Amtech Systems Inc. Forecasts Loss for Third Quarter of Fiscal 1998.

TEMPE, Ariz.--(BUSINESS WIRE)--June 24, 1998--Amtech Systems Inc. (NASDAQ:ASYS) Wednesday announced that it anticipates revenues of approximately $3.5 million and a net loss of $.04 to $.06 per share for the third fiscal quarter ending June 30, 1998, as compared to break-even earnings for the same period in fiscal 1997 on revenues of $2.8 million.

In addition, the company expects to report net income for the first nine months of fiscal 1998 of approximately $.01 to $.03 per share on revenue of approximately $12.4 million, as compared to earnings of $.04 per share on revenues of $7.4 million for the same period in fiscal 1997. These expected results are based upon a review of preliminary financial information.

During fiscal 1997, the gain on the disposition of an interest in a joint venture accounted for approximately $.02 of the reported net income per share.

Anticipated revenues for the third quarter of fiscal 1998 are approximately $500,000 and $1.2 million lower than revenue in the first and second quarters, respectively. The decline is due in part to the fact that some customers are taking delivery of fewer consumable items, as a result of the slowdown effecting nearly all of the semiconductor industry.

In addition, the company has experienced delays in producing two large system orders amounting to approximately $700,000, because of customer change orders and the related burden on the company's engineering resources.

The company expects the fourth quarter of fiscal 1998 to be profitable, as a result of the expected shipment of these orders not completed in the third quarter. The anticipated third quarter loss is the direct result of lower than expected revenue, which reduced gross margin, and increased overhead expenses.

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.

CONTACT: Amtech Systems Inc., Tempe

Robert T. Hass, 602/967-5146

or

L.G. Zangani, LLC 

Tom Ennis, 908/788-9660