The Probe Card Market Update, 2004, VLSI Research, Cites Gains by Company Focused on Customers’ Performance Testing Challenges

LIVERMORE Calif. – May 5, 2005 – FormFactor, Inc. (Nasdaq: FORM), a leading provider of advanced wafer probe cards, today announced VLSI Research, an independent semiconductor industry analyst firm, confirmed FormFactor’s steady advances in wafer test performance and commitment to reducing customers’ total cost of test helped increase revenue share for the company’s products. In 2004, FormFactor earned 26 percent of the total probe card market compared to 20 percent in the year before – and accounted for 52 percent of the advanced probe card market. According to The Probe Card Market Update, 2004 released by VLSI Research, FormFactor achieved these gains while the overall semiconductor test probe card market segment grew by 42 percent in the same period.

FormFactor’s increase in revenue share is reflected in its fiscal 2004 revenue growth, which was in excess of 80 percent to $177.8 million. The Company’s innovative technology vastly increases the parallelism of wafer probe card test capabilities, helping semiconductor manufacturers maximize test throughput and cost-effectiveness. From the new 300 mm wafer format to ever-smaller product architectures, semiconductor manufacturers face significantly greater demands on their performance testing capabilities. FormFactor wafer probe cards are manufactured in an advanced manufacturing facility dedicated to this technology.

“The Probe Card Market Update, 2004 reflects the customer demand we see for our products, as FormFactor is the only major manufacturer that grew revenue share in 2004 in both the overall and advanced probe card market segments. Our growth is the result of our ongoing efforts to scale our manufacturing process, to deliver quality products and to provide world-class customer service,” said Igor Khandros, chief executive officer, FormFactor. “The VLSI report indicates that in 2004 the semiconductor test probe card market segment grew faster than the semiconductor IC market. As a technology and product leader, our wafer probe cards continue to enable our customers to realize significant cost reductions in wafer test and total production costs. With our strategic investments in research and development and manufacturing, and our expansion of worldwide service and support operations, we continue to deliver superior wafer test products and solutions to customers who rely on FormFactor to test next-generation products and optimize their wafer test strategies.”