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Yield Dynamics Announces European Distribution with TELTEC

Santa Clara, CA, October 4, 2002 – Yield Dynamics, Inc. ("YDI") announced today that it has appointed TELTEC as the exclusive distributor of its yield management and process control products in Europe.

Under the terms of this agreement, more than 75 TELTEC personnel will be providing sales and support services to YDI's customer base directly through TELTEC's local offices in France, Germany, Switzerland, Italy and the United Kingdom.

"TELTEC is an excellent choice for both YDI and its customers in Europe as our exclusive representatives," stated Dr. Jonathan Buckheit, CEO of YDI. "Their local presence in key geographical regions, customer relationships, and strong customer support capabilities are highly complementary with our leading edge products."

According to Mr. Henri Zimmerli, general manager of TELTEC, "Yield Dynamics' software is a good fit for TELTEC because of the strong value proposition it has already shown in the customer base here in Europe. We're looking forward to helping bring these excellent products to more semiconductor companies in Europe and to a long and productive relationship with YDI."

About Yield Dynamics

Headquartered in Santa Clara, Calif., Yield Dynamics, Inc. ("YDI") is the technology leader in yield management and advanced process control for the semiconductor industry. YDI provides the most comprehensive set of software tools available, enabling users to convert large amounts of data into useful information that allows them to ramp products rapidly and achieve higher yields. Additional information about Yield Dynamics can be found at http://www.ydyn.com or by calling (408) 330-9320.

About TELTEC

TELTEC was founded in 1983 by Adolf Bohn and Henri Zimmerli, two industry pioneers that had worked together since 1969 at Teledyne Tac. They signed up the first principal in 1972 (Branson/IPC). Other principals followed over the years, including GaSonics (1973), Therma-Wave (1984) and Westech (1987). TELTEC sold the first CMP systems into Europe. Today, TELTEC has installations in every European semiconductor fab. Additional information about TELTEC can be found at http://www.teltec.com.