MICROPHASE LABORATORIES

Microphase Laboratories, Inc. is located in Colorado Springs, Colorado, had sales in excess of $2 million during 1994 and employs 28 people. Since its inception, Microphase focused on the large area mask market, and supported traditional integrated circuit mask customers. Over time, Microphase has successfully developed proprietary lithography, inspection, and repair systems and processes for the production of large area masks. Photronics will incorporate Microphase's facility, technologies and processes into its manufacturing network and expand on them as the demand for large area masks increases in the future. It is expected that the acquisition will have a minimal near-term effect on sales and earnings.