Amtech Systems Inc. Announces $1.6 Million in Orders From Newly Expanded Market and New Customer Base.

Business Editors & High-Tech Writers

TEMPE, Ariz.--(BUSINESS WIRE)--May 24, 2002

Amtech Systems Inc. (Nasdaq:ASYS) ("Amtech" or the "company") announced $1.6 million in new orders (2) from Asian customers indicating some improvement in the Asian market for the company's products.

Each of the two orders announced includes a horizontal diffusion furnace and Amtech's proprietary automation products. One of the orders includes a SMIF pod opener and a wafer transfer machine, which will be integrated with Amtech's S-3 00 automation product. Both of these customers have expansion plans that could benefit Amtech.

As part of Amtech's strategy to expand the capabilities of its IBAL Automation products, the company has agreed to supply a SMIF (standard mechanical interface) pod opener manufactured by a third party and integrate it with the company's automation. One benefit of Amtech's automation products is that it reduces the particles created by the operators, by minimizing their contact with the wafers.

SMIF pods are environmentally secure wafer containers, advertised as being capable of maintaining a better than Class 1 wafer environment, further reducing problems caused by particles. This new automation model is expected to expand the market for the company's automation products.

Most semiconductor fabricators using 200mm wafers have a policy to use all vertical furnaces, because they believe that is appropriate based upon the geometry of the devices they produce.

Amtech Systems Inc. is in the process of educating these customers on the current technological capabilities of its line of 200mm horizontal diffusion furnaces, especially when integrated with its IBAL Automation products. Also, not all process steps are affected by the geometry of the end device being fabricated.

One of the orders announced today represents a new customer for the company, who currently has all 200mm vertical furnaces. This customer has agreed to try a mix-and-match approach to diffusion furnace selection, using Amtech's 200mm horizontal diffusion furnaces and automation where the process is not affected by the device geometry and using vertical's for the remaining process steps.

This will be the company's tenth customer using the company's 200mm diffusion furnaces in a more cost effective approach to semiconductor fabrication.

J.S. Whang, the company's president and CEO, stated, "I believe that we have a very compelling story to tell regarding the viability and economies of using horizontal diffusion furnaces at certain semiconductor fabricators that have previously used only vertical furnaces for all of their diffusion process steps.

"Because the cost of ownership of a horizontal furnace is so much less than that of a vertical, it makes a lot of sense to use a horizontal for certain process steps. By integrating SMIF pod openers with our automation products, our horizontal diffusion furnace and automation products will be even more competitive in the portion of the market currently served exclusively by vertical furnaces.

"We recognize that these strategies involve taking a share from our competitors, suppliers of vertical furnaces, and they are not expected to take it lying down. Therefore, these strategies are dependent upon our ability to continue meeting or exceeding our customers expectations, which has always been our goal.

"We are so confident in our ability to meet the expectations of our customers, that in these two cases, we have agreed to treat approximately 50% of the equipment as evaluation units subject to the customers' acceptance or return during the first six months."

Amtech Systems Inc. manufactures capital equipment, including silicon wafer handling automation, semiconductor processing equipment and related consumables used in fabricating semiconductor devices.

Semiconductors, or semiconductor chips, are fabricated on silicon wafer substrates, sliced from ingots, and are part of the circuitry, or electronic components, of many products including computers, telecommunications devices, automotive products, consumer goods, industrial automation and control systems, and solar cells.

The company's semiconductor handling and processing products currently address the polishing of newly sliced silicon wafers and reclaimed test wafers and the oxidation and deposition steps used in the fabrication of semiconductors, optical components and solar cells.

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 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, industry specific and general business conditions, competitive market conditions, success of Amtech's growth and sales strategies, the possibility of customer changes in delivery schedules, cancellation of orders, potential delays in product shipments, delays in obtaining inventory parts from suppliers, failure to satisfy customer acceptance requirements, difficulties in collecting receivables and the effects of Staff Accounting Bulletin No. 101, "Revenue Recognition in Financial Statements," issued by the Securities and Exchange Commission.