Tokyo Electron Limited (TEL) carried out a revision of its financial forecast on April 3, 2003 for the fiscal year ended March 2003. In the financial forecast revision, personnel cuts involving around 1,000 employees were announced as a business restructuring measure for the fiscal year ending March 2004 and thereafter. In connection to this, we have decided to solicit voluntary resignations in the manner explained below.

1. Reason for soliciting voluntary resignations
    With the unprecedented recession that started the year before last in the semiconductor and semiconductor production equipment industries in which we operate, TEL, together with its group companies, has been striving to carry out every sort of cost reduction measure, starting with the reduction of expenses and executive compensation, to improve operating efficiency. However, we recognize that these stagnant business results are not only the result of the sluggish market but also the outcome of structural problems, and in order to further increase profitability in the future we consider it essential to thoroughly implement, in a short period of time, drastic reforms in our business structure, including worldwide streamlining of operation bases, as well as lowering fixed costs through personnel cuts involving around 1,000 employees and other measures. For this reason, we decided to solicit voluntary resignations.

2. Overview of soliciting voluntary resignations*
(1) Eligible:	Regular employees under 60 years of age who have worked for the company for over 3 consecutive years as of July 31, 2003
(2) Number solicited:	1)	Tokyo Electron Limited: Around 140 (the current number of employees as of April 1, 2003 is 1,357)
	2)	Consolidated subsidiaries: around 860 (the current number of employees as of April 1, 2003 is 8,806)
		Total: around 1,000 employees
(3) Solicitation period:	From June 10-30, 2003
(4) Resignation date:	July 31, 2003
(5) Preferential measures:		In addition to ordinary retirement payments, special additional funds to be provided
3. The effects of implementing a voluntary resignation system     The cost of the payment of special additional funds is expected to be 7.8 billion yen on a consolidated and 1.5 billion yen on a non-consolidated basis. In order to prepare for this expenditure, the sum has been provided in the financial statements for the fiscal year ended March 31, 2003. In terms of the impact on business results, it is anticipated that the benefits from cost reductions will be 4-5 billion yen in the fiscal year ending March 31, 2004, and around 10 billion yen per annum after March 31, 2005.

*Note: Above information regarding voluntary resignation refers only to activities planned in Japan. However, the reported effect of implementing the voluntary resignation system and number of solicited resignations listed takes into account personnel cuts outside Japan.