Amtech Systems, Inc. Announces Large IBAL Robot System Order.

TEMPE, Az.--(BUSINESS WIRE)--Feb. 23, 1999--AMTECH SYSTEMS, INC. (NASDAQ:ASYS) announced winning the competition for a large automation order from a world-class Texas semiconductor manufacturer. The order is for automating three new horizontal furnaces, with a total of eleven process chambers capable of processing a total of up to 2,200 silicon wafers at one time. The company won the more than $600,000 automation order over the competition, which included much larger, leading manufacturers of horizontal furnaces. The Company will install the latest version of its IBAL automation system at the customer's Texas facilities.

The Company's IBAL Automation solutions won the competition, because it literally has a zero footprint. This means the customer will not have to use any additional costly cleanroom floor space, which would have been required by the competition's automation. The customer is in the process of upgrading old horizontal diffusion furnaces in order to make the facility capable of processing 200 mm size wafers and to improve manufacturing efficiencies. As the result, this project has the potential for multi-million dollar orders for automating the remaining process chambers in that fab, depending upon the customer's satisfaction with the current, initial order and the customer's ultimate requirements.

The Company also has been actively working with another world-class semiconductor manufacturer that is upgrading one of its large East Coast manufacturing facilities. The plan calls for replacing old horizontal diffusion furnaces in order to increase the facilities' capability to 150 mm wafer size and to improve manufacturing efficiencies. In addition to replacing an entire facility with new horizontal furnaces, the customer plans to acquire automation for the new furnaces. The Company sold two (2) of its Tempress diffusion furnaces and IBAL Automation for one of those systems to the same customer. As a result, the Company believes it is competitively positioned for a significant portion of this customer's future equipment business.

The Company's IBAL Automation products are manufactured at its headquarters in Tempe, Arizona. Its Tempress horizontal diffusion furnaces are manufactured at its Heerde facility in The Netherlands.

J.S. Whang, the Company's President and CEO, stated "I am proud that we were selected to provide automation solutions to another world-class semiconductor manufacturer, especially considering the caliber of the competition for this business. We believe this proves that we have the right product at the right time. Many semiconductor manufacturers have whole facilities full of horizontal furnaces that are between ten (10) and fifteen (15) years old, which can process only four inch (4") to six (6") wafers. I believe that many of these semiconductor fabricators will decide to replace those systems with new eight-inch (8") horizontal systems, many of which will be automated. Amtech intends to capitalize on this opportunity, specifically the potential for a number of multi-million dollar furnace and automation orders that are likely to result from these upgrade programs."

Amtech Systems, Inc. manufactures capital equipment and related consumables used in fabricating semiconductor devices and in the polishing and lapping steps of manufacturing and reclaiming silicon wafers used in the fabrication of such devices, as well as of other wafer-thin materials.

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by Amtech) contains statements that are forward-looking. Such forward looking information involves a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those discussed or anticipated by management. Potential risks and uncertainties include, among other factors, industry specific and general business conditions, competitive market conditions and the success of Amtech's growth and sales strategies. For more information, review Amtech's filings with the Securities and Exchange Commission, including, but not limited to, Amtech's annual report on Form 10-K and quarterly reports on Form 10-Q.