Praxair Electronics Completes Major Expansions and Improvements to Streamline Delivery of Advanced 300mm Deposition Products

Praxair Electronics Completes Major Expansions and Improvements to Streamline Delivery of Advanced 300mm Deposition Products

October 21, 2003

DANBURY, Conn., October 21, 2003 — To meet growing customer demand for its advanced, 300mm physical vapor deposition (PVD) products, Praxair, Inc. (NYSE: PX) has completed a $19-million expansion program to upgrade and enhance its global manufacturing capabilities, technology development and customer support infrastructure.

In 2002, Praxair Electronics developed and initiated this expansion plan to provide an even stronger, leading-edge 300mm deposition materials portfolio to customers. "This expansion is another example of Praxair’s commitment to enabling advanced 300mm wafer manufacturing and customer productivity," said Mark Gruninger, vice president of Praxair Electronics. "We supply 75 percent of the operating 300mm fabs with 300mm targets, and we are working to increase our share of that market. Therefore, it is imperative that Praxair has the resources to support current customers and future growth."

The expansion, which includes deposition materials production facilities in Toulouse, France, and Orangeburg, N.Y., increases the company's current production capacity by 25 percent, enabling Praxair Electronics to meet forecasted global market demand for 300mm sputtering targets. Facility additions and improvements include new 300mm production equipment; state-of-the-art cleaning and packaging operations; and upgraded clean rooms.

Praxair Electronics also has enhanced the 300mm capability of its deposition materials applications lab in Orangeburg as part of the expansion program. A new, advanced 300mm PVD development system has been installed to test Praxair’s copper and tantalum 300mm targets under fab-like conditions. "The applications lab is now better equipped to help our customers conduct realistic, in-depth performance evaluations of our standard and custom 300mm targets. No other sputtering target manufacturer offers these extensive on-site capabilities," added Gruninger.

In addition, the company has upgraded its facilities to comply with the latest industrial safety, quality and environmental standards. The Toulouse and Orangeburg facilities have received ISO 14001 certification for meeting environmental standards. All three manufacturing facilities within Praxair Electronics’ deposition materials group, including the operation in Ch’onan, Korea, operate under QS 9000 certification for complying with stringent quality standards. In addition, the Toulouse site has received TS16949 certification.

To more efficiently deliver deposition materials products and services, Praxair Electronics has deployed ORACLE® Applications, a leading enterprise-resource-planning (ERP) system, throughout its facilities worldwide. Praxair will use this system to continually improve its ability to quickly handle and respond to customer requests as well as provide the infrastructure to offer e-business solutions in the future.

About Praxair Electronics
Praxair Electronics provides the global semiconductor industry with process consumables, including a full line of gases and materials; sputtering targets and CMP slurries; on-site services; chamber components including electrostatic chucks; and spare parts logistics services. In 2002, Praxair’s sales to the global electronics industry were $420 million. More information on Praxair Electronics is available on the Internet at: www.praxair.com/electronics.

Praxair is the largest industrial gases company in North and South America, and one of the largest worldwide, with 2002 sales of $5.1 billion. The company produces, sells and distributes atmospheric and process gases, and high-performance surface coatings. Praxair products, services and technologies bring productivity and environmental benefits to a wide variety of industries, including aerospace, chemicals, food and beverage, electronics, energy, healthcare, manufacturing, metals and others. More information on Praxair is available on the Internet at www.praxair.com.

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Contact
Media Contact:
Jason Stewart

Email: jason_stewart@praxair.com

Phone: 1-203-837-2448

Investor Relations Contact:
Kelcey Hoyt

Email: kelcey_hoyt@praxair.com

Phone: 1-203-837-2118