August Technology has terminated its May 2002 purchase agreement with Semiconductor Technologies and Instruments (STI) (Texas) and ASTI Holdings Limited (Singapore) to acquire the Texas-based STI wafer inspection business. August Technology says it terminated the agreement

"While we were eager to execute on the transaction, additional due diligence
performed subsequent to the signing of the purchase agreement made it clear
that it was in the best interests of our customers, employees and other
stakeholders to terminate the ongoing negotiations and part ways at this
time," says Jeff O'Dell, chairman and CEO of August Technology.
August Technology says that ASTI and STI may dispute the termination of the
agreement. August is also demanding a termination fee, which ASTI may again
dispute. Indeed, ASTI may assert that August Technology is obligated to pay
a fee. August Technology intends to close the matter and does not intend to
pursue any further negotiations on completing the transaction.

Amkor Technology reports that Texas Instruments, Dongbu and Anam
Semiconductor (ASI) have been unable to come to terms on a letter of intent
regarding technology transfer and manufacturing and purchase agreements. The
execution of the letter of intent was a condition precedent to the
shareholders agreement between Amkor and Dongbu, under which Dongbu agreed
to purchase 20mn shares of ASI's common stock from Amkor. Amkor and Dongbu
are in continued discussions to explore ways in which the share purchase
transaction may still be completed.