AMTECH SYSTEMS, INC. Reported a 205% Increase in Operating Income for Fiscal 1996.

TEMPE, Ariz.--(BUSINESS WIRE)--January 7, 1997--AMTECH SYSTEMS, INC. (NASDAQ:ASYS) reported that revenues for fiscal 1996 were $8,414,000, an increase of $1,550,000, or 23%, from the $6,864,000 reported for fiscal 1995. Income from continuing operations was 16% higher in fiscal 1996 than in fiscal 1995, or $198,000, $.05 per share, in the most recent fiscal year, versus $171,000, $.04 per share, in the prior fiscal year. The growth in revenues and income is due primarily to the 90% increase in the sales of horizontal diffusion furnaces developed by the Company and related after market parts, resulting from the continued expansion of the manufacturing operations in The Netherlands.

Net income for fiscal 1996 increased 125% to $509,000, or $.10 per share, from $227,000, or $.06 per share, in fiscal year 1995, due primarily to the gain on the disposal of discontinued operations.

J.S. Whang, the Company's President and CEO, stated, "I am particularly pleased that we were able to increase operating profit from continuing operations by 205% to $121,000 in fiscal 1996, during a period in which we increased expenditures on research and development by 40%, with the goal of securing continued growth for the future."

Cash and short-term investments and stockholders' equity as of September 30, 1996, comprise 53% and 78%, respectively, of total assets. These percentages are indicators of the Company's financial capacity for future growth. Furthermore, the November 30, 1996 backlog is $3,875,000, of which $2,875,000 is expected to be shipped in fiscal 1997.

Amtech Systems, Inc. manufactures capital equipment for use in the production of semiconductors, including the Tempress Systems' horizontal diffusion furnace, ATMOSCAN, an environmentally controlled wafer processing system, IBAL, modular robotic devices which automate the process of wafer loading and unloading, and load stations, which load Tempress and other brands of furnaces. -0-

AMTECH SYSTEMS, INC.

CONDENSED STATEMENT OF OPERATIONS


                                              FOR THE YEARS ENDED
                                                 SEPTEMBER 30,
                                            -----------------------
                                               1996         1995
                                            ----------   ----------
REVENUES                                    $8,414,005   $6,864,068


INCOME FROM CONTINUING OPERATIONS           $  197,591   $  171,053

DISCONTINUED OPERATIONS                         26,757       55,515
GAIN ON DISPOSAL OF ECHELON                    284,335       -
                                            ----------   ----------
NET INCOME                                  $  508,683   $  226,568
                                            ==========   ==========


INCOME PER SHARE:
 FROM CONTINUING OPERATIONS                 $      .05   $      .04
 NET INCOME                                 $      .10   $      .06



CONDENSED BALANCE SHEETS

                                            SEPT. 30,      SEPT. 30,
                                               1996          1995
                                            ----------    ----------
CASH AND EQUIVALENTS                        $1,994,217    $  833,820
SHORT-TERM INVESTMENTS                       2,464,120     3,671,569
ACCOUNTS RECEIVABLE                          1,581,973     2,286,743
INVENTORIES AND PREPAID EXPENSES               786,136       569,463
DEFERRED INCOME TAXES                          223,000       165,000
                                            ----------    ----------
   TOTAL CURRENT ASSETS                      7,049,446     7,526,595

PLANT AND EQUIPMENT - NET                      976,331       649,798
ALL OTHER ASSETS                               432,837       189,126
                                            ----------    ----------
                                            $8,458,614    $8,365,519
                                            ==========    ==========

CURRENT LIABILITIES                         $1,568,994    $1,363,291
LONG-TERM DEBT                                 265,355         --
TOTAL STOCKHOLDERS' EQUITY (Note 1)          6,624,265     7,002,228
                                            ----------    ----------
                                            $8,458,614    $8,365,519
                                            ==========    ==========

Note 1 - Stockholders' equity declined in fiscal 1996 as a result of
         exchanging the shares of Echelon Service Company for shares
         of the Company's $.01 par value common stock.

CONTACT: Robert T. Hass, CFO 

602/967-5146