ADE Corporation Announces 9% Workforce Reduction; Company Initiatives Directed Toward Attaining Cash Breakeven and Restoring Profitability.

Business/Technology Editors

WESTWOOD, Mass.--(BUSINESS WIRE)--Oct. 8, 2002

ADE Corporation (Nasdaq: ADEX), a leading supplier of wafer measurement and inspection systems for the silicon wafer and magnetics storage industries, announced today that the Company has taken additional steps to reduce its cost structure and cash burn rate amid continued sluggishness in semiconductor-related capital spending.

ADE's Executive Vice President and Chief Financial Officer Brian James stated, "These initiatives include a reduction of approximately 40 employees, or nine percent of ADE's worldwide workforce along with reducing other personnel related expenditures at its principal Massachusetts and Arizona manufacturing and development facilities, as well as other satellite offices. Excluding related non-recurring expenses, these actions should result in nearly $4 million of annual cost improvements."

"Although ADE has reported a substantial increase in orders during the past quarter, we do not see signs of a near-term rebound in semiconductor capital equipment spending. After a thorough review of our operations, we decided that further reducing our workforce was necessary as we continue to focus on returning to cash flow positive operations and sustainable profitability. While this was a difficult decision for us to make, it is a necessary one at this time," said Dr. Chris L. Koliopoulos, ADE's President and Chief Executive officer.

"Despite the hazy near term outlook, the longer term fundamentals of the industry remain solid and ADE is well positioned to benefit from an eventual rebound in related spending. Looking ahead, we believe that ADE has developed an impressive suite of 200mm, bridge and advanced 300mm equipment that will allow ADE to maintain its leading position in the wafer inspection and metrology arena, including our entries into the device, SOi and MRAM markets, " concluded Dr. Koliopoulos.

About ADE Corporation

ADE Corporation is a leading supplier of metrology and inspection systems for the silicon wafer and magnetics storage industries. The Company's systems analyze and report product quality at critical manufacturing process steps and provide quality certification data that is relied upon by semiconductor and magnetics storage manufacturers. The Company's systems also are used in the fabrication of integrated circuits. To learn more about ADE, visit the Company's Web site at www.ade.com.

This news release contains certain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Those statements that make reference to the Company's expectations, predictions, assumptions and anticipations should be considered forward-looking statements. These statements include, but are not limited to, those associated with the extent and potential impact of the Company's cost-cutting initiatives. These statements involve risks and uncertainties including those associated with the strength of the semiconductor and device markets, wafer pricing and wafer demand, the results of its product development efforts, the success of ADE's product offerings to meet customer needs within the timeframes required by customers in these markets, further increases in backlog, the Company's ability to increase gross margins, its visibility, and its predictions of future financial outcomes. Further information on potential factors that could affect ADE Corporation's business is described in the Company's reports on file with the Securities and Exchange Commission, including its Form 10-K for the fiscal year ended April 30, 2002.