ASTEX SIGNS TECHNOLOGY DEVELOPMENT AGREEMENT WITH APPLIED MATERIALS.

WOBURN, Mass.--(BUSINESS WIRE)--August 28, 1995--Applied Science and Technology, Inc. ("ASTeX") (Nasdaq:ASTX) today announced the signing of a technology development agreement for approximately $2.5 million with Applied Materials,Inc.(Nasdaq:AMAT).

Dr. Richard Post, President and CEO stated, "ASTeX has been able to create innovative technology and work closely with the semiconductor industry to deliver high quality semiconductor fabrication equipment. Over the years, the Company has developed an excellent relationship with Applied Materials, an effort that has mutually benefited the two companies."

"Future generations of semiconductor chips require new capabilities for processing submicron features", Mr. Post continued. "These new processes will provide the enabling technology for low power, higher speed microprocessors and other semiconductor devices. If successful, this development program will provide a leap ahead in the process technology, enabling chip manufacturers to fabricate semiconductors in ways not now possible."

Under the terms of the agreement, ASTeX will become a supplier of this new fabrication equipment to Applied Materials. Contract funding will be used by ASTeX to offset research and development expenses related to the project rather than being shown as contract revenue.

ASTeX is a leading manufacturer of systems and components for production of advanced materials such as semiconductors and CVD diamond. ASTeX markets its systems to producers of CVD diamond, while its microwave power generators, plasma sources and ozone generators and subsystems are marketed to the world's leading semiconductor capital equipment manufacturers. Typical semiconductor applications include stripping, etching, and CVD.

CONTACT: John Tarrh

Applied Science and Technology, Inc.

Senior Vice President and Chief

Financial Officer

[phone]

or

Investor Relations Contact:

Donna N. Stein, APR 

Morgen-Walke Associates, Inc.

[phone]

or

Press Contact:

Lee Foley

Morgen-Walke Associates, Inc.

[phone]