Photronics Reports Fiscal Year 2007 Results

Sales for the quarter were $101.6 million, down 11.9%, compared to $115.3 million for the fourth quarter of 2006. Semiconductor photomasks accounted for $80.3 million or 79.0% of revenues during the fourth quarter of fiscal 2007, while sales of flat panel display (FPD) photomasks accounted for $21.3 million or 21.0% of revenues. Net income for the fourth quarter of fiscal 2007 amounted to $0.4 million, or $0.01 per diluted share, compared to the prior year's fourth quarter net income of $9.8 million, or $0.21 per diluted share. Sales for the 2007 fiscal year were $421.5 million, down 7.3% from the $454.9 million reported in fiscal 2006. Semiconductor photomasks accounted for $339.4 million or 80.5% of revenues during fiscal 2007, while sales of FPD photomasks accounted for $82.1 million or 19.5%. Year-over-year, semiconductor photomask revenues decreased 4.4%, while FPD photomask revenues decreased 17.8%. Net income for fiscal 2007 amounted to $24.5 million, or $0.56 per diluted share, compared to the prior fiscal year's net income of $29.3 million, or $0.66 per diluted share. Michael J. Luttati, Chief Executive Officer, shared his views of the Company's reported results. "2007 can best be described as a year of transition for Photronics. While there were many external factors outside of our control that influenced performance during the year, we were disappointed with the year-end results. Despite this, we continue our intense focus on implementing strategic actions necessary to position the Company for future growth and believe our actions to be on target. All in all, we have strengthened our position going forward and have set our sights on recording a growth year in 2008." A conference call with investors and the media to discuss these results can be accessed by logging onto Photronics' web site at www.photronics.com, then clicking on the "Conference Calls" button at the top right corner of the home page. The call is scheduled for 8:30 a.m. Eastern time on Wednesday, December 5, 2007, and will be archived for instant replay access until the Company reports its fiscal first quarter results after the market closes on Wednesday, February 13, 2008. The dial-in number is (212) 231-2920.