PHS Mems raises € 31 million in a major funding round Paris, Thursday May 31, 2001

Grenoble, May 31st, 2001 - PHS Mems, specialized in the design,development and production of micro electro-mechanical systems, or Mems, for the wireless and optical communications industry, has secured over € 31 million in third funding round, co-lead
by Sofinov and AXA Private Equity. To date, PHS Mems has raised over € 45 million.

Completed despite the current market sentiment, this round of financing reflects the relevance of Mems as an enabling technology to meet the communications industry performance demands.

« In fact, it confirms our shareholders unconditional faith and support in PHS Mems’ strategy and industrial assets,” said Alberto Martorell, President and C.E.O.

Joining AXA Private Equity and Sofinov « Caisse de Dépôt et Placement du Québec », shareholders include ETF Group, the IDI Group, Thomson-CSF Ventures, Finove and Innovafrance.

Unique Mems design and manufacturing expertise has been acquired as a result of multiple customer projects, with volume production expected in the second half of the year.

PHS Mems offers the required technologies, materials and processes to manufacture on silicon,silica or SOI substrates. With an existing in-house production capacity in excess of 12 000 wafers per month in its 2800 m² of clean rooms, PHS Mems delivers processed dices,wafers, or wafer-level packaged parts.

The company will use the funds to further expand its growing Mems Design Center, its Sales and Marketing force, as well as its international presence.

« Micro-electronics and copper have enabled the technology evolution we live in today.

Micro-electromechanics and fiber will unleash a technology revolution of greater social and economic impact, through its multi-disciplinary nature and its complementarity with micro-electronics.

PHS Mems is positioned to become an indispensable partner to the design and manufacturing of leading-edge Telecom Mems », said Alberto Martorell, President and CEO, PHS Mems.

« Mems represent one of the fastest growing technologies, particularly in the wireless and optical communications industry. As a co-leader in this significant round, Sofinov confirms its active support of PHS Mems, shown in the previous round», said Pascal Voulton, IT
Investments Director, Sofinov.

« PHS Mems has the required assets to consolidate its industrial leadership as a communications Mems supplier.

PHS Mems meets all the fundamental criteria we seek: strategic know-how and technology in a fast-growing sector, an experienced management team and a unique market position, enabling a rapid company growth », said Vincent Gombault, Board member, Axa Private Equity.

More about PHS Mems

Created in August 1998, PHS Mems is an industrial Company based near Grenoble, France.

With a highly skilled team of 69 people, PHS Mems develops and manufactures Mems devices for wireless and optical communication applications, with quality built-in from early design phases.

Built around state of the art hardware and software, PHS Mems Design Center runs a set of three design libraries for photonic, broadband and micropackaging applications.
The team of 15 experts – doctors and engineers – has extensive experience in product design, materials and processes to deliver the best solution matching customer functional requirements.

PHS Mems masters an extended range of qualified processes and owns a portfolio of 58 international patents.

PHS Mems is positioned as one of the few firms with industrial capabilities offering a comprehensive Service from design to volume production.
More information available on our website: www.phsmems.com

Press Contacts:

PHS Mems
Agnès Vincent
Tel: + 33 4 76 58 49 56
Fax: + 33 4 76 58 49 79
e-mail: a.vincent@phsmems.com

Harvard Public Relations
Anne-Gaëlle Girard / Ouleya Arigue
Tel: + 33 1 44 88 97 97
Fax: + 33 1 44 88 97 66
e-mail: ouleya.arigue@harvard.fr