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Yield Dynamics Expands its Marketing and
Engineering Development Center in China

Sunnyvale, CA, October 4, 2004 – Yield Dynamics, Inc. (“YDI”) today announced plans to further expand its marketing and engineering development center in Tianjin, China that was opened earlier this year. YDI initially staffed the center, located approximately one hour outside of the capital of Beijing, with staff including twenty-five software engineers, with plans to increase to fifty by the end of the year.

“The ongoing demand for our yield improvement and advanced process control software has necessitated the expansion of our marketing and software engineering development for our next generation products,” commented Dr. Jonathan Buckheit, CEO and President of YDI. “China was a natural choice for our new marketing and development center because of its large pool of talented engineers, its value proposition, and its proximity to the fastest growing regions in the worldwide semiconductor market.”

The marketing and engineering development center in Tianjin, China underscores YDI’s commitment to the Asia market which is also served by YDI’s sales and support offices in Japan, Taiwan, Singapore, and Shanghai, China.

Dr. Weidong Wang, Chief Scientist of YDI, has been named President of YDI China, and will manage the operation in conjunction with YDI employees who have relocated to Tianjin. According to Dr. Wang, “The entry of YDI into China has been carefully planned to allow for rapid expansion while maintaining the highest quality standards. In order to provide fast and responsive development for Yield Dynamics customers, our expansion plans call for the Tianjin, China office to employ more than 100 engineers by the end of next year.”

About Yield Dynamics, Inc.

Headquartered in Sunnyvale, Calif., Yield Dynamics, Inc. is the leading provider of enterprise yield management and advanced process control software for semiconductor and flat panel display (FPD) manufacturers, as well as fabless chip design companies. The company’s extensible software platform enables customers to quickly identify and correct semiconductor and FPD production failures, achieving faster product ramps and higher yields. Additional information about Yield Dynamics can be found at http://www.ydyn.com or by calling (408) 773-3100.

Yield Dynamics Expands its Marketing and Engineering Development Center in China

Yield Dynamics Expands its Marketing and
Engineering Development Center in China