Amtech Systems Inc. Announces Continued Profitability for Its Second Quarter Results.

Business Editors/High-Tech Writers

TEMPE, Ariz.--(BUSINESS WIRE)--May 15, 2002

Amtech Systems Inc. (Nasdaq:ASYS), a global supplier of production and automation hardware and supplies for semiconductor manufacturing and related industries, announced that the company continued to be profitable in its second fiscal quarter ended March 31, 2002, despite the severe and prolonged industry downturn.

Revenues for the second quarter of fiscal 2002 totaled $5.4 million, essentially unchanged from the $5.5 million in revenue from the first quarter of fiscal 2002, but declined 20 percent compared to the second quarter of the prior fiscal year.

The fiscal 2002 second quarter net income was $.1 million, or $.04 per diluted share, compared with net income of $.7 million, or $.25 per diluted share, for the same quarter in fiscal 2001.

As of March 31, 2002, the order backlog had declined to $3.9 million, a decrease of $3.4 million, or 47 percent, from the $7.3 million backlog as of Dec. 31, 2001. However, as of April 30, 2002, the backlog had increased by 43 percent to $5.5 million. In addition to the backlog, the company has deferred $1.8 million of revenue to future periods in accordance with SAB 101.

"Despite the sustained severe downturn in the semiconductor industry, we are pleased to have maintained second quarter revenues of more than $5 million, comparable to the first fiscal quarter revenues, while continuing to be profitable," stated J.S. Whang, president and chief executive officer of Amtech Systems Inc.

"We are hopeful that the recent order flow is an indicator that the industry has reached the bottom of the cycle and is in the very earliest stage of a recovery.

"Meanwhile, we are continuing to follow our strategy of expanding into existing markets and adding new markets within our core competencies. Due to our continued efforts at building our infrastructure and our strong financial position, we are ready to take advantage of the opportunities that will present themselves in the inevitable upturn in the semiconductor industry."

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 automation and certain thermal processes used in fabricating semiconductor devices, optical components of high-speed telecom switches 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 and failure to satisfy customer acceptance requirements under Securities and Exchange Commission Staff Accounting Bulletin No. 101, "Revenue Recognition in Financial Statements."

This earnings release should be read in conjunction with the company's Annual Report on Form 10-K for the fiscal year ended Sept. 30, 2001 and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2002.

CONDENSED STATEMENTS OF OPERATIONS

                           (amounts in thousands, except share data)
                            THE QUARTER ENDED      SIX MONTHS ENDED
                                MARCH 31,               MARCH 31,
                             2002       2001        2002        2001
                            ------     ------      ------      ------
Revenue                  $   5,416  $   6,803   $  10,873   $  10,405

Operating Profit         $     144  $   1,032   $     357   $     885

Cumulative effect of
 change in accounting
 principle, net of tax   $       -  $       -   $       -   $    (690)

Net Income               $     103  $     685   $     270   $     (32)

Earnings Per Share:
-------------------
  Basic                  $     .04  $     .26   $     .10   $    (.01)
  Diluted                $     .04  $     .25   $     .10   $    (.01)

Weighted Average Share
 Outstanding:
  Basic                  2,681,533  2,657,886   2,681,214   2,631,302
  Diluted                2,779,489  2,792,835   2,789,185   2,767,070

CONDENSED BALANCE SHEETS

                                       (in thousands)
                                   MARCH 31,      SEPT. 30,
                                     2002           2001
                                  ---------       ---------
CASH AND EQUIVALENTS              $  6,468        $  5,998
ACCOUNTS RECEIVABLE - NET            3,302           3,830
INVENTORIES AND PREPAIDS             4,465           4,890
DEFERRED INCOME TAXES                1,525           1,525
  TOTAL CURRENT ASSETS              15,760          16,243

PLANT AND EQUIPMENT - NET            1,487           1,484
GOODWILL AND OTHER ASSETS - NET        799             843
                                  --------        --------
                                  $ 18,046        $ 18,570