KLA Tencor Overview February 2007

6/30/20152 Vision and Strategy : Extend our leadership as the world’s best Inspection & Metrology company with differentiated technical solutions and customer experience. K KLA-Tencor Corporate Overview Wafer Inspection and Metrology Global Leader

6/30/20153 KLA-Tencor Markets Corporate Highlights  Global leader in yield acceleration since 1976  Installed base ~ 20,000 tools  > 6200 employees  > 3,300 technical personnel in 18 countries  Cumulative R&D investments over $1.2 B over last 4 years  2006 revenue: >$2.0 B

6/30/20154 Reticle inspection: Finding the errors before they print Wafer inspection: Finding the process defects that kill yields Metrology: Finding the errors that decrease device performance Analysis software: Turning data into actionable information #1 KLA 75-80% #1 KLA 75-80% #1 KLA 75-80% #1 KLA 40-45% KLA-Tencor Market Leadership

6/30/20155 KT Technical Leadership  DUV, UV, and visible optics  Electron optics  Image sensors  Illumination systems  High speed data processing  Advanced algorithms  Precision motion control Innovation Driven by Heavy R&D Investment  High level of R&D spending compared with competitors  Consistent R&D spending throughout market fluctuations  Enables hiring and retention of world-class development teams % Total Revenue Spent on R&D

6/30/20156 KLA Tencor Israel Highlights  Established in 1986 in Migdal Ha’Emek  > 250 employees  Business Division:  Overlay Metrology  Engineering & Development :  Overlay Metrology  KT Common Platform  Integrated Metrology  Corporate SW  Optical Film SW Development  Operations  Manufacturing services to multiple products  Service & Support