Amtech Systems Inc. Announces One for Two Reverse Stock Split.

TEMPE, Ariz.--(BUSINESS WIRE)--March 9, 1999--Amtech Systems Inc. (Nasdaq:ASYS) Tuesday announced that its shareholders, at the annual meeting held on Feb. 26, 1999, approved a one for two reverse stock split in order to improve the likelihood of regaining and maintaining a bid price of at least $1.00 for the company's common stock, thereby improving the company's ability to maintain its listing on the Nasdaq SmallCap Market.

The reverse stock split shall become effective at the close of business on the day the company files the amendment to its Articles of Incorporation with the Arizona Corporation Commission, which is scheduled for March 15, 1999.

Total shares voted at the meeting were 3,771,053, or 89% of the outstanding, with 3,584,459 shares, or 95% of those voted, voting in favor of the reverse split. That proposal was unanimously approved by the board of directors at its Dec. 11, 1998 meeting.

The number of shares outstanding before the one for two reverse split is 4,232,632. The number of shares that will be outstanding when the market opens on the day following the filing of the amendment to the Articles of Incorporation (i.e. March 16, 1999) will be approximately 2,116,316.

Thus, every two shares of issued and outstanding common stock will be converted and reclassified into one share of post-split common stock. The reverse split will not affect any shareholder's proportionate interest in the company or the rights, preferences, privileges or priorities of any shareholder, other than an adjustment that may occur due to the rounding up of fractional shares.

In order to minimize costs, shareholders will not be required to exchange their pre-split stock certificates for post-split stock certificates. The transfer agent will keep track of and use the CUSIP number for each certificate, in order to keep track of the number of shares represented thereby.

Shareholders that want new certificates and willing to pay the exchange fee, $20 for each new certificate issued, should call American Securities Transfer & Trust Inc., the company's transfer agent, at 303/234-5300 and ask for the Research Department.

A company spokesman said, "It is very important to our shareholders that the Company's Common Stock maintain its listing on the Nasdaq SmallCap Market, which requires regaining and maintaining a bid price of $1.00 per share. The reverse split is one action taken by management and its shareholders to meet that objective.

"This approach was successful in 1993 and hopefully will be again this time. A couple of statistics based upon the Company's December 31, 1998 balance sheet will help illustrate the reasons management is optimistic. As of that date the Company's cash and cash equivalents alone amounted to $1,742,462, or $.41 per share pre-split and $.82 per share post reverse split.

"Also, as of that date, cash and cash equivalents and accounts receivable net of the allowance for doubtful accounts exceeded all current liabilities by $2,241,122, or $.53 pre-split and $1.06 per share. Finally, stockholders' equity amounted to $6,395,027, or $1.51 per pre-split share and $3.02 per share after the reverse split."

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.

Information provided herein by the company may contain "forward-looking" information, as that term is defined by the Private Securities Litigation Reform Act of 1995 (the "PSLRA"). These cautionary statements are being made pursuant to the provisions of the PSLRA and with the intention of obtaining the benefits of the "safe harbor" provisions of the PSLRA.

The company cautions investors that any forward-looking statements made by the company are not guarantees of future performance and that actual results may differ materially from those in the forward-looking statements as a result of various factors, including but not limited to risks or uncertainties detailed in the company's filings with the Securities and Exchange Commission.

The company undertakes no obligation to publicly update or revise any forward-looking statements.