan, we have been able to accomplish much more together
than we could have separately, and I'm confident that together we
will enjoy similar success in China. Our partnership brings the
commitment, technology and manufacturing strength of DNP and
Photronics to jointly serve the expanding China market, through
industry leading local capability backed up by the global technology
and manufacturing resources of both parent companies."

In a separate press release issued today, Photronics announced second
quarter fiscal 2017 results for the period ended April 30, 2017.

Conference Call

A conference call is scheduled for 8:30 a.m. Eastern time on
Wednesday, May 17, 2017. The call can be accessed by logging onto
Photronics' web site at The live dial-in number
is (877) 377-7095 or (408) 774-4601 outside of the United States and
Canada. The call will be archived on Photronics' web site for instant
replay access.

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

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.

For Further Information: 
R. Troy Dewar, CFA
Director, Investor Relations 
(203) 740-5610 
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