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JMAR Semiconductor

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JMAR semiconductor manufacturing division signs manufacturing and sales agreement with IMP Inc.

SAN DIEGO--(BUSINESS WIRE)--June 26, 1996--JMAR Industries Inc. (NASDAQ:JMAR, current price: $3 27/32) Wednesday announced that its specialty semiconductor manufacturing division in Irvine, Calif., California ASIC Technical Services Inc. (CATS) has signed a manufacturing and sales agreement with San Jose, Calif.-based IMP Inc. (NASDAQ:IMPX) to share CMOS gate array design and manufacturing resources.

Gate arrays are customizable semiconductor building blocks for a variety of critical digital computer components. They constitute approximately 40% of the $17 billion worldwide market for application-specific integrated circuits, or ASICs.

Under the agreement, IMP will sell gate array base wafers to CATS. Using its fast-turn direct write-on-wafer technology, CATS will produce and sell completed gate arrays to IMP customers for their prototype and initial production quantities.

For high-volume production of proven designs, CATS will transfer the customer's database to IMP to manufacture using conventional high-volume techniques and will receive fees from IMP on the sales of those products.

"This is a win-win arrangement for IMP, CATS and our mutual customers," David Laws, president and CEO of IMP stated. "IMP can now concentrate its resources on high-volume manufacturing and CATS can focus on the low-volume speciality markets for which its process is geared."

Edwin Barrowcliff, president of CATS, said: "We are pleased to have this opportunity to work closely with such an aggressive, creative, fast-growth company as IMP. Our technologies and market segments complement each other very well.

"This mutually beneficial agreement will allow us to provide electronic product designers and prototypers with a unique, affordable, quick-response source of small volumes of CMOS gate arrays that perform the same as those produced by high-volume methods." He continued, "IMP has granted CATS a license for its proprietary CMOS gate array design and manufacturing processes.

"The agreement also provides for the IMP and CATS sales forces to share pertinent marketing information and keep each other informed as to the status of each company's product offerings."

"Although it is yet too early to gauge the impact CATS will ultimately have on our consolidated results for 1996, we do expect the division to begin to make important contributions to JMAR's sales and profits within the next 12 months," noted JMAR Chairman and CEO John Martinez. "However, before that can take place, we must complete the upgrade of our manufacturing facility to match IMP's specifications, a process that we anticipate will take several months."

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: The statements regarding future sales growth are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements, including delays in shipment or cancellation of orders, timing of future orders, customer reorganizations, fluctuations in demand and the other risks detailed from time to time in the company's reports, which are filed with the Securities and Exchange Commission.

JMAR Industries develops, manufactures and markets precision measurement and manufacturing systems and specialty semiconductor products for the microelectronics and medical industries.

The company conducts its business through three divisions in Southern California: Pacific Precision Laboratories (PPL), its equipment manufacturing operation in Los Angeles County; California ASIC Technical Services Inc. (CATS), its specialty semiconductor manufacturing operation in Irvine; and JMAR Technology Co. (JTC), its research and development center in San Diego.

JMAR has an investment banking relationship with M.H. Meyerson & Co. Coverage is provided by Aaron Lehmann, senior investment analyst, 800/888-8118.

Логотип: JMAR Semiconductor Сайт: www.jmar.com


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