Cabot MMD To Expand CMP Slurry Production Facility in Wales by 100 Percent; Additional Production Line to Meet

MUNICH, GERMANY (April 13) BUSINESS WIRE -April 13, 1999--Cabot Corporation's Microelectronics Materials Division (MMD), the leading global supplier of chemical mechanical planarization (CMP) slurries, today announced it will begin expansion of its manufacturing facility in Barry, Wales, with the addition of a new CMP slurry production line. The expansion, scheduled for completion by the end of May 1999, will increase production capacity of Cabot's full suite of CMP slurry products by approximately 100 percent at the Barry facility.

According to market analyst Dr. Robert N. Castellano of The Information Network, semiconductor manufacturers in Europe continue to aggressively pursue leading-edge process technology, and the quest for 300 mm capacity further demonstrates this commitment. Similarly, CMP -- critical to the success of tungsten and emerging copper processes -- is being fervently adopted by European chipmakers. Castellano stated, "Cabot's historical lead in oxide slurries is undisputed. Despite the increasing competition in metal polishing applications, Cabot's investment in new products and manufacturing capacity has resulted in a leadership position there as well." Castellano added, "The growth of tungsten CMP processes in Europe has helped fuel Cabot's growth and incited the expansion of its Welsh facility."

As semiconductor manufacturers ramp their fabs for advanced wafer production, Cabot's CMP slurries play an increasingly critical role in enabling chipmakers to achieve improved productivity and wafer uniformity, especially for volume production of 0.18-micron and below devices. Commenting on the significance of Cabot's expanding global infrastructure, Clive Jenkins, plant manager for the Barry dispersions facility, stated, "With the strong indications that the European semiconductor market is once again gaining momentum, Cabot is committed to expanding its infrastructure to address the requirements of chipmakers in this important region." Jenkins added, "The expanded facility will further enable us to anticipate and accommodate our customers' needs as they ramp next-generation wafer production."

The expansion of the Barry facility, originally established in 1995, demonstrates Cabot MMD's continuing investment in broadening its infrastructure to support its growing global customer base ahead of market demand. In January, Cabot established its direct manufacturing presence in Japan with the completion of a new 4,000-square-meter slurry production facility in Geino, Mie Prefecture. Last October, Cabot announced a groundbreaking of a new headquarters in Aurora, Ill., which will be completed in August 1999.

About Cabot MMD: Cabot Corporation's Microelectronics Materials Division (www.cabot-corp.com/mmd), Aurora, Ill., is the leading global supplier of CMP slurries for polishing oxide, tungsten, copper and aluminum used in semiconductor manufacturing processes. Cabot MMD is a division of Cabot Corp. (www.cabot-corp.com). Headquartered in Boston, Mass., Cabot is a global performance materials company that specializes in the manufacture of fine particles for the automotive, industrial, construction, semiconductor, coatings, inks and energy markets. Cabot had revenues of $1.67 billion in 1998. Its common stock is traded on the New York Stock Exchange under the symbol CBT.

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CONTACT: Rick Foster

          Cabot Corporation 

Microelectronics Materials Division

          630/585-9471, ext. 241 

or

          Dori Jones 

MCA

          650/968-8900 

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