PHOTRONICS REPORTS THIRD QUARTER RESULTS.............................................PAGE TWO

     Sales for the first nine months of 2009 were $266.7 million, down 16.5% from the $319.2 million for the first nine months of fiscal 2008. Net loss for the first nine months of fiscal 2009 amounted to $43.2 million, or $1.03 loss per share, which included the impact of consolidation, impairment and warrant charges, as compared to the prior year’s first nine months net loss of $211 million, or $5.07 loss per share which included the impact of impairment charges. Net loss for the first nine months of 2009 included after tax charges of approximately $20.1 million in connection with warrants and the announced restructurings in China and the United Kingdom. Excluding the effect of the aforementioned charges, the Company's adjusted net loss for the first nine months of 2009 was $23.0 million, or $0.55 loss per share.

     Constantine (“Deno”) Macricostas, Photronics’ chairman and chief executive officer commented, “The significant sequential sales growth achieved this quarter encompassed all product lines and technology nodes. The revenue growth was a result of successfully executing our high-end market penetration strategy which was clearly evident during the last few weeks of the quarter. The combination of superior sequential revenue performance coupled with continued management of operating expenses allowed Photronics to achieve an operating profit of $4.2 million, excluding restructuring costs,” concluded Macricostas.

     A conference call with investors and the media to discuss these results is scheduled for 8:30 a.m. Eastern time on Wednesday, August 19, 2009. The live dial-in number is (719) 325-2232. The call can also be accessed by logging onto Photronics’ web site at www.photronics.com.

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Photronics is a leading worldwide manufacturer of photomasks. Photomasks are high precision quartz plates that contain microscopic images of electronic circuits. A key element in the manufacture of semiconductors and flat panel displays, photomasks are used to transfer circuit patterns onto semiconductor wafers and flat panel substrates during the fabrication of integrated circuits, a variety of flat panel displays and, to a lesser extent, other types of electrical and optical components. They are produced in accordance with product designs provided by customers at strategically located manufacturing facilities in Asia, Europe, and North America. Additional information on the Company can be accessed at www.photronics.com.

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements made by or on behalf of Photronics, Inc. and its subsidiaries (the Company). The forward-looking statements contained in this press release and other parts of Photronics’ web site involve risks and uncertainties that may affect the Company’s operations, markets, products, services, prices, and other factors as discussed in filings with the U. S. Securities and Exchange Commission (SEC). These risks and uncertainties include, but are not limited to, economic, competitive, legal, governmental, and technological factors. Accordingly, there is no assurance that the Company’s expectations will be realized. The Company assumes no obligation to provide revisions to any forward-looking statements.

14-2009

PLAB - E

PHOTRONICS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(Unaudited)

PHOTRONICS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)

PHOTRONICS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)