APPLIED CERAMICS INC. EXPANDS MANUFACTURING TO CROATIA

Expansion Marks Significant Milestone In European Market Support Strategies

SISAK, CROATIA, OCT. 22, 2007 – Applied Ceramics, Inc., a leading fabricator of custom-made components designed and used for the semiconductor industry, today announced the grand opening of its new manufacturing facility in Sisak, Croatia with strategic advantages to expand capacity, global reach, Just In Time Management and cost efficiency. The event will be honored by the presence of Croatian President Stipe Mesic and will take place on October 23, 2007 at 12:00 (CET).

The expansion provides Applied Ceramics a market edge with significant cost advantages and availability alternatives to support the worldwide semiconductor market; thus, complimenting its already extensive sales and support forces worldwide.

“Sisak, Croatia was chosen as an ideal location to realize our business objectives in supporting our European market,” said Matt Sertic, president of Applied Ceramics. “With a very successful industrial past and an academic concentration on mechanical engineering, Sisak, Croatia represents the perfect location for our company’s manufacturing to flourish.”

The new facility adds an approximate 100,000 square feet to Applied Ceramics’ operations and is approximately 40 km from Zagreb’s Airport. The location details are:

Applied Ceramics d.o.o.

Capraška bb – Institut, 440101 Sisak, Croatia

Telephone: +385-44-537-800; Fax: +385-44-537-900

acc@appliedceramics.net

To call the Croatian facility with a direct US number: +1-510-355-1571

By utilizing its expertise in fabricating precise components, Applied Ceramics offers itself as a full service component outlet for semiconductor wafer processing customers. With a wide versatility of materials, engineering and refurbishing services, Applied Ceramics supports multiple semiconductor applications. Applied Ceramics’ products are used in various chemical processing environments.

Utilizing its over 60,000 square feet of facilities in Fremont, California, Applied Ceramics has successfully manufactured critical components for various wafer process systems, including: ETCH, CVD, PVD, CMP, RTP and HTF since 1994. Applied Ceramics works closely with customers' engineers on cost and process efficient design improvements, testing, evaluations and managing spare parts with significant cost savings. Applied Ceramics is a privately held company with headquarters in Fremont, California, additional manufacturing in Sisak, Croatia and sales support offices throughout Europe, Taiwan and Japan. Applied Ceramics is located on the web at: www.appliedceramics.net .

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