CHASKA, Minn.--(BUSINESS WIRE)--March 17, 2005--Entegris, Inc. (Nasdaq:ENTG) today reported results for its fiscal 2005 second quarter ended Feb. 26, 2005. For the second quarter, sales totaled $85.1 million, compared to 2005 first-quarter sales of $90.6 million. The company reported net income of $4.5 million, or 6 cents per diluted share. This compares with $5.7 million, or 8 cents per diluted share, for the fiscal 2005 first quarter, and surpassed Entegris' guidance of 2 cents to 4 cents per share. Fiscal 2004 second quarter sales totaled $80.0 million, with net income of $5.0 million, or 7 cents per diluted share. Entegris generated about $16 million in cash from operations during the 2005 second quarter and now has $149 million in cash and short-term investments on hand. Entegris is the global leader in materials integrity management across multiple industry lines including semiconductor, data storage, life sciences and fuel cell.

"Our materials integrity management reach into multiple markets helped our performance this quarter," said Jim Dauwalter, Entegris' chief executive officer. "We anticipated difficult Semiconductor market conditions, but we're pleased that strength in the Data Storage market provided an offset."

Sales in Data Storage increased sequentially by 43 percent from 2005 first-quarter levels, fueled by broad demand for disk media. Semiconductor market sales declined by 11 percent from the previous quarter, with unit- and consumption-driven sales experiencing similar declines as capital spending driven solutions. Wafer carrier product sales to 300 mm fabs remained stable. Sales to the Life Sciences, Services and Fuel Cell markets remained steady with 2005 first-quarter results.

Operating margin for the fiscal 2005 second quarter was 7.0 percent, versus 8.6 percent for the fiscal 2005 first quarter, and was impacted by lower sales and underabsorbed manufacturing costs.

"During the quarter, we continued efforts to sharpen our customer focus," said Dauwalter. "This has been, and is an ongoing process to create cost savings and focus the organization on increasing sales and value to our customers. We're committed to increasing direct relationships with our customers and offering Entegris' full solution set."

Outlook

"We believe that the Semiconductor market is stabilizing and our prospects in Data Storage remain strong," continued Dauwalter. "We anticipate our unit- and consumable-driven product sales to stabilize and capital-spending sales to be under less pressure. Sales in the Life Sciences, Services and Fuel Cell markets are anticipated to be flat to slightly up sequentially."

Entegris owns 1.1 million shares of Nortem N.V. (formerly Metron Technology N.V.) and expects the first of two liquidation payments in connection with Metron's acquisition by Applied Materials during the 2005 third quarter. The initial proceeds will be $3.75 per share or a cash payment of $3.9 million by Nortem, resulting in a pretax gain for Entegris of about $1.8 million; after tax that represents a gain of $900,000, or 1 cent per share. The timing of the final liquidating distribution of about 95 cents to $1.04 per share, or about $1.0 million in cash, pre-tax, is currently undetermined.

For the third quarter of 2005, the company expects sales to increase slightly and earnings per share of 7 cents to 8 cents, including the expected 1 cent per share Metron liquidation benefit.

Balance Sheet/Cash Flow Statement

Cash, cash equivalents and short-term investments at the end of the fiscal 2005 second quarter increased by $10 million from the first quarter to $149 million. The company generated approximately $16 million in cash from operations during the quarter. Inventories declined by $3 million to $42.9 million, from the prior quarter. Depreciation and amortization expense was approximately $5.7 million for the fiscal 2005 second quarter. Capital expenditures for the same period totaled $4.9 million.

Second-Quarter Results Conference Call Details

Investors have the opportunity to listen to Entegris' second-quarter conference call today at 8:30 a.m. ET over the Internet at www.entegris.com. To listen to the live call, listeners may go to the Web site at least 15 minutes early to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the call.

FORWARD-LOOKING STATEMENTS

Certain information in this news release does not relate to historical financial information and may be deemed to constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties that could cause the company's actual results in the future to differ materially from its historical results and those presently anticipated or projected.

Among these risks and uncertainties are general economic conditions, the cyclical nature of the semiconductor industry, the risks associated with the acceptance of new products and services, fluctuations in raw material pricing, the ability to expand into new markets while improving financial performance and the ability of operations to respond to rapidly changing demand. Other factors that could cause the company's results to differ materially from those contained in its forward looking statements are included in the Form 10K filed in November 2004 and other documents filed by the company with the Securities and Exchange Commission.

ABOUT ENTEGRIS

Entegris products and services protect and transport the critical materials enabling the world's leading technologies. As a leading materials integrity management company, Entegris provides products and services used in key technology industries including the semiconductor, data storage, chemical processing, biopharmaceutical, medical device and fuel cell. Entegris is ISO 9001 certified and has manufacturing or service facilities in the United States, France, Germany, Japan, Malaysia and Singapore. The company's advanced research laboratories are located in Minnesota and Colorado, USA. Directly and through distributors, Entegris provides customer support on six continents. Additional information can be found at: http://www.entegris.com

ENTEGRIS, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Amounts in thousands, except per share amounts)


                      Three months ended         Six months ended
                   ------------------------- -------------------------
                   February 26, February 28, February 26, February 28,
                       2005         2004         2005         2004
                   ------------------------- -------------------------
Net sales              $85,064      $79,970     $175,678     $148,646
Cost of sales           50,279       45,338      103,884       86,485
                   ------------------------- -------------------------
   Gross profit         34,785       34,632       71,794       62,161
Selling, general
 and
 administrative
 expenses               24,442       23,345       48,977       44,389
Engineering,
 research and
 development
 expenses                4,389        4,821        9,089        9,424
                   ------------------------- -------------------------
   Operating
    income               5,954        6,466       13,728        8,348
Interest income,
 net                      (295)         (64)        (636)        (106)
Other (income)
 expense, net              (28)        (656)         366       (1,213)
                   ------------------------- -------------------------
   Income before
    income taxes
    and other
    items   below        6,277        7,186       13,998        9,667
Income tax expense       1,728        2,170        3,699        3,011
Equity in net loss
 (income) of
 affiliates                 74           (7)          85           (4)
                   ------------------------- -------------------------
   Net income           $4,475       $5,023      $10,214       $6,660
                   ========================= =========================

Earnings per
 common share:
   Basic:                $0.06        $0.07        $0.14        $0.09
   Diluted:              $0.06        $0.07        $0.14        $0.09

Weighted shares
 outstanding:
   Basic                73,347       72,844       73,304       72,710
   Diluted              75,429       76,629       75,247       76,248

ENTEGRIS, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)


                                   February 26, 2005  August 28, 2004
                                   -----------------------------------
ASSETS
Cash, cash equivalents and short-
 term investments                          $149,246          $133,180
Marketable securities                         4,833                 -
Accounts receivable                          65,878            74,525
Inventories                                  42,930            45,186
Deferred tax assets                           8,145             8,178
Other current assets                          4,041             3,546
                                   -----------------------------------
   Total current assets                     275,073           264,615

Property, plant and equipment                95,036            97,634

Investments                                   2,515             7,146
Intangible assets                            93,380            95,040
Other assets                                  2,534             2,611
                                   -----------------------------------
   Total assets                            $468,538          $467,046
                                   ===================================

LIABILITIES AND SHAREHOLDERS'
 EQUITY
Current maturities of long-term
 debt                                        $1,536            $1,492
Short-term debt                               5,323             6,477
Accounts payable                             12,520            15,768
Accrued liabilities                          30,659            35,578
Income tax payable                            2,341             5,604
                                   -----------------------------------
   Total current liabilities                 52,379            64,919

Long-term debt, less current
 maturities                                  20,246            18,898
Deferred tax liabilities                     11,052            11,044
Shareholders' equity                        384,861           372,185
                                   -----------------------------------
   Total liabilities and
    shareholders' equity                   $468,538          $467,046
                                   ===================================

CONTACT: Entegris, Inc., Chaska
Public Relations:
Bill Paterson, 952-556-4155


billpaterson@entegris.com
or
Investor Relations:
Heide Erickson, 952-556-8051
heideerickson@entegris.com

SOURCE: Entegris, Inc.