A T M I Announces Fourth Quarter and 1999 Financial Results; Revenues Grow 72% as Semiconductor Industry Expansion Accelerates.

Business Editors

DANBURY, Conn.--(BUSINESS WIRE)--Feb. 9, 2000

A T M I, Inc. (Nasdaq: ATMI), today announced that its fourth quarter 1999 revenues of $57.6 million surpassed 1998's fourth quarter sales of $33.5 million by nearly 72%. Excluding one-time charges recognized during the quarter, net income was $7.0 million, compared to breakeven a year ago. Fourth quarter earnings per share - without one-time charges - were $0.25, versus last year's fourth quarter earnings per share of $0.00 restated to include two poolings of interest transactions closed during November 1999. Including one-time charges, A T M I reported earnings of $0.13 per share for the fourth quarter of 1999, compared to break even results in the fourth quarter a year ago.

For the year ended December 31, 1999, A T M I's revenues of $196.2 million were 19% above 1998's $165.1 million. Before one-time charges, earnings per share were $0.68 for 1999 on net income of $19.3 million, compared to 1998's net income of $7.0 million, or $0.26 per share. Including the one-time charges, A T M I reported earnings of $0.37 per share for 1999 compared to $0.18 for 1998.

A T M I's one-time after-tax charges were a net $3.3 million in the fourth quarter of 1999. Charges include $3.1 million in acquisition costs for the MST Analytics and Newform transactions, plus $1.5 million in charges related to the previously announced restructuring of the A T M I Materials Division. These are offset by a tax benefit resulting from a $1.3 million reduction in the Company's valuation allowance for tax loss carryforwards acquired in certain 1999 acquisitions.

Gene Banucci, A T M I CEO, said, &uot;The semiconductor industry is entering an aggressive growth phase. A T M I 's efforts at building market share and accelerating new product introductions during the downturn are being rewarded. We believe the company is well positioned to take further advantage of this upswing, as our customers transition to new materials and demand the full line of products and capabilities that A T M I now offers.&uot;

Dan Sharkey, A T M I CFO, said, &uot;In addition to the market upswing, several key drivers were catalysts for A T M I 's growth in 1999, setting the stage for a promising 2000. In technology, we had a record year in patent awards and new products resulting from those patents. Regionally, we have aggressively expanded our efforts in Taiwan and Europe where significant industry growth is occurring. Financially, our strong balance sheet has enabled the company to expand capacity at a rapid rate. Finally, we've been very aggressive during 1999 - with five synergistic acquisitions. They have served to expand our market presence in line with our strategy to be the preeminent supplier of value-added materials solutions to the worldwide semiconductor industry.&uot;

A T M I provides specialty materials and related equipment and services to the worldwide semiconductor industry. Related equipment includes materials packaging systems, delivery systems, sensors, and a full line of environmental equipment. Services include materials management, equipment servicing, and thin film deposition.

Statements which are not historical information are forward looking, and involve risks and uncertainties, including, but not limited to: changes in semiconductor industry growth or A T M I's markets; competition, problems, or delays developing and commercializing new products; problems or delays in integrating acquired operations and businesses into A T M I; and other factors discussed in A T M I's filings with the Securities and Exchange Commission. Such risks and uncertainties could cause actual results to differ from those projected.

http://web.atmi.com

                              ATMI, INC.
                     SUMMARY FINANCIAL INFORMATION


                        Three Months Ended          Year Ended
                           December 31,            December 31,
                         1999       1998        1999         1998

Revenues             $57,618,000 $33,452,000 $196,236,000 $165,106,000
Cost of revenues      26,887,000  16,494,000   92,970,000   83,419,000
Gross profit          30,731,000  16,958,000  103,266,000   81,687,000
Operating expenses
 R &D                 4,865,000   4,053,000   18,359,000   16,630,000
 S, G, &A            16,145,000  13,682,000   58,005,000   56,523,000
                      21,010,000  17,735,000   76,364,000   73,153,000
Operating income       9,721,000    (777,000)  26,902,000    8,534,000
Other income           1,417,000   1,192,000    3,578,000    2,915,000
Income before taxes   11,138,000     415,000   30,480,000   11,449,000
Income taxes           4,121,000     375,000   11,212,000    4,412,000
Net income (loss) before
one-time charges       7,017,000      40,000   19,268,000    7,037,000

One-time merger and
other costs, net
of tax                 3,263,000           0    8,722,000    2,102,000

Net income           $ 3,754,000    $ 40,000 $ 10,546,000  $ 4,935,000

Diluted earnings
per share before
one-time charges            $.25        $.00         $.68         $.26

Diluted earnings
per share                   $.13        $.00         $.37         $.18

Weighted average
shares outstanding    28,467,000  27,956,000   28,319,000   27,423,000

Detail of one-time merger
and other costs:
Transactions costs   $ 3,114,000         $ 0  $ 9,914,000  $ 1,702,000
Severance/
restructuring          2,300,000           0    2,300,000      400,000
Tax benefit of merger
and severance charges   (851,000)          0   (2,192,000)           0
Elimination of tax
valuation allowance   (1,300,000)          0   (1,300,000)           0
                     $ 3,263,000         $ 0  $ 8,722,000  $ 2,102,000


                              ATMI, INC.
                     SUMMARY FINANCIAL INFORMATION

Balance Sheet Highlights       December 31,   December 31,
                                   1999           1998
Assets
   Cash &marketable securities $ 92,174,000  $  86,169,000
   Accounts receivable            39,462,000     25,708,000
   Inventory                      21,732,000     19,216,000
   Other current assets           10,394,000      7,979,000
     Total current assets        163,762,000    139,072,000
   Fixed assets, net              54,675,000     54,683,000
   Other assets                    8,462,000     12,355,000
     Total assets              $ 226,899,000   $206,110,000

Liabilities and stockholders' equity
   Short-term debt              $  6,318,000  $  11,889,000
   Accounts payable &accrued
    expenses                      27,614,000     23,133,000
   Other current liabilities       6,522,000      1,972,000
     Total current liabilities    40,454,000     36,994,000
   Other long-term liabilities    12,702,000     15,550,000
   Minority interest               1,109,000        846,000
   Stockholders' equity          172,634,000    152,720,000
     Total liabilities &
     stockholders' equity      $ 226,899,000   $206,110,000