Credence Systems Corp (CMOS)

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MILPITAS, CA, Feb 21, 2008 (MARKET WIRE via COMTEX) -- Credence Systems
Corporation (NASDAQ: CMOS), a provider of test solutions for the worldwide
consumer semiconductor industry, announced today that it has entered into a
definitive agreement and closed a transaction to sell its diagnostics and
characterization business to DCG Systems, Inc., an independent company led by
Dr. Israel Niv, the founder of Optonics, Inc. and general manager of Credence's
Diagnostics and Characterization Group from January 2003 to February 2005.

"We are pleased to find a new home for this highly specialized and important
business," said Lavi Lev, president and CEO of Credence. "The products developed
by the Diagnostics and Characterization Group have always been cutting edge, and
are critical for manufacturing process bring-up and diagnostics tasks associated
with advanced semiconductor designs. As Credence focuses on the consumer-based
semiconductor ATE markets, one of our priorities was the continued care of our
DCG customers, and the qualifications of the new management team. We believe DCG
customers will benefit from the focus and experience Israel and his team bring
to the business."

Under the terms of the agreement entered into on February 14, 2008, Credence may
receive up to $10 million for the diagnostics and characterization business,
with $2.5 million, subject to certain adjustments, payable on each of the first
and second anniversaries of the close of the transaction, and the balance
payable on the third anniversary of the close of the transaction contingent on
DCG Systems' achievement of revenue targets. Credence will transfer up to $22
million of book value of assets, including component inventory, fixed assets,
intangibles and various liabilities related to the diagnostics and
characterization business. Credence also will provide reimbursable transition
services for a limited period of time following the closing. In addition,
Credence will fund the fulfillment of approximately $4 million of existing
warranty and service contract obligations through DCG Systems.

Credence closed the transaction with DCG Systems on February 20, 2008. In
connection with its decision to sell the Diagnostics and Characterization Group,
Credence will take a non-cash charge in connection with the terms of the
divestiture of approximately $22 million in the company's just-concluded first
quarter of fiscal 2008. This charge relating to the divestiture is in addition
to anticipated $37-39 million total loss for the first quarter of fiscal 2008,
which includes extraordinary charges totaling approximately $19 million, as
guided in the Company's earnings call for the fourth quarter of fiscal 2007.

"DCG Systems provides the best bridge between the design community and the fab
yield and failure analysis teams with its diagnostic systems and software to
enhance yield ramp, silicon design debug and IC quality," said Dr. Israel Niv,
chief executive officer of DCG Systems. "We intend to focus fully on the
specific needs of our customers as they move to the 45nm technology node and
beyond. We are committed to continuing to provide leading-edge tools,
methodologies and service to our customers in order to meet their ongoing
technology needs."

The newly formed DCG Systems will be headquartered in Fremont, CA, and will
continue to provide leading edge design diagnostics and failure analysis
technologies to key semiconductor companies. Products include the recently
introduced Ruby laser voltage prober, the OptiFIB-IV focused ion-beam system,
the Meridian-IV emission system, and NEXS suite of EDA link software. In
addition, DCG Systems will continue to offer the industry-standard EmiScope,
TriVision and P3X instruments.

About Credence

Credence Systems Corporation (NASDAQ: CMOS) is a global provider of automated
test equipment (ATE) solutions to the high growth, consumer semiconductor
industry. Credence is committed to deliver the highest standards of value -- an
optimal combination of technology, turn-around time, reliability, ease of use,
service and support -- to every customer, which enables important cost and
performance advantages for integrated device manufacturers (IDMs), wafer
foundries, outsource assembly and test (OSAT) suppliers and fabless chip
companies worldwide. An ISO 9001-certified company with a presence in 20
countries, Credence is headquartered in Milpitas, California. More information
is available at http://www.credence.com.

Forward-Looking Statements

This release contains statements that are forward-looking within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, including statements regarding (i)
the payment of the purchase price by DCG Systems to the company; (ii) the belief
that DCG customers will benefit from the focus and experience of a strong
management team, (iii) the critical nature of the mentioned products, (iv) the
charge of approximately $22 million in the Company's recently-concluded first
quarter of fiscal 2008, (v) the Company's anticipated $37-39 million total loss
for the first quarter of fiscal 2008, including restructuring charges, (vi) that
DCG Systems will continue to provide leading-edge design diagnostics and failure
analysis technologies to key semiconductor companies and (vii) that DCG Systems
will continue to offer the industry-standard EmiScope, TriVision, and P3X
instruments. These forward-looking statements involve important factors that
could cause our actual results to differ materially from those in the
forward-looking statements. Such important factors involve risks and
uncertainties including, but not limited to, DCG Systems' ability to
successfully operate the DCG business, unanticipated challenges in assessing
business conditions and the overall market and cyclicality and downturns in the
semiconductor industry, the timing of new technology, fluctuation in customer
demand, timing and volume of orders and shipments, competition and pricing
pressures, and reliability and quality issues. Reference is made to the
discussion of risk factors detailed in our filings with the Securities and
Exchange Commission, including our reports on Form 10-K and 10-Q. All
projections in this release are based on limited information currently available
to us, which is subject to change. Although any such projections and the factors
influencing them will likely change, we will not necessarily update the
information, since we are only to provide guidance at certain points during the
year. Actual events or results could differ materially and no reader of this
release should assume later in the quarter that the information provided today
is still valid. Such information speaks only as of the date of this release.

Credence is a registered trademark and Credence Systems, is a trademark of
Credence Systems Corporation. Other trademarks that may be mentioned in this
release are the intellectual property of their respective owners.





Media Relations Contact:

Brenda Ropoulos

Communications Director

Credence Systems Corporation

Phone: [phone]

FAX: [phone]

E-mail: Email Contact