AG Associates Moves to New Headquarters: Total Work Space is Increased by Almost 40 Percent, New Facility Houses Larger Manufacturing Area, Class 1,000 to 10,000 Cleanrooms.

SAN JOSE, Calif.--(BUSINESS WIRE)--Nov. 14, 1995--AG Associates (NASDAQ:AGAI), the leading supplier of advanced, single-wafer rapid thermal processing (RTP) equipment and support services, announced today that it has moved its world headquarters into an expanded facility in San Jose, California, five miles from its previous Sunnyvale location.

"This past fiscal year we have experienced phenomenal growth and stellar financial performance spurred by the company's strong bookings," said Dr. Arnon Gat, AG Associates chairman and CEO. Gat added that the company's rate of growth made it imperative to move to a larger facility.

For fiscal 1995, the company's net sales of $62.7 million represented an increase of 56 percent from 1994. In addition, staffing increased by over 100 percent during fiscal year 1995.

The newly renovated facility is located at 4425 Fortran Drive, San Jose, California. Total space has increased from 70,000 to 115,000 square feet. Manufacturing capacity has increased by 50 percent, with space available for substantial future expansion. In addition, Class 1,000 to 10,000 cleanroom space has been built for manufacturing final testing. Applications laboratory space has increased over 30 percent, and includes Class 100 cleanroom environments, as well as Class 1 to Class 10 at the tool level.

"The addition of cleanroom space for testing systems will immediately improve our ability to provide outstanding products to our customers, and will support the introduction and shipment of advanced products," said Derek Tomlinson, vice president, sales. "This move will also facilitate the continuation and acceleration of the rate of improvement that has characterized AG's operations," he noted.

The larger site will enable the company to bring on board key personnel necessary to support the growth of its installed base and respond to rapidly increasing interest from customers for AG Associates leading RTP systems.

"The facility will better equip us to take the company to new heights of success in the coming years," said Gat. "The move underscores our commitment to customer satisfaction as we continue to provide superior service and support, and accelerate the development of new product features and next-generation technology."

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Note to Editors: AG Associates is a global growth company and world's largest supplier of rapid thermal processors (RTP). The company offers process and demonstration services in San Jose, California and Japan. Founded in 1981, AG Associates is traded on the NASDAQ National Market System under the symbol AGAI.

CONTACTS: AG Associates

Cheri Salazar, 408/935-2000

or

The Benjamin Group, Inc.

Alexander Braun, 408/559-6090