Photronics Revises Guidance for Third Quarter of Fiscal 2007

    BROOKFIELD, CONN., August 1 /CNW/ - Photronics, Inc. (Nasdaq:  PLAB), a
worldwide leader in supplying innovative imaging technology solutions for the
global electronics industry, announced today that it is revising its fiscal
2007 third quarter revenue and earnings guidance. Photronics expects that
revenues for the three months ended July 29, 2007 will be approximately $101.0
million to $103.0 million compared to previous guidance of $110.0 million to
$120.0 million. As a result, earnings are expected to be $0.01 to $0.04 per

    Photronics stated that the reason for the revenue and earnings revision
was a combination of a shortfall in flat panel display (FPD) and European
semiconductor photomask orders and shipments compared to the Company's initial
forecasts. The Company highlighted that the end markets for its FPD customers
has noticeably improved, but that strategic customers are still working
through aggressive cost reduction and productivity enhancement plans that are
likely to minimize the introduction of new products through the balance of
Photronics' fiscal year. In addition to the FPD revenue shortfall, the Company
experienced reduced demand among semiconductor photomask customers based in
Europe. Demand for photomasks during the quarter was disrupted by strategic
realignment activities among various alliance partners in Europe. These
disruptions are expected to be resolved by calendar year's end.

    "While our FPD customers are experiencing stronger demand for monitors
and larger television form factors, they have not yet begun to release new
designs from their development pipeline," stated Michael J. Luttati, Chief
Executive Officer. "All indicators suggest that the design release cycle
should improve by end of calendar 2007. In our semiconductor photomask
business, several of our customers are completing the re-alignment of their
strategic partnerships for next generation process technologies amidst a mild
industry down cycle. These industry dynamics have confirmed and heightened our
sense of urgency to complete our transformation of Photronics into a
profitable technology and market share leader.

    In closing Mr. Luttati noted, "Visibility in our business has always been
limited, typically 1 to 2 weeks since we operate with minimal backlog thereby
introducing a degree of uncertainty quarter to quarter. The strategic actions
we have underway, coupled with rapidly changing market factors, has created an
additional component of volatility in our performance which will likely
continue over the next few quarters. The ramp up of our new facility in China,
improved market momentum in Flat Panel, especially G7 and above technologies,
and the start up of our North American NanoFab, where we will begin to service
customers using 65 nanometer and below processes, will all contribute
positively to Photronics' competitive positioning and long-term growth."

    Photronics will release its fiscal third quarter earnings after the
market closes on Wednesday, August 15, 2007 A conference call with investors
and the media can be accessed by logging onto Photronics' web site at, then clicking on the Conference Call button. The call is
scheduled for 8:30 a.m. Eastern Daylight Time on Thursday, August 16, 2007 and
will be archived on the web site for instant replay access until the Company
reports its fiscal 2007 fourth quarter results after the market closes on
Tuesday, December 4, 2007.

    Photronics is a leading worldwide manufacturer of photomasks. Photomasks
are high precision quartz plates that contain microscopic images of electronic
circuits. A key element in the manufacture of semiconductors and flat panel
displays, photomasks are used to transfer circuit patterns onto semiconductor
wafers and flat panel substrates during the fabrication of integrated
circuits, a variety of flat panel displays and, to a lesser extent, other
types of electrical and optical components. They are produced in accordance
with product designs provided by customers at strategically located
manufacturing facilities in Asia, Europe, and North America. Additional
information on the Company can be accessed at

    "Safe Harbor" Statement under the Private Securities Litigation Reform
Act of 1995: Certain statements in this release are considered "forward
looking statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. All forward looking statements involve risks and
uncertainties. In particular, any statement contained in this release
regarding the consummation and benefits of future acquisitions, expectations
with respect to the joint venture, the planned fabrication facility, future
sales, financial performance, operating efficiencies and product expansion,
are subject to known and unknown risks, uncertainties and contingencies, many
of which are beyond the control of the Company. These factors may cause actual
results, performance or achievements to differ materially from anticipated
results, performances or achievements. Factors that might affect such forward
looking statements include, but are not limited to, overall economic and
business conditions; the demand and receipt of orders for the Company's
products; competitive factors in the industries and geographic markets in
which the Company competes; changes in federal, state and foreign tax
requirements (including tax rate changes, new tax laws and revised tax law
interpretations); the Company's ability to place new equipment in service on a
timely basis; interest rate fluctuations and other capital market conditions,
including foreign currency rate fluctuations; economic and political
conditions in international markets; the ability to obtain a new bank facility
or other financings; the ability to achieve anticipated synergies and other
cost savings in connection with acquisitions and productivity programs;
uncertainties with respect to the integration and management of a new joint
venture, delays in the construction and equipping of the planned fabrication
facility, the ability to transfer licensed applications to other applications,
the timing, impact and other uncertainties of future acquisitions and
investments; the seasonal and cyclical nature of the semiconductor industry;
the availability of capital; management changes; damage or destruction to our
facilities by natural disasters, labor strikes, political unrest or terrorist
activity; the ability to fully utilize its tools; the ability of the Company
to receive desired yields, pricing, product mix, and market acceptance of its
products; changes in technology; and other risks and uncertainties set forth
in the Company's SEC filings from time to time. Any forward-looking statements
should be considered in light of these factors. The Company assumes no
obligation to update the information in this release.

For further information:

For further information: Photronics, Inc. Michael W. McCarthy,
203-775-9000 Vice President - Corporate Communications

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