KLA Tencor OverviewFebruary 2007

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Vision and Strategy:

Extend our leadership as the world’s

best Inspection & Metrology company with

differentiated technical solutions and

customer experience.

K

KLA-Tencor Corporate Overview

Wafer Inspection and Metrology Global Leader

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KLA-Tencor Markets

Corporate Highlights

Global leader in yield acceleration since 1976

Installed base ~ 20,000 tools

> 6200 employees

> 3,300 technical personnel in 18 countries

Cumulative R&D investments over $1.2 B over last 4 years

2006 revenue: >$2.0 B

IC Logic

Wafer

IC Foundry

Mask

IC Memory

OtherStorage

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Reticle inspection: Finding the errors before they print

Wafer inspection: Finding the process defects that kill yields

Metrology: Finding the errors that decrease device performance

Analysis software: Turning data into actionable information

#1

KLA75-80%

#1

KLA75-80%

#1

KLA75-80%

#1

KLA40-45%

KLA-Tencor Market Leadership

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KT Technical Leadership

DUV, UV, and visible optics

Electron optics

Image sensors

Illumination systems

High speed data processing

Advanced algorithms

Precision motion control

Innovation Driven by Heavy R&D Investment

High level of R&D spending compared with competitors

Consistent R&D spending throughout market fluctuations

Enables hiring and retention of world-class development teams

% Total Revenue Spent on R&D

0%

5%

10%

15%

20%

25%

FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006

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KLA Tencor Israel Highlights

Established in 1986 in Migdal Ha’Emek

> 250 employees

Business Division: Overlay Metrology

Engineering & Development : Overlay Metrology

KT Common Platform

Integrated Metrology

Corporate SW

Optical Film SW Development

Operations Manufacturing services to multiple products

Service & Support

www.kla-tencor.com/israel