SOITEC : SOITEC ANNOUNCES DECISIONS TAKEN BY ITS BOARD OF DIRECTORS DURING ITS MEETING HELD ON JULY 26th, 2018

 SOITEC ANNOUNCES DECISIONS TAKEN BY ITS BOARD OF DIRECTORS DURING ITS MEETING HELD ON JULY 26^th, 2018

• Reassessment of the fixed part of Paul Boudre's compensation as CEO, effective January 1^st, 2019
• Election of Eric Meurice as Senior Independant Director and Chairman of the Strategic Committee

• Tribute paid to Douglas Dunn, Director from 2004 to 2018

Bernin (Grenoble), France, July 31^st, 2018 - Soitec (Euronext Paris), a world leader in designing and manufacturing innovative semiconductor materials, today announces decisions taken by its Board of Directors during its meeting held on July 26^th, 2018 in Bernin after the close of the Shareholders' General Meeting.

Reassessment of Paul Boudre's compensation

During its meeting held on July 26^th, 2018, the Board of Directors of Soitec has unanimously decided to set the fixed part of the gross annual compensation of Paul Boudre, CEO, to Euros 550,000, effective from January 1^st, 2019. This reassessment was recommended by the Compensation Committee.

Soitec reminds that, as described in paragraph 15.1.4 of its 2017-2018 Registration Document^[1], the Board of Directors expressed its intention to adjust the Chief Executive Officer's compensation, in light of the fact that it had not been reviewed since 2010, and that since then, the Group had experienced significant changes in both business and results. In this regard, the Board of Directors instructed the Compensation Committee to make a recommendation to this end, to take also into account the gap seen against market practices for similar companies.

Soitec adds, for any practical purpose, that the reassessment of the fixed part of the annual compensation of its CEO is compliant with the compensation policy of its corporate executive directors for the 2018-2019 fiscal year arising from the eighth resolution approved by the Company's shareholders on July 26, 2018.

Soitec also notes that this reassessment is consistent with the principles laid down in the AFEP-MEDEF Code, since it is carried out a relatively long time after the CEO's fixed compensation had last been increased.

Moreover, the Board of Directors has decided to implement a key-man insurance policy on Paul Boudre, covering his family in case of decease or permanent disability, by way of payment of a Euros 1.5 million benefit. This key-man insurance policy will be linked to the one benefiting to the Company under the same conditions. The key-man insurance fee corresponding to the part covering Paul Boudre's family will be treated as a benefit in kind paid to the latter in the frame of his compensation policy for the 2018-2019 fiscal year.

Eric Meurice elected as Senior Independent Director to replace Douglas Dunn

During its meeting held on July 26, 2018, the Board of Directors has also elected Eric Meurice as the Company's Senior Independent Director. Moreover, the latter has been chosen by his peers as Chairman of the Strategic Committee and member of the Nomination Committee.

Soitec reminds that the Shareholders' General Meeting held on July 26, 2018 has prior appointed Eric Meurice as Company Director for a 3-year term. The latter succeeds to Douglas Dunn further to the expiry of his Director term at the close of the said Shareholders' General Meeting, due to him having reached an age limit set forth by the Board of Directors Internal Regulation.

The Board of Directors is delighted to welcome Eric Meurice. His experience as a senior executive and executive director of many internationally-renowned technology companies, acquired primarily in the semiconductor industry, the multicultural dimension of his career, and his current experience as a director of international companies, convinced the Board of Directors to select Eric Meurice to succeed Douglas Dunn in his positions, in the high growth context of the Company.

Lastly, the Board of Directors paid an unanimous and strong tribute to Douglas Dunn, to warmly thank him for his active and positive involvement, his efficient contribution to the works of the Board and its Committees, and his regular attendance all along the duration of his fourteen years' term of office.

Eric Meurice's biography

A French national of 62-year old, Eric Meurice is director within the Boards of NXP Semiconductors N.V. since April 2014, IPG Photonics Corp. since June 2014, UMICORE SA since April 2015 and Meyer Burger AG since May 2018.

Previously, Eric Meurice was the Chairman-CEO of ASML Holding N.V., an equipment manufacturer for the semi-conductor industry, from October 2004 to June 2013, and its Chairman until March 2014. Under his leadership, ASML became the world's largest seller of lithography equipment, encouraging its largest customers to make capital and investment commitments unmatched in the industry.

From 2001 to 2004, he was Executive Vice President of Thomson-RCA Television division, which merged the company with the TCL Corporation group, a leading Chinese consumer electronics company.

From 1995 to 2001, he led Western Europe, Eastern Europe, and emerging markets in the EMEA region for Dell Computer.

Before 1995, Eric Meurice acquired significant experience in the industrial and technological fields within ITT Semiconductors, Intel Corporation and Renault SA.

He was also a director of Verigy Ltd. until its acquisition by Advantest Corporation in 2011, and ARM Holdings plc until March 2014.

Eric Meurice graduated from Ecole Centrale de Paris (France), and has a Master's degree in economics from Panthéon-Sorbonne University in Paris (France), and an MBA from Stanford University (California, USA).

Agenda

Q2'19 sales figures are due to be published on October 17^th, 2018, after market close.

About Soitec
Soitec (Euronext, Tech 40 Paris) is a world leader in designing and manufacturing innovative semiconductor materials. The company uses its unique technologies and semiconductor expertise to serve the electronics markets. With more than 3,000 patents worldwide, Soitec's strategy is based on disruptive innovation to answer its customers' needs for high performance, energy efficiency and cost competitiveness. Soitec has manufacturing facilities, R&D centers and offices in Europe, the U.S. and Asia.

Soitec and Smart Cut are registered trademarks of Soitec.

For more information, please visit www.soitec.com and follow us on Twitter: @Soitec_EN

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Soitec is a French joint-stock corporation with a Board of Directors (Société Anonyme à Conseil d'administration) with a share capital of € 62,762,070.50, having its registered office located at Parc Technologique des Fontaines - Chemin des Franques - 38190 Bernin (France), and registered with the Grenoble Trade and Companies Register under number 384 711 909.

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