News

On December 6, 2000, Daido Air Products Electronics, Inc.(DAP), Air Water Inc. and Kinetics Group Inc., announced the signing of a letter of intent to form a joint venture company for manufacturing and sales of delivery equipment for gas and chemicals to serve the Japanese semiconductor and electronics industries. The new company will be named , Kinetics Japan K. K. and will be based in The ownership share for each partner is as follows: Air Water 10%, DAP 41%, and Kinetics 49%. DAP is a joint venture consisting of Air Water (51%) and Air Products and Chemicals, Inc. (49%). The new company will be established in January 2001 and will commence business activities promptly after establishment. Kinetics Japan K.K. designs and manufactures gas and chemical distribution systems essential to CVD, Etching and CMP processes. These processes are core technologies for semiconductor manufacturing in which thin film integrated circuits are formed using gas and chemicals. The joint venture will be engaged in providing modular and conventional gas distribution systems (gas panels), mass flow controllers, chemical and CMP slurry blending and distribution systems, and process chillers. All of these systems are crucial to the semiconductor processes noted above. Kinetics has the largest worldwide market share for gas panels and CMP slurry distribution systems. Customers in Japan are also familiar with gas panels currently provided by Air Water. In addition Kinetics is well known as a leading producer of mass flow controllers and chillers. Kinetics Japan K.K. will provide sales, manufacturing, installation, and service for these Kinetics, and Air Water products in Japan., Air Water Inc. was formed on April 1, 2000, the result of a merger between Daido Hoxan Inc. and Kyodo Oxygen Co., Ltd. As Japan's second largest industrial gas company, Air Water was established to serve the electronics, metals, food processing, welding, and medical industries. Daido Air Products Electronics, Inc. ("DAP") was established on January 1, 1997 as a joint venture between Air Water Inc.(formally Daido Hoxan Inc.) and Air Products and Chemicals, Inc. to supply gases, chemicals, environmental systems, equipment and services to the electronics industry in Japan. DAP, which has its headquarters in Sakai, Osaka, is growing 20 percent per year since it was founded in 1997. Sales revenue reached 11.3 billion yen in 1999, DAP's third year of operations and anticipated to reach 14.5 billion in 2000 and 20 billion in 2002. Each year DAP adds new products, services and production capabilities to its broad portfolio of offerings. Kinetics is the world's largest provider of critical process infrastructure, uniquely positioned to meet its customers' needs to integrate new process manufacturing technologies and expand capacity in their facilities. Kinetics designs and manufactures modular and conventional gas distribution systems, mass flow controllers, process chillers, chemical and CMP slurry blending and distribution systems, and provides outsource contract manufacturing services. Kinetics is an agile, global organization, 7,300 employees strong, with strategic expansion plans to leverage its 27 years of experience and innovation into new markets around the globe. CONTACTS Daido Air Products Electronics, Inc. Kenzo Uotani General Manager, Business Development Division FAX : 81-6-6120-0913 E-mail : uotani-kenzo@dap.co.jp Kinetics Japan, K.K., Osaka Head Office Akihiro Tahara Vice President TEL : 81-6-6150-1581  FAX : 81-6-6150-1606 E-mail : atahara@kineticsgroup.com Kinetics Japan, K.K., Yokohama Office Masato Shibasaki Manager, Engineering TEL : 81-45-477-3525  FAX : 81-45-477-3526 E-mai : mshibasaki@kineticsgroup.com

On May 30, 2001, Kinetics Japan K.K. held a party in honor of its grand opening for business in Japan. Kinetics Japan has its headquarters in Shin-Osaka, Japan and is engaged in the manufacturing and marketing of semiconductor equipment such as gas panels, mass flow controllers and other chemical delivery equipment. Mr. Susumu Yamada is the President of Kinetics Japan, which is a joint venture of Air Water Inc., Daido Air Products, and Kinetics Group, Inc. The opening party was held at the Hotel New Otani in Kioi-cho, Tokyo and was well attended by customers, affiliates and other supporters of Kinetics Japan. Prior to the party, Mr. Haruo Nakatsuka, Inspector of Toshiba, provided an excellent lecture, which was titled "Business Models of Semiconductor Manufacturing for the 21st Century". This interesting talk and the wonderful opening party has helped to launch Kinetics Japan in grand style. Our thanks to all who attended and to those who have sent good wishes for success. 




CONTACTS
Daido Air Products Electronics, Inc.
TEL : 81-6-6120-0912

Daido Air Products Electronics (DAP) headquartered in Sakai-shi, Osaka, (President: Isamu Handa) will develop a leasing business based on a transfilling system of metalorganic gases. The company aims to popularize the use of "EpiFill" among MOCVD (Metalorganic Chemical Vapor Deposition) facilities in Japan. "EpiFill" is an automatic gas supply system developed by Epichem, a British company that produces metalorganics. Although today only about six EpiFill units are operating worldwide, potential demand for the system is substantial in Japan. Thus, DAP plans to recommend that users adopt the system, capitalizing on the full-scale operations of a transfill, analytical and customer support center that DAP recently completed in Tsukuba. DAP started in 1997 exclusively distributing specialty gases for electronics applications, and has been rapidly expanding its business backed by the recovery of the semiconductor industry. The company started constructing the transfill, analytical and customer support center for metalorganics in Tsukuba at the end of last year. The building was completed in March of 2000 and shipments of samples started in the summer following test runs of the facilities. Production of compound semiconductors (gallium arsenic, gallium phosphorous, indium phosphate, etc.) is expanding at a very rapid rate. Meanwhile, plants for liquid/gas-phase epitaxy frequently use specialty gases such as metalorganic gases to produce compound semiconductors. These plants are usually designated as "small-lot hazardous substance storage" but they may be required to install hazardous substance storage depending on the amount of such substances they handle. Installed in these storage areas or in CVD bases, EpiFill can automatically transfill gas in a distribution cylinder into customer cylinders (up to four cylinders at a time), thereby simplifying plant operations. Epifill also controls gas usage and reduces the frequency of connection and disconnection of cylinders, both of which lead to savings in materials. DAP anticipates strong potential demand for EpiFill because there is no such system in Japan. In parallel with this transfill system leasing business, the company plans to promote sales of its gas-related products of proven performance. For example, DAP has been a significant supplier of TMG (trimethyl gallium) for several years and additional metalorganic gases are now also beginning to grow in sales volume. CONTACTS Daido Air Products Electronics, Inc. Masaaki Kameda General Manager, Compound Semiconductor Materials Division TEL : 81-3-3432-7032 E-mail : kameda-masaaki@dap.co.jp Yoshiaki Yoshiura Manager Quality Assurance Department TEL : 81-298-66-2220  FAX : 81-298-66-2208 E-mai : yoshiura-yoshiaki@dap.co.jp

Daido Air Products Electronics (DAP) held a reception at Tsukubasan Keisei Hotel on September 20th to commemorate the formal opening of its Transfill, Analytical and Customer Support Center for metalorganics. Isamu Handa, the president of DAP, said in his opening remarks, "DAP was inaugurated in 1997 when Air Water and Air Products merged. We took over the metalorganics business of Air Products Japan and have been acting as a general agent of Epichem of U.K., which produces metalorganics. In expectation of future potential of the business, we constructed the center in March, modeling after the transfill center in Boston. We are determined to further expand the business." Representing the guests at the reception, Mark Fine, the president of Epichem, says, "Metalorganics are used for mobile equipment, and are indispensable for state-of-the-art areas such as the Internet. We are sure we can provide customers with value-added services." CONTACTS Daido Air Products Electronics, Inc. Masaaki Kameda General Manager, Compound Semiconductor Materials Division TEL : 81-3-3432-7032 E-mail : kameda-masaaki@dap.co.jp Yoshiaki Yoshiura Manager Quality Assurance Department TEL : 81-298-66-2220 E-mail : yoshiura-yoshiaki@dap.co.jp

Daido Air Products acquired the ISO9002 certification for 100% Monosilane and its production, on October 29, 1999.DAP, which has moved it's Monosilane gas and Monosilane mixture gas production business from Air Water on April, provided for the acquisition of the ISO standard at their production base, Amagasaki Specialty Gas Center.

CONTACTS Daido Air Products Electronics, Inc. Masaki Kitagishi Senior Manager, Specialty Gases Group Sales Division TEL : 81-6-6120-0912 Masanao Ikeda Senior Assistant Manager, Specialty Gases Group Sales Division TEL : 81-6-6120-0912