U.S. DISPLAY CONSORTIUM AWARDS MAJOR CONTRACT TO LAM RESEARCH CORP. TO
DEVELOP FLAT PANEL DISPLAY ETCH SYSTEM

Contract to Help Fund $13.4 Million R&D Effort Leveraging Lam's TCP
Technology for the Manufacture of Next-Generation Flat Panel Displays

FREMONT, CALIFORNIA, JUNE 22, 1994--Lam Research Corporation (NASDAQ:LRCX)
and the U.S. Display Consortium (USDC) announced today that Lam has been
awarded a major contract to develop an etch system that manufactures
large-scale flat panel displays (FPDs). The joint development agreement,
which is the consortium's largest to date, will help fund a $13.4 million
research and development effort that will leverage Lam's patented
Transformer Coupled Plasma (TCP) technology for next-generation FPD
manufacturing requirements.

The USDC is a crucial part of the U.S. government's $580 million national
flat panel display initiative, and is responsible for selecting domestic
companies with the technology and expertise needed to provide a
competitive manufacturing advantage.

"Etch is an area of focus identified by the USDC's Technical Council that
attracted a great deal of interest from the supplier base in our Request
for Proposal (RFP) process," stated Peter Mills, CEO of the USDC "Lam's
clear potential to address large substrates, such as glass panels used in
display production, was a factor in the Council's decision. Lam's
experience in advanced high-density plasma processes, specifically the
proven track record of their TCP technology, provides an excellent
foundation to bring this technology to the marketplace as quickly as
possible".

The contract has been structured to help fund an aggressive R&D effort that
will accelerate Lam's development of a viable production tool for this
expanding market The two-year program also involves three other groups
Xerox Palo Alto Research Center (PARC) will assist in process integration
and testing of hardware in pilot production, Lawrence Livermore National
Labs will lend valuable expertise in reactor and source modeling, and the
University of Wisconsin will assist in plasma source development and
characterization Together, this team will work under the Lam umbrella to
develop an FPD etch system that meets emerging and future requirements.

Lam's Chief Executive Officer, Roger Emerick, noted that the contract marks
Lam's formal entry into the FPD market, which is projected to grow from a
$4 billion industry in 1994 to a $20 billion industry by the end of the
decade "We have been examining this industry sector and its unique
requirements for more than two years We believe we have a technology that
leapfrogs competitive manufacturing strategies and will support a U S
manufacturing infrastructure This, together with our strategic alliances,
positions us for strong entry into this rapidly expanding market"

Lam reports that the main advantage of its TCP technology is the ability to
control ion energy and density independently, while producing a
high-density uniform plasma over a very large substrate area--features not
available in competitive systems Additionally, the FPD films that need to
be etched mirror those found in the semiconductor industry, namely
polysilicon, silicon nitride, and amorphous silicon--all proven
applications on the TCP etch system, which are currently used by major
chipmakers worldwide.

The USDC is an industry-led, public/private partnership providing a common
platform for flat panel display manufacturers and developers, FPD users,
and the supplier base Based in San Jose Calif, the consortium's membership
includes Advanced Research Projects Agency (ARPA), AT&T, Electro-Plasma,
Kent Display Systems, Kopin Corp, Norden Systems, Optical Imaging Systems
(OIS), Photonics Imaging, Planar Systems, Plasmaco, Sl Diamond, Silicon
Video Corp, Standish Industries, and Xerox PARC The USDC's mission is to
enlarge the U S infrastructure required to support a world-class
U.S.-based manufacturing capability for high-definition displays

Lam Research Corporation is a leading supplier of wafer processing
equipment to the worldwide semiconductor industry The company's broad
product offerings are focused on etch and deposition, two of the most
vital areas in the fabrication of current and future integrated circuits
Headquartered in Fremont Calif, Lam maintains customer support centers
throughout the United States, Europe, Japan, and Asia/Pacific to support
its global customer base. Founded in 1980, Lam is publicly held and listed
on the NASDAQ National Market System under the symbol LRCX.

Lam Research Corp
4650 Cushing Parkway
Fremont, CA 94538-6470
510-659-0200,  fax 510-659-2935

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