Soitec announces the acquisition of Tracit Technologies

Bernin, France, June 8, 2006 - Soitec (Euronext Paris), the world’s leading supplier of silicon-on-insulator (SOI) wafers and other engineered substrates, today announced the conclusion of an agreement to acquire all the shares of TraciT Technologies, a company based in Grenoble, France. TraciT Technologies specializes in thin-film layer transfer technologies that leverage molecular adhesion and mechanical, as well as chemical, thinning processes for the production of micro-electro mechanical (MEMS) and power circuits. This strategic acquisition will expand the Soitec Group’s intellectual property, particularly in highly complementary areas. With TraciT, Soitec enters new electronic markets, thanks to fully-processed electronic circuits transfer technology, which has short-term applications for wafer-level packaging.

A spin-off from the CEA-Léti, TraciT Technologies was formed in 2003 to develop and industrialize innovative substrate technologies. The company is focused on technologies that enable embedding functions at the substrate level, and create entirely new structures through the transfer of fully-processed wafers onto different supports. Following an initial development phase, TraciT Technologies, with its confirmed potential growth, has to quickly move to production to satisfy the needs of its customers in Europe, North America and Asia.

'The proximity and complementary nature of TraciT Technologies’ activities on advanced materials and the similarity of our corporate cultures are reassuring our strategic interest of a merger, which will help drive the acceleration of promising development of TraciT Technologies inside the Soitec group,' said André-Jacques Auberton-Hervé, president and CEO of the Soitec group.

'The backing of the Soitec Group will give us the resources we need to accelerate our development and satisfy our customers,' added Bernard Aspar, founder and chairman of TraciT Technologies. 'Our joint research efforts on complementary SOI segments should allow us to achieve breakthroughs relevant to the entire semiconductor industry.'

TraciT Technologies has been backed by its financial shareholders, ACE Management, Emertec and CEA Valorisation. The authorization to issue new shares, as compensation for the contribution of the current TraciT Technologies shareholders, is subject to approval of the Soitec shareholders during its next shareholders’ meeting scheduled to take place on July 6, 2006.

About The Soitec Group:
The Soitec Group is the world’s leading innovator and provider of the engineered substrates that serve as the foundation for today’s most advanced electronic products and nanotechnologies. Headquartered in Bernin, France, the company manufactures its comprehensive portfolio of engineered substrates, including silicon-on-insulator (SOI) and strained SOI (sSOI), using Soitec’s proprietary Smart Cut™ technology—the de facto industry standard. With its strong global presence, patented technology and industry-leading production capacity, Soitec is helping to drive the performance and power advantages that are key to the smaller, more power efficient, and increasingly mobile electronic products favoured by consumers worldwide. Both shares and convertible bonds are listed on Euronext Paris.

Soitec, Smart Cut and UNIBOND are trademarks of S.O.I.TEC Silicon On Insulator Technologies
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Tracit Technologies (Acquired by Soitec)
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