ATMI Reports First Quarter Financial Results.

Business Editors

DANBURY, Conn.--(BUSINESS WIRE)--April 18, 2001

Revenues Up 23% Over 2000 On Strong SDS(R) and Packaging Sales

ATMI, Inc. (Nasdaq: ATMI) today announced revenues grew 23% to $77.3 million for the first quarter, compared with $63.0 million for the same period last year. First quarter net income, before one-time gains, restructuring, and other charges, was $7.9 million, or $0.26 per share, a 6% decline from $8.4 million, or $0.29 per share a year earlier. Including a net after-tax charge of $4.9 million in the current quarter, net income was $3.0 million, or $0.10 per share. On a sequential basis, revenues dropped 11%, from $86.8 million in the fourth quarter of 2000, and net income -- before one-time items -- dropped 25% from $10.8 million, or $0.35 per share.

Gene Banucci, ATMI CEO, said, "We are quite encouraged by several aspects of our performance during the first quarter of 2001, which will probably recognized as the first full quarter of this semiconductor industry downturn. First, our consumable products, like the SDS(R) Gas Source and our high-purity packaging, held up quite well with record quarters in both revenues and operating profit. Second, we are encouraged by our progress in both 300mm and advanced interconnect projects around the world. We believe that once the marketplace stabilizes, these product lines will provide extraordinary growth opportunities. Finally, following on our previously announced initiative, we have begun our restructuring efforts at ATMI, which has generated early sequential declines in SG&A expense in the first quarter, but should show more meaningful expense savings in the coming quarters. We previously indicated we would have to take a net restructuring charge on the order of $6 million, however with certain offsetting items, the net charge is $4.9 million."

"Unfortunately, there is no escaping an industry downturn of this magnitude, whether you are a device manufacturer, equipment supplier, or materials supplier. We now anticipate the next two quarters will be weaker than originally forecast. Based on present chip production levels and our customers' order patterns, we believe that during the second quarter we will experience another 10-20% revenue decline -- some of it from our consumables products -- which should put earnings per share into a $0.10-$0.16 range for the quarter. Based on the same data, the third quarter should be relatively flat, with the fourth quarter showing a marked upturn."

Dan Sharkey, ATMI Chief Financial Officer, said, "Growth in our SDS Gas Source and our packaging product lines helped to offset some of the declines in our liquid materials and delivery systems businesses. Even so, our Materials segment declined 6% sequentially, to $37.2 million. Within our Technologies segment, stability in our Services businesses helped to counterbalance the substantial decline in our Systems product lines. Technologies' revenues of $40.1 million were off 15% from fourth quarter levels. During the first quarter, we terminated our Emosyn agreement with Swatch. The termination essentially precludes second quarter revenues, but longer term will move Emosyn's gross margin and profit profile more towards those of a standard fabless semiconductor business model."

"Finally, our restructuring is effectively speeding the rationalization of multiple businesses acquired over the last several years. We anticipate a net loss of 10% of our employee base as a result. Our $4.9 million net after-tax charge represents previously announced restructuring costs, offset by certain one-time gains recognized in the first quarter."

ATMI provides specialty materials and services to the worldwide semiconductor industry.

Statements contained herein that relate to ATMI's future performance, including, without limitation, statements with respect to ATMI's anticipated results of operations or level of business for 2001 or any other future period, are forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on current expectations only and are subject to certain risks, uncertainties, and assumptions, including, but not limited to: changes in semiconductor industry growth or ATMI's markets; competition, problems, or delays developing and commercializing new products; problems or delays in integrating acquired operations and businesses into ATMI; problems or delays associated with any restructuring activity; and other factors discussed in ATMI's filings with the Securities and Exchange Commission. Such risks and uncertainties could cause actual results to differ from those projected. ATMI undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

http://web.atmi.com

                    SUMMARY FINANCIAL INFORMATION

                                            Three Months Ended
                                                 March 31,
                                         2001                  2000
                                         ----                  ----
Revenues                              $77,280,000          $63,027,000
Cost of revenues                       37,795,000           29,729,000
                                       ----------           ----------
Gross profit                           39,485,000           33,298,000
Operating expenses
  R & D                                 7,921,000            5,984,000
  S, G, & A                            20,679,000           14,884,000
                                       ----------           ----------
                                       28,600,000           20,868,000
                                       ----------           ----------
Operating income                       10,885,000           12,430,000
Other income                            1,488,000              993,000
                                        ---------              -------
Income before taxes                    12,373,000           13,423,000
Income taxes                            4,454,000            4,995,000
                                        ---------            ---------
Net income from operations              7,919,000            8,428,000

Net one-time items, including
restructuring, net of tax              (4,878,000)                   0
Net investment gains, net of tax                0            5,210,000
                                                -            ---------

Net income                             $3,041,000          $13,638,000
                                       ==========          ===========

Diluted earnings per share before one-
time items                                  $0.26                $0.29

Net income per share - diluted              $0.10                $0.47

Weighted average shares outstanding    30,532,000           29,315,000


Balance Sheet Highlights                March 31,         December 31,
                                         2001                2000
                                       ----------         ------------

Assets
   Cash & marketable securities     $ 107,110,000         $131,505,000
   Accounts receivable                 69,474,000           70,282,000
   Inventory                           42,651,000           39,404,000
   Other current assets                20,453,000           16,232,000
                                       ----------           ----------
      Total current assets            239,688,000          257,423,000
Fixed assets, net                     107,671,000           80,332,000
Other long-term assets                 15,109,000           13,050,000
                                       ----------           ----------
        Total assets                $ 362,468,000         $350,805,000
                                    =============         ============

Liabilities and stockholders' equity
   Short-term debt                    $ 7,282,000         $  7,834,000
   Accounts payable and accrued
    liabilities                        32,638,000           41,003,000
   Other current liabilities           12,470,000            5,626,000
                                       ----------            ---------
        Total current liabilities      52,390,000           54,463,000
Other long-term liabilities            19,827,000            9,775,000
Stockholders' equity                  290,251,000          286,567,000
                                      -----------          -----------
        Total liabilities &
         stockholders' equity       $ 362,468,000         $350,805,000
                                    =============         ============