Amtech Systems, Inc. Reports Significant Increase in Fiscal 2000 First Quarter Earnings.

Business Editors

TEMPE, Ariz.--(BUSINESS WIRE)--Feb. 10, 2000

Amtech Systems, Inc. (Nasdaq:ASYS) reported net income of $131,000, or $.06 per share, on revenue of $3,863,000 for the first quarter of fiscal 2000, which ended December 31, 1999.

Those revenues and earnings are a significant improvement over the net loss of $53,000, or ($.03) per share, that resulted from $3,379,000 of revenue reported in the first quarter of the prior fiscal year. The 14% increase in revenue is due to the industry upturn and a trend within the industry of increasing automation of those semiconductor fabrication facilities using horizontal furnaces. The improvement in net earnings is the result of increased sales volume and a more favorable product mix.

As a result of the upturn in the semiconductor industry, revenue of the polishing supplies and equipment segment increased by $728,000 or 75% compared to the first quarter of the prior fiscal year. Sales of semiconductor production equipment declined by $245,000, or 10%, as the $499,000 or 114% increase in sales of IBAL Automation and Atmoscan(R) processing equipment were more than offset by a decline in the sales of diffusion furnaces. The significant growth in sales of IBAL Automation products is due to the upturn in the semiconductor industry and a trend for those semiconductor fabricators utilizing horizontal furnaces to automate them in order to increase their efficiency, safety and ergonomics.

Revenue for the first quarter of fiscal 2000 was $528,000 or 12% lower than in the fourth quarter of fiscal 1999. This was caused by a number of factors, including the fact that one system order was delayed pending revised shipping instructions from the customer and the increased number of holidays during the period. Net income for the quarter was also less than in the fourth quarter due to the decline in sales volume and certain expense increases.

While the sales order backlog is not always an accurate indicator of future revenue, the backlog increased 10% to $4,150,000 as of December 31, 1999 from $3,759,000 as of September 30, 1999. Although the backlog as of December 31,1999 was approximately 20% lower than at the same time last fiscal year, several large system orders have been booked since then and the product mix within the current backlog has a higher gross profit margin than the mix as of one year earlier.

J.S. Whang, the Company's President and CEO, stated &uot;I am pleased with our rapid recovery from the 1998-99 industry slowdown. That we were able to return to profitability so rapidly says a lot about our ability to focus our sales and marketing efforts. The results of these efforts have been rewarded with the recent and continuing acceptance of our IBAL Automation Products. The Company has also resumed its acquisition efforts, which have greatly contributed to our past growth.&uot;

Amtech Systems, Inc. manufactures capital equipment and related consumables used in the manufacture of various thin-wafer materials, primarily silicon wafers for the semiconductor industry, and in certain thermal processes used in fabricating semiconductor devices.

The Private Securities Litigation Reform Act of 1995 provides a &uot;safe harbor&uot; 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 Systems, Inc.) 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, audit adjustments to the preliminary revenues and earnings reported above, industry specific and general business conditions, competitive market conditions and the success of Amtech's growth and sales strategies. For more information, review the Company's filings with the Securities and Exchange Commission, including, but not limited to, Amtech Systems, Inc.'s annual report on Form 10-K and quarterly reports on Form 10-Q.

           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                              THE THREE MONTHS ENDED
                                   DECEMBER 31,
                               1999            1998
                            (UNAUDITED)     (UNAUDITED)

REVENUES                   $3,863,000      $3,379,000

NET INCOME (LOSS)            $131,000        $(53,022)

INCOME (LOSS) PER SHARE:
 BASIC(a)                        $.06           $(.03)
 DILUTED(a)                      $.06           $(.03)

WEIGHTED AVERAGE
   SHARES OUTSTANDING:
 BASIC(a)                   2,109,000       2,110,000
 DILUTED(a)                 2,222,000       2,110,000

(a) All shares and per share amounts have been restated to reflect the one for two reverse split that became effective at the close of business on March 15, 1999.