ASTeX announces record fourth quarter and fiscal 1995 year end revenues and earnings.

WOBURN, Mass.--(BUSINESS WIRE)--Aug. 10, 1995--Applied Science and Technology, Inc. ("ASTeX") (Nasdaq:ASTX) today reported record results for the fourth quarter and fiscal 1995 year ending July 1, 1995.

Revenues for the fourth quarter rose by 63% to a record $6.51 million, compared to the $3.99 million reported in the same period last year. Net earnings for the quarter increased 71% to a record $385,000, or $0.10 per share, versus $225,000, or $0.06 per share, in the comparable fourth quarter of 1994. These results include additional costs associated with new product introductions offset by a lower tax rate for the year due to increased R&D tax credits.

Revenues for the year ended July 1, 1995, grew to $20.00 million, a 50% increase over the $13.36 million reported in the prior year. Net earnings for the year increased to $1.13 million, or $0.29 per share, a 117% increase over the $518,000, or $0.15 per share, achieved in fiscal 1994.

Dr. Richard Post, President and Chief Executive Officer, stated that, "Our record revenues and earnings continue to validate our success in developing new and innovative products for the semiconductor equipment market and our progress in the CVD diamond marketplace. During the 1995 fiscal year, we advanced our existing relationships with a number of the world's leading Semiconductor Capital Equipment Manufacturers (SCEMs), while at the same time adding a number of significant new customers in this market. We continue to focus on customer solutions by initiating joint development projects with lead customers, as well as by internally developing advanced new products to meet their needs. Due to our close alliance with our customers, our products are increasingly being designed into additional models of etch, strip, CVD and wet processing systems that are offered by these companies. We continue to believe that by creating value for our customers,we will continue to create value for our shareholders."

Dr. Post continued, "New product introductions are expected to add to our continued success going forward. During the past year, the Company successfully released three new ozone generator models specifically for semiconductor CVD, strip, and wet processing applications. In addition, we successfully completed the development of two new turn-key ozone delivery systems. These systems offer added value for our customers due to their integration of multiple ozone generators, safety and concentration monitoring, gas handling and flow control, and computer control and power distribution subsystems. We are also just introducing three exciting new products which will continue to expand our customer base and range of semiconductor process applications for which our equipment is used. By new product introductions and by forward integration of our products, we expect to continue to strengthen our position within the SCEM industry."

During fiscal year 1995, the Company successfully penetrated the Japanese market with sales of several CVD diamond deposition sources and systems. The Company continues to see growth in the CVD diamond marketplace, with a number of systems to be delivered in the first half of fiscal 1996. Interest in the Company's CVD diamond products is emanating primarily from Europe and Asia.

Dr. Post continued, "To accommodate our growth, the Company has signed an agreement to lease an additional 30,000 sq. ft. adjacent to our current Woburn, Massachusetts headquarters. Approximately 7,000 sq. ft. of the additional space will be used for a new ozone production facility, requiring an estimated investment of $1.0 million. In addition to growing our manufacturing capabilities, we have recently implemented a reorganization of our business along product lines rather than business units. We will now be able to increase our customer focus and strengthen our internal processes."

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, CVD and physical vapor deposition. -0-

           APPLIED SCIENCE AND TECHNOLOGY, INC. AND SUBSIDIARIES
                   CONSOLIDATED STATEMENTS OF OPERATIONS

                      Three Months Ended        Twelve Months Ended
                      July 1,     July 2,       July 1,      July 2,
                       1995        1994          1995         1994
                    (unaudited) (unaudited)

Product sales, net  $ 5,905,394  $3,541,558  $17,157,756  $11,485,420
Research contract
 revenue                410,497     301,397    2,138,332    1,180,659
Other revenue           192,599     148,400      708,765      691,392
Total revenue         6,508,490   3,991,355   20,004,853   13,357,471

Cost of sales and revenue:
Product sales and
 other revenue        4,090,476   2,077,071   10,868,160    6,597,737
Research contracts       86,741     172,302      945,072      650,701
 Total cost of sales &
  revenue             4,177,217   2,249,373   11,813,232    7,248,438

  Gross profit        2,331,273   1,741,982    8,191,621    6,109,033

Operating expenses:
 Research and development
 expenses               721,119     613,947    2,839,986    2,433,928
 Selling expenses       706,062     481,573    2,375,459    1,569,039
 General and administrative
  expenses              728,494     550,822    2,177,221    1,747,956
 Total operating
  expenses            2,155,675   1,646,342    7,392,666    5,750,923
 Earnings from
  operations            175,598      95,640      798,955      358,110

Other expense (income):
 Interest expense            -0-         50          960       15,626
 Interest income       (213,890)   (150,806)    (744,751)    (345,050)
 Other expense            4,687      21,162       13,998       12,493
 Total other (income)
  expense              (209,203)   (129,594)    (729,793)    (316,931)
 Earnings before income
  taxes                 384,801     225,234    1,528,748      675,041

Income tax expense           -0-         -0-     401,000      157,000

     Net earnings    $  384,801  $  225,234  $ 1,127,748   $  518,041

Net earnings per share:
  Primary            $     0.10  $     0.06  $      0.29   $     0.15
  Fully diluted      $     0.10  $     0.06  $      0.28   $     0.15

Weighted average common
 shares outstanding
  Primary             3,924,000   4,070,500    3,906,800    3,433,800
  Fully diluted       3,950,000   4,070,500    3,992,100    3,433,800
-0-

            APPLIED SCIENCE AND TECHNOLOGY, INC. AND SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS

Assets
                                    July 1, 1995       July 2, 1994

Current assets:
  Cash and cash equivalents           $2,303,645        $13,966,669
  Short-term investments               9,253,545            754,778
  Trade receivables, net               4,531,789          3,237,376
  Inventories                          4,179,644          3,803,797
  Prepaid expenses and other assets      157,440            153,304
  Deferred income taxes                  327,380            202,704

 Total current assets                 20,753,443         22,118,628

Property and equipment:
  Equipment                            4,146,421          2,989,772
  Furniture and fixtures                 209,029            198,511
  Leasehold improvements                 651,908            563,934
                                       5,007,358          3,752,217
 Less accumulated depreciation and
  amortization                        (2,096,325)        (1,491,618)
Net property and equipment             2,911,033          2,260,599

Other assets:
  Patents,net                            101,017             83,561
  Other,net                               51,664            106,784
  Long-term Investments                  973,110                -
  Note receivable                        287,267                -
 Total other assets                    1,413,058            190,345
                                     $25,077,534        $24,569,572

Liabilities and Stockholders' Equity

Current liabilities:
  Accounts payable                    $1,687,383         $1,384,439
  Accrued expenses                       421,799            386,412
  Accrued compensation expense and
     related costs                       615,027            431,357
  Accrued income taxes                   228,835            184,551
  Commissions payable                    129,343             33,925
       Total current liabilities       3,082,387          2,420,684
Deferred income taxes                    101,383             45,145
 Total liabilities                     3,183,770          2,465,829

Stockholders' equity:
  Common stock                            43,637             43,542
  Additional paid-in capital          21,279,929         21,224,387
  Retained earnings                    2,091,317            963,569
  Less Treasury stock at cost         (1,446,619)           (33,255)
       Notes receivable for common
       stock purchases                   (74,500)           (94,500)
 Total stockholders' equity           21,893,764         22,103,743
                                    $ 25,077,534      $  24,569,572

CONTACT: Applied Science and Technology, Inc.

John Tarrh, Sr. V.P. and CFO, 617/937-5135

or

Morgen-Walke Associates Inc.

212/850-5600

Investor Relations Contact: Donna N. Stein, APR

Press Contact: Lee Foley