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SAN JOSE, Calif., Aug. 13 /PRNewswire/ -- Numerical Technologies, Inc. (Nasdaq: NMTC) today announced an agreement with Etec Systems, Inc., an Applied Materials, Inc. (Nasdaq: AMAT) company, to license Numerical's Virtual Stepper System(TM) software. Etec, a leading supplier of reticle inspection systems, expects to incorporate Numerical's software in its ARIS(TM)100i systems.

With Numerical's Virtual Stepper technology, Etec's ARIS100i systems can analyze a reticle image under simulated lithographic conditions, allowing customers to predict whether a defect is likely to be reproduced on a wafer, thus saving both time and wafer costs. The agreement also allows Etec to use Numerical's modules for attenuated phase-shifting analysis, automated defect severity scoring, and alternating aperture phase shift masks.

``We believe that combining Etec's reticle inspection systems with Numerical's software will provide our customers with an excellent inspection solution to improve photomask yield and throughput,'' said Marek Sternheim, general manager of Etec's Mask Inspection Product Group. ``Customers can now conduct quality inspections of reticles before they are shipped, saving critical time prior to manufacturing.''

``Traditional reticle inspection and repair costs represent a significant portion of mask house capital investment expenditures,'' said Atul Sharan, Numerical's senior vice president of marketing and business development. ``Etec's ARIS100i and Numerical's Virtual Stepper provide an 'inspect all/repair-what-prints' solution that carries significant cost benefits. Reticle manufacturers and fabs can both use the same system for incoming reticle quality and control, enabling reticle and fab engineers to compare the same data when discussing defect issues.''

Etec's ARIS100i inspection system is designed to capture defects on reticles using 130 nm and smaller design rules. Using its optional linewidth monitoring capability, the ARIS100i is ideal for process development and monitoring during reticle manufacturing. The system's automated linewidth and transmission measurement tools, combined with the new integrated Virtual Stepper simulation capability, are expected to provide easy and reliable reticle defect analysis to separate ``killer'' from ``nuisance'' defects. This capability is expected to enable reticle manufacturers to reduce costs by avoiding unnecessary and expensive reticle repairs to eliminate defects that have no impact on mask printability.

About Numerical Technologies:

Numerical Technologies, Inc., ranked as one of the 100 fastest growing technology companies by Forbes ASAP and the number one best small electronics company in Electronic Business, develops and markets proprietary technology, software tools and services that enable the semiconductor industry to produce subwavelength integrated circuits, i.e., integrated circuits with components smaller than the wavelength of light used to create circuit patterns on silicon. Numerical's products and industry alliances form a comprehensive design-to-silicon solution that enables the creation of smaller, faster and more power-efficient semiconductors using available manufacturing equipment. Numerical's customers include the world's leading semiconductor companies, design automation tool vendors, semiconductor equipment suppliers and photomask manufacturers. Additional information about the company is available on the Web at http://www.numeritech.com .

Safe Harbor Statement:

This release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements about the adoption of our technology by the semiconductor industry, development and deployment of our software, payment of licensing fees, and our customers' ability to benefit from our services and technology are forward-looking statements. These statements are made based on Numerical's current beliefs and expectations. Investors are cautioned that all forward-looking statements involve risks and uncertainties. Actual results may differ materially from the results predicted. Risk factors that could affect Numerical's future include business conditions, economic conditions and growth in the semiconductor industry, the adoption of our proprietary technology by the semiconductor industry, and our ability to maintain current, and enter into new, industry partnerships. For more information about factors that could potentially affect Numerical's financial results, please refer to the prospectus filed on 4/7/00 and other filings with the Securities and Exchange Commission, copies of which may be accessed through the SEC's web site at http://www.sec.gov/ . Numerical does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of Numerical.

NOTE: Virtual Stepper System is a trademark of Numerical Technologies, Inc.

ARIS is a trademark of Etec Systems, Inc., an Applied Materials, Inc. company.