ADE Corporation Bolsters its Balance Sheet Through Real Estate, Investment Initiatives; Company Ends First Quarter of Fiscal '04 With More Than $30 Million in Cash.

Business Editors/High-Tech Writers

WESTWOOD, Mass.--(BUSINESS WIRE)--Aug. 7, 2003

ADE Corporation (NASDAQ: ADEX), a leading supplier of production metrology and inspection systems for the silicon wafer, semiconductor device, magnetic storage and optics manufacturing industries, today announced additional steps that the Company has taken to enhance its capital position. As reported in the ADE Corporation's 10-K filing for the year ended April 30, 2003, the Company entered into two agreements that enabled it to close the first quarter of fiscal 2004 ended July 31, 2003 with more than $30 million in cash.

The Company recently entered into an agreement to sell and leaseback its headquarters site in Westwood, Massachusetts and received proceeds of $10.1 million. ADE Corporation used proceeds from the transaction to retire its 1996 industrial development bond and eliminate a letter of credit associated with the bond. The Company also used approximately $3.0 million of the proceeds to retire its 1997 industrial development bond, which resulted in $3.2 million of previously restricted cash becoming available for general corporate purposes. As part of this transaction, ADE Corporation entered into a long-term lease agreement of its Westwood facility.

ADE Corporation also recently entered into an agreement to sell the majority of its 50% ownership in Japan ADE, Ltd. (JAL) to Kanematsu Electronics, Ltd., the other 50% owner of Japan ADE Ltd. The Company received proceeds of approximately $4.0 million and will retain a 9% ownership in JAL. In addition, on July 10, 2003, the Company received approximately $1.0 million as a dividend payment from JAL.

"These agreements are part of a series of financial strategies that we have put into place to strengthen ADE's financial position," stated Dr. Chris L. Koliopoulos, president and CEO of ADE Corporation. "During the past year, we have cut costs and enhanced our operating efficiency. At the same time, we have maintained our technology leadership, grown revenues and returned to profitable, cash-flow-positive operations. ADE has turned the corner from a financial perspective and is now a stronger, better-positioned organization that has ample resources to build further shareholder value."

ADE Corporation expects to report financial results for the first quarter of fiscal 2004 after the market close on Tuesday, September 2, 2003.

Webcast Reminder

ADE Corporation will be participating in Adams, Harkness & Hill's 23rd Annual Summer Seminar, being held at the Marriott Long Wharf Hotel in Boston, Massachusetts. Dr. Koliopoulos and Executive VP and Chief Financial Officer Brian James will present at 10:00 a.m. (ET) today, August 7, 2003. At the conference, management will discuss the Company's recent financial successes and its growth strategy. The presentation will be Webcast live. To access the Webcast, visit the "Investor Information" section of ADE's Web site (www.ade.com) and click on the "Adams, Harkness & Hill's 23rd Annual Summer Seminar" link at least 15 minutes prior to the scheduled start time to download the necessary software.

About ADE Corporation

ADE Corporation is a leading supplier of metrology and inspection systems required for production in the silicon wafer, semiconductor device, magnetic data storage and optics manufacturing industries. The Company's systems analyze and report product quality at critical manufacturing process steps for yield enhancement, providing quality certification data that is relied upon by semiconductor wafer, device and computer disk manufacturers. The Company's systems also are used for production measurements in the semiconductor chip fabrication process. To learn more about ADE, visit the Company's Web site at http://www.ade.com.

Safe Harbor 

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, beliefs, assumptions and anticipations should be considered forward-looking statements. These statements include, but are not limited to, those associated with the manner in which the Company leverages proceeds from its sale-leaseback and sale of ownership in Japan ADE, Ltd. as well as the Company's long-term business prospects. These statements involve risks and uncertainties including those associated with wafer pricing and wafer demand; the results of its product development efforts; and the success of ADE's product offerings to meet customer needs within the timeframes required by customers in these markets. 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, 2003.