ATMI grows profits and revenues in second quarter; Product sales double, profit increases more than 250%.

DANBURY, Conn.--(BUSINESS WIRE)--July 23, 1996--Advanced Technology Materials Inc. (Nasdaq: ATMI), today announced a 72% increase in revenues to $12,376,000 for its second quarter ended June 30, 1996, compared to revenues of $7,185,000 a year ago.

Earnings per share were $0.07, compared with $0.02, with net income of $640,000 for the current quarter compared with $166,000 for the second quarter of 1995. Of the $12.4 million revenue for the quarter, product sales almost doubled to $10,066,000 from $5,049,000 a year ago.

For the first half of 1996, ATMI's overall revenues were up 69% to $22,439,000, compared to revenues of $13,251,000 a year ago. Earnings per share were $0.12 for six months in 1996, compared with $0.00 in 1995, as net income improved to $1,110,000 compared with $8,000 a year ago.

Gene Banucci, president, said, "Our business strategy focuses on semiconductor industry growth niches -- namely new materials and safety and environmental products -- that can be influenced by our heavy investment in R&D. We believe our strategy was successful in the second quarter, and will be over the long term. However, it is clear that the semiconductor industry -- and especially the semiconductor equipment industry -- are rapidly decelerating from 1995's exceptional growth rates. Because of the niches we are in -- especially the consumable materials market which continues to grow -- we do not expect to see the full force of a downturn, but may be affected in certain segments."

Dan Sharkey, CFO, commented, "All of the three businesses in our portfolio made excellent progress during the second quarter. The EcoSys semiconductor environmental business did very well, especially in the Far East. The NovaMOS semiconductor materials business expanded rapidly as chipmakers -- especially DRAM manufacturers -- ordered next-generation materials and delivery systems in what we believe is an attempt to begin to differentiate product lines in their fiercely competitive market. Our Epitronics substrates and thin films business is both expanding its sales and service capability, while continuing to make progress in materials for blue lasers and light emitting diodes (LEDs) with Hewlett-Packard, Xerox, and SDL."

"During the quarter, we also made a concerted effort to strengthen our intellectual property portfolio to protect several of our emerging materials technologies. So far this year, ATMI applied for 31 patents, supplementing our existing portfolio of 60 issued and 12 licensed patents, plus our 30 other patents pending. This effort, which we expect to continue, has affected earnings, but we believe it is absolutely necessary to assure our long term growth."

Statements which are not historical information are forward looking, which involve risks and uncertainties, including, but not limited to: changes in semiconductor industry growth or ATMI's markets; competition, problems, or delays developing and commercializing new products, and other factors discussed in ATMI's filings with the Securities and Exchange Commission.

ATMI, with headquarters in Danbury, is a leading provider of advanced semiconductor materials and environmental equipment. It is also developing next-generation semiconductor devices based on its new materials technologies. -0- http://www.atmi.com -0-

                Advanced Technology Materials Inc.
                  Summary Financial Information

                                         Three Months Ended
                                              June 30,
                                         1996          1995

Revenues
 Product revenues                   $10,066,000     $5,049,000
 Contract revenues                    2,310,000      2,136,000
Total revenues                       12,376,000      7,185,000
Cost of revenues                      6,237,000      4,093,000
Gross profit                          6,139,000      3,102,000
Operating expenses
 R & D                                2,174,000        831,000
 S, G, & A                            3,372,000      2,067,000
                                      5,546,000      2,898,000
Operating income (loss)                 593,000        204,000
Other income                            131,000         37,000
Income before taxes                     724,000        241,000

Income taxes                             84,000         75,000
Net income                           $  640,000     $  166,000

Net income per share                       $.07         $ 0.02

Weighted average shares outstanding   9,413,000      7,696,000

                                          Six Months Ended
                                              June 30,
                                         1996          1995

Revenues
 Product revenues                   $17,646,000    $ 9,040,000
 Contract revenues                    4,793,000      4,211,000
Total revenues                       22,439,000     13,251,000
Cost of revenues                     11,520,000      7,629,000
Gross profit                         10,919,000      5,622,000
Operating expenses
 R & D                                4,037,000      1,748,000
 S, G, & A                            5,948,000      3,893,000
                                      9,985,000      5,641,000
Operating income (loss)                 934,000        (19,000)
Other income                            287,000        153,000
Income before taxes                   1,221,000        134,000

Income taxes                            111,000        126,000
Net income                           $1,110,000     $    8,000

Net income per share                       $.12         $ 0.00

Weighted average shares outstanding   9,364,000      7,647,000

                Advanced Technology Materials Inc.
                  Summary Financial Information

Balance Sheet Highlights                      June 30,     December 31,
                                                1996          1995

Assets
 Cash & marketable securities               $21,200,000    $25,500,000
 Other current assets                        14,100,000     12,300,000
 Other assets                                13,700,000     12,100,000
  Total assets                              $49,000,000    $49,900,000

Liabilities and stockholders' equity
 Current liabilities                        $ 9,300,000    $11,500,000
 Other liabilities                            5,700,000      5,500,000
 Stockholders' equity                        34,000,000     32,900,000
  Total liabilities & stockholders' equity  $49,000,000    $49,900,000

CONTACT: ATMI

Dean Hamilton, 203/794-1100

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