KLA-Tencor Purchases Land for New Campus in Livermore, California
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San Jose, CA, May 24, 2000 - KLA-Tencor Corp. (Nasdaq: KLAC) today announced it has agreed to purchase up to 43 acres of land in Livermore, Calif., to build a new campus. Located in the Shea Business Park, adjacent to Interstate 580, the campus will initially include two new 120,000-square-foot buildings dedicated to manufacturing and customer service. Construction on the new campus is scheduled to begin during the summer of this year.

"With the current boom in the semiconductor industry, we've had to expand our manufacturing capacity to meet the growing demand for our yield management products and services," stated Ken Schroeder, president and chief executive officer of KLA-Tencor. "Establishing a new campus in Livermore will allow us to draw upon the large local pool of talent and will provide new employees who live in the area with an opportunity to bypass the often traffic-clogged commute to Silicon Valley. It will also allow current employees that live or plan to live in the Tri-Valley and Central Valley areas the opportunity to work more closely to home and reduce their commute time. The new campus will also be near enough to our main corporate offices in San Jose and Milpitas to leverage the resources available at those campuses."

Building One at the new Livermore campus will provide a location for expanding KLA-Tencor's manufacturing capacity. Approximately 40,000 square-feet will be dedicated to cleanroom space. Building Two will house several departments of KLA-Tencor's Worldwide Support Operations (WSO), including logistics, training, customer response center and central services, as well as product installation and retrofit teams. KLA-Tencor plans to build four additional buildings on the campus over the next five years.

"We welcome the presence of companies like KLA-Tencor, which offer the highly educated professionals who live in Livermore with an opportunity to work in a fast-growing, high-tech industry close to home," stated Cathie Brown, mayor of Livermore. "We're pleased that KLA-Tencor, which has a good environmental, health and safety record, has chosen to establish operations in our city."

About KLA-Tencor: KLA-Tencor is the world leader in yield management and process control solutions for semiconductor manufacturing and related industries. Headquartered in San Jose, Calif., the company has sales and service offices around the world. An S&P 500 company, KLA-Tencor is traded on the Nasdaq National Market under the symbol KLAC.

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