Aetrium Reports 38% Sequential Revenue Growth for First Quarter and Significant New Orders.

Business Editors

ST. PAUL, Minn.--(BUSINESS WIRE)--April 21, 2004

Aetrium Incorporated (Nasdaq:ATRM) today announced results for its first quarter ending March 31, 2004.

Revenue for the first quarter was $6,141,000, up from revenue of $4,451,000 for the prior quarter, and up from revenue of $3,070,000 for the first quarter of 2003. Net income for the first quarter was $713,000, or $.07 per share, compared to a net loss in the first quarter of 2003 of $630,000, or ($.07) per share.

"We remain very pleased with the way we are participating in the recovery that is now clearly gathering momentum within the semiconductor equipment industry," said Joseph C. Levesque, president and chief executive officer. "Our revenue for the first quarter increased 38% sequentially, after a 34% sequential increase in the previous quarter, both of which we believe exceeded industry growth rates for those quarters. Our cash flow from operations was over $700,000, our net income exceeded 11% of our revenue, and our backlog increased."

"The momentum of the first quarter has carried into the second quarter," Mr. Levesque continued. "Shortly after the close of the first quarter we received an order of approximately $4.0 million from one of our existing key customers for a variety of our new and older generation gravity feed test handlers, most of which is scheduled for delivery in the second quarter. Also early in the quarter we received an order from an existing key customer for the first unit of our newest gravity feed test handler, the Model 55V8, that is scheduled for delivery to a US facility late in this quarter. The Model 55V8 was first introduced at Semicon West last year and is designed specifically for newer generation IC packages and can be configured with up to 8 test sites with device dependent throughput rates in excess of 30,000 devices per hour. We believe these orders validate our product development strategy of focusing on the most compelling requirements of the largest and fastest growing integrated circuit (IC) package segments of the semiconductor industry."

Mr. Levesque added, "With respect to the current quarter, we expect that our revenue is apt to surpass the industry growth rate once again and grow by as much as 50% sequentially, and that we will most likely end the quarter with an even larger backlog."

Certain matters in this news release are forward-looking statements which are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include, but are not limited to, adverse domestic or global economic conditions, slowing growth in the demand for semiconductor devices, the volatility and cyclicality of the microelectronics industry, changes in the rates of capital expenditures by semiconductor manufacturers, progress of product development programs, unanticipated costs associated with the integration or restructuring of operations, and other risk factors set forth in the company's SEC filings, including its Form 10-K for the year ended Dec. 31, 2003.

Aetrium, based in North St. Paul, Minnesota, is a leading supplier of proprietary technologies and equipment that are used by the worldwide semiconductor industry to assemble and test ICs and other electronic components. The company's products are used by customers to advance reliability, improve quality, increase product yield or improve manufacturing processes. Aetrium has manufacturing facilities in North St. Paul, Minn. and Dallas, Texas. Aetrium's common stock is publicly traded on the Nasdaq market under the symbol ATRM. More information about Aetrium is available on the internet at www.Aetrium.com.

                         Aetrium Incorporated
                 Consolidated Statements of Operations
                 (in thousands, except per share data)


                                                   Three Months ended
                                                        March 31,
                                                  --------------------
                                                     2004       2003
                                                  --------------------


Net sales                                         $  6,141   $  3,070
  Cost of goods sold                                 2,704      1,499
                                                  --------------------
Gross profit                                         3,437      1,571
                                                  --------------------
Gross profit percent                                  56.0%      51.2%

Operating expenses:
  Selling, general and administrative                1,878      1,665
  Research and development                             846        553
                                                  --------------------
    Total operating expenses                         2,724      2,218
                                                  --------------------

Income (loss) from operations                          713       (647)
  Interest income (expense), net                        10         17
                                                  --------------------
Income (loss) before income taxes                      723       (630)
Income tax expense                                     (10)         -
                                                  --------------------
Net income (loss)                                 $    713   $   (630)
                                                  ====================


Income (loss) per common share:
  Basic                                           $   0.07   $  (0.07)
  Diluted                                         $   0.07   $  (0.07)

Weighted average common shares outstanding:
  Basic                                              9,508      9,477
  Diluted                                            9,964      9,477


                         Aetrium Incorporated
                      Consolidated Balance Sheets
                            (In Thousands)


                                              March 31,   December 31,
                                                2004         2003
                                            ------------  ------------

Assets:
 Cash and cash equivalents                  $   5,020    $    4,087
 Accounts receivable, net                       3,289         3,320
 Inventories - operations                       6,890         6,365
 Inventories -  shipped equipment subject
  to revenue deferral                             459           324
 Other current assets                             292           209
                                            ------------  ------------
   Total current assets                        15,950        14,305
                                            ------------  ------------

 Property and equipment, net                      435           386
                                            ------------  ------------

 Identifiable intangible assets, net            1,529         1,750
 Other assets                                      94            28
                                            ------------  ------------
   Total assets                             $  18,008     $  16,469
                                            ============  ============


Liabilities and shareholders' equity:
 Current liabilities:
  Current portion of long-term debt         $      34     $       -
  Trade accounts payable                        1,457         1,540
  Accrued liabilities                           1,865         1,258
                                            ------------  ------------
   Total current liabilities                    3,356         2,798
                                            ------------  ------------

 Long-term debt, less current portion             156             -
                                            ------------  ------------

 Shareholders' equity                          14,496        13,671
                                            ------------  ------------

   Total liabilities and shareholders'
    equity                                  $  18,008     $  16,469
                                            ============  ============