Aetrium Reports Profitable 2004 on Strong Revenue Growth.

ST. PAUL, Minn. -- Aetrium Incorporated (Nasdaq:ATRM) today announced results for the fourth quarter and fiscal year ended December 31, 2004.

Revenue for 2004 was $27,789,000, up 97% from revenue of $14,089,000 for 2003. Net income for 2004 was $3,403,000 or $.34 per diluted share, compared to a net loss for 2003 of $1,559,000 or $.16 per share.

Revenue for the fourth quarter of 2004 was $5,468,000, up 23% from revenue of $4,451,000 for the fourth quarter of 2003, but down sequentially from revenue of $7,073,000 for the third quarter of 2004. Net loss for the fourth quarter of 2004 was $134,000, or $.01 per share. The net loss included a loss of $202,000 realized on the sale of marketable securities. Net income for the fourth quarter of 2003 was $98,000, or $.01 per share.

"We are very pleased with the revenue growth we experienced in 2004, which was more than double the growth rate of our industry segment," said Joseph C. Levesque, president and chief executive officer. "Other highlights in 2004 included an increase in gross margins to 56.8% compared to 52.8% in 2003, and positive operating profit and operating cash flow in all four quarters of 2004. We believe our revenue growth reflects the success of our product development strategy to focus on the most compelling requirements of the largest and fastest growing segments of the semiconductor industry. We have continued this strategy with our newest product releases. Fourth quarter included our first revenue units of our new 55V8 quad site gravity feed test handler, sold to a large U.S. based integrated device manufacturer (IDM), and we have successfully advanced to the final stages of evaluation of an additional 55V8 handler at a second large U.S. based IDM. We are also very pleased with the progress we have made in the evaluation of our next generation 4800 burn-in board loader at a third large U.S. based IDM. We believe these new products are adding significant breadth and market reach to our product lines, and will help to enable us to continue to out perform our industry segment."

"However, after a strong first half of 2004, the semiconductor industry took aggressive actions in the second half of 2004 to address growing inventories," Mr. Levesque continued. "As a result, capital equipment orders dropped across our industry segment in the third quarter of 2004 and continued to drop in the fourth quarter, leaving our year-end backlog at about $2.8 million. While semiconductor revenues continued to grow in the second half of 2004, and while we believe the fundamentals for continued growth in semiconductor demand remain in place, semiconductor companies remain cautious in their outlook and conservative in their capital equipment purchases. Quick delivery continues to be a key requirement in this environment, and we have positioned ourselves to be able to respond to delivery pressures. Looking forward, we assume that further inventory correction measures will continue to drive these conditions and may even further dampen capital equipment demand during the first quarter of 2005."

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 integrated circuits (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      Year ended
                                   December 31,       December 31,
                               ------------------- -------------------
                                 2004      2003      2004      2003
                               ------------------- -------------------


Net sales                        $5,468    $4,451   $27,789   $14,089
  Cost of goods sold              2,513     1,984    12,000     6,649
                               ------------------- -------------------
Gross profit                      2,955     2,467    15,789     7,440
Gross profit percent               54.0%     55.4%     56.8%     52.8%

Operating expenses:
  Selling, general and
   administrative                 1,980     1,665     8,728     6,399
  Research and development          931       712     3,593     2,641
                               ------------------- -------------------
    Total operating expenses      2,911     2,377    12,321     9,040

Operating income (loss)              44        90     3,468    (1,600)
                               ------------------- -------------------

  Interest income (expense),
   net                               22         8        62        41
  Loss on sale of marketable
   securities                      (202)        -      (202)        -
  Gain on claim settlement            -         -       127         -
                               ------------------- -------------------
Income (loss) before income
 taxes                             (136)       98     3,455    (1,559)
  Income tax benefit (expense)        2         -       (52)        -
                               ------------------- -------------------
Net income (loss)                 $(134)      $98    $3,403   $(1,559)
                               =================== ===================


Income (loss) per common
 share:
  Basic                          $(0.01)    $0.01     $0.35    $(0.16)
  Diluted                        $(0.01)    $0.01     $0.34    $(0.16)

Weighted average common shares
 outstanding:
  Basic                           9,627     9,478     9,589     9,477
  Diluted                         9,627     9,720    10,113     9,477


                         Aetrium Incorporated
                     Consolidated Balance Sheets
                            (In Thousands)


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

Assets:
  Cash and cash equivalents                       $7,268       $4,087
  Accounts receivable, net                         3,538        3,320
  Inventories - operations                         8,201        6,365
  Inventories -  shipped equipment subject
   to revenue deferral                               293          324
  Other current assets                               175          209
                                             ------------ ------------
     Total current assets                         19,475       14,305
                                             ------------ ------------

  Property and equipment, net                        403          386
                                             ------------ ------------

  Identifiable intangible assets, net                879        1,750
  Other assets                                        78           28

                                             ------------ ------------
     Total assets                                $20,835      $16,469
                                             ============ ============


Liabilities and shareholders' equity:
  Current liabilities:
    Current portion of long-term debt                $33           $-
    Trade accounts payable                         1,571        1,580
    Accrued liabilities                            1,658        1,218
                                             ------------ ------------
     Total current liabilities                     3,262        2,798
                                             ------------ ------------

  Long-term debt, less current portion               133            -
                                             ------------ ------------

  Shareholders' equity                            17,440       13,671
                                             ------------ ------------

     Total liabilities and shareholders'
      equity                                     $20,835      $16,469
                                             ============ ============