Amtech Systems, Inc. Reports 324% Increase in Second Quarter 1998 Net Income.

TEMPE, Ariz.--(BUSINESS WIRE)--May 13, 1998--AMTECH SYSTEMS, INC. (NASDAQ:ASYS) reported that net income increased 324% to $192,000, or $.05 per share, in the second quarter of fiscal 1998, which ended March 31, 1998, from $45,000, or $.01 per share, in the comparable period of fiscal 1997. Net income for the first six months of the current fiscal year increased 82% to $301,000, or $.07 per share, from $166,000, or $.04 per share, for fiscal 1997. Reported revenues for the quarter were $4,739,000, an increase of $2,156,000, or 83%, from $2,583,000 for the second quarter of fiscal 1997. Revenues for the second quarter of fiscal 1998 also represent a 17% increase over the first quarter's revenues of $4,061,000. The Company's revenues for the six months ended March 31, 1998 were $8,799,000, an increase of 92% over that for the first six months of 1997.

Sales of Semiconductor Fabrication Products, existing prior to the acquisition of P.R. Hoffman, increased by 8% over the first six months of 1997 and accounted for 57% of revenues for the current fiscal year. Manufacturing support services, a semiconductor related service business, which commenced operations in the fourth quarter of fiscal 1997, accounted for 11% of the year-to-date increase in revenues. The revenues from the acquired P.R. Hoffman operations accounted for 80% of the increase in revenues for the current fiscal year. J.S. Whang, the Company's President and CEO, stated, "The Company's professional management's persistent attention to expanding our existing business through the introduction of new products and services, combined with our successful completion of the strategic acquisition of P.R. Hoffman produced a 92% increase in year-to-date revenues and an 82% increase in net income for the first six months. We intend to build future growth and value with exactly the same approach, attention to our existing businesses, introduction of new products and services and making strategic acquisitions."

As of March 31, 1998, the total backlog was $6,908,000, up 35% from $5,133,000 a year earlier and up 30% from $5,300,000 at December 31, 1997. As of March 31, 1998, cash and cash equivalents amounted to $1,980,000, or 20% of total assets. Stockholders' equity was 73% of total assets and equal to a book value of $1.70 per share as of that date.

Amtech Systems, Inc. manufactures capital equipment and related consumables used in the manufacture of various wafer thin materials, primarily silicon wafers for the semiconductor industry ("Wafer Fabrication Products"), and in certain processes of fabricating semiconductor devices ("Semiconductor Fabrication Products").

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.

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                            Amtech Systems, Inc.
               Condensed Statements of Operations (Unaudited)

                         Three Months Ended         Six Months Ended
                              March 31,                 March 31,
                          1998         1997         1998         1997

Revenues               $4,738,521   $2,582,807   $8,799,347   $4,590,327
Net Income             $  191,945   $   45,293   $  301,285   $  165,751
Income Per Share:
  Basic                $      .05   $      .01   $      .07   $      .04
  Diluted              $      .05   $      .01   $      .07   $      .03


                          Condensed Balance Sheets

                                      March 31,         September 30,
                                        1998                1997
                                     (Unaudited)

Cash and Equivalents                 $1,979,754          $1,395,849
Short Term Investments                       --             579,191
Accounts Receivable                   3,211,789           2,983,573
Inventories and Prepaids              2,335,954           2,147,872
Deferred Income Taxes                   318,000             273,000
  Total Current Assets                7,845,497           7,379,485

Plant and Equipment - Net             1,383,389           1,360,033

Goodwill and Other Assets               645,840             615,574

                                     $9,874,726          $9,355,092

Current Liabilities                  $2,405,677          $2,108,165
Long-Term Obligations                   303,320             318,721
Stockholders' Equity                  7,165,729           6,928,206
                                     $9,874,726          $9,355,092

CONTACT: Amtech Systems, Inc.

Robert T. Hass, CFO, 602/967-5146