SAN JOSE, Calif., Apr. 12, 2004--KLA-Tencor (NASDAQ: KLAC) today announced that it has established a team of application and installation engineers in Singapore to improve the efficiency and cost-effectiveness of its engineering services for its growing customer base throughout the Asia-Pacific region. Created in partnership with the Singapore Economic Development Board (EDB), the International Applications and Installations Engineering Team comprises a group of highly skilled engineers within a mobile and flexible framework that enables them to quickly respond to customers' on-site support needs. The team is located at KLA-Tencor's Woodlands facility in Singapore.

According to KLA-Tencor, several factors led to its decision to select Singapore as the location for the new team. In addition to serving as a key hub for the greater Asia-Pacific region, Singapore is widely recognized for its excellent infrastructure, skilled workforce and high educational standards. In addition, KLA-Tencor has received strong support from the Singapore EDB for the program.

"Due to the cyclical nature of the semiconductor industry, it can be extremely challenging and costly for our customers to maintain the critical mass of skilled engineers needed to ensure their equipment is operating at optimal levels," stated Chong Chan Pin, Singapore technical director at KLA-Tencor. "Establishing this team in Singapore enables us to provide our customers with an added layer of expertise to supplement their own engineering teams when they are needed. The support of the Singapore EDB has been invaluable in enabling us to accelerate the implementation of this new team."

"KLA-Tencor's decision to use Singapore as a centralized resource base to service the regional and international market allows them to leverage Singapore's strategic location in the region, as well as the ready availability of a highly-skilled workforce for their business operations," stated Tan Choon Shian, director for electronics and precision engineering, Singapore EDB. "The new engineering capabilities introduced by KLA-Tencor's International Applications and Installations Engineering Team will also bolster that of our own. EDB is pleased to be able to play a role in KLA-Tencor's international business plans and we look forward to a long, enduring partnership."

KLA-Tencor reports that it has already received positive responses from customers about the new team.
Mr. KiByung Kang, a senior engineer at Samsung's K-2 site in Kyungki-Do, Korea, stated, "Our group experienced the benefits of KLA-Tencor's International Applications staff first-hand at Lines 6 through 9. While local resources were engaged on a key Samsung project, the International Applications staff provided critical relief in system evaluation and production-sustaining activities to ensure production continued to run smoothly without delay."

According to Jason Shields, senior director of application services at KLA-Tencor, lowering the cost per good die is an important goal of KLA-Tencor's customers in Asia, and a key driver behind the implementation of the new engineering team. "Today's low-cost leaders are doing more than lowering infrastructure costs," stated Shields. "They're moving ahead of the pack by investing more in process control to accelerate their process development efforts, as well as to lower their overall manufacturing and service costs. Our International Applications and Installations Engineering team was conceived to help deliver the mission-critical services that our customers need to succeed in today's high-intensity market, where their technology challenges, competitive and market pressures, and capital at risk are greater than ever."

KLA-Tencor's International Applications and Installations Engineering Team is located at:

KLA-Tencor Singapore Pte Ltd
Northtech, 29 Woodlands Industrial Park E1, #04-07/10
Singapore 757716
Phone: +65-6367-6788
Fax: +65-6781-7188

About KLA-Tencor: KLA-Tencor is the world leader in yield management and process control solutions for semiconductor manufacturing and related industries. Headquartered in San Jose, Calif., with operations around the world, KLA-Tencor ranked #6 on S&P's 2002 index of the top 500 companies in the U.S. KLA-Tencor is traded on the Nasdaq National Market under the symbol KLAC. Additional information about the company is available on the Internet at http://www.kla-tencor.com

Contact:
Meggan Powers
Director Corporate Communications