Amtech Systems Inc. Reported Significant Increase in Second Quarter 1999 Net Income.

TEMPE, Ariz.--(BUSINESS WIRE)--May 18 1999--

Amtech Systems Inc. (NASDAQ:ASYS) reported that net income for the second quarter of fiscal 1999, which ended March 31, 1999, was $168,000, or $.08 per share, on revenue of $3,593,000.

Such earnings were $221,000, or $.10 per share, higher than the $53,000 net loss incurred in the first quarter of the current fiscal year when revenues were $3,379,000. The improvement in earnings is due to a 6% increase in revenue and an improved product mix.

Net income for the second quarter of fiscal 1999 represents a decrease of $24,000, or $.01 per share, compared to $192,000, or $.09 per share, earned in the second quarter of fiscal 1998.

The unfavorable earnings comparison to the second quarter of fiscal 1998 is due to a 24% decline in revenue from $4,739,000, as the company's operations were not materially affected by the industry slowdown until the third quarter of fiscal year 1998. The decline in earnings was relatively modest due to the significant expense reductions that were achieved.

Net income for the first six months of the current fiscal year declined to $115,000, or $.05 per share, compared to $301,000, or $.14 per share, during the comparable period in fiscal 1998. Revenues for the first half of fiscal 1999 were $6,972,000, a decrease of $1,827,000, or 21%, from $8,799,000 during the first half of fiscal 1998.

J.S. Whang, the company's president and chief executive officer, stated "Improvements in the outlook for the semiconductor industry, as reflected in increased revenues during the second quarter and recent order activity, make me believe that the worst effects of the industry slowdown are behind us.

"While we may still see some volatility in revenue and earnings over the next few quarters, the success of our cost reduction programs and the company's financial strength are allowing us to resume our investigation of synergistic acquisitions and new semiconductor fabrication technologies."

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, and in certain processes of fabricating semiconductor devices.

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. -0-

                  Condensed Statements of Operations

                    The Three Months Ended      The Six Months Ended
                            March 31,                 March 31,
                       1999           1998        1999        1998
                    (Unaudited)   (Unaudited)  (Unaudited) (Unaudited)

Revenues            $3,593,204    $4,738,521    $6,971,912 $8,799,347
Net Income            $167,526      $191,945      $114,504   $301,285
Income Per Share:
 Basic (a)                $.08          $.09          $.05       $.14
 Diluted (a)              $.08          $.09          $.05       $.13

     (a) All per share amounts have been restated to reflect the one
for two reverse split that became effective on March 16, 1999.


                       Condensed Balance Sheets

                                  March 31,       September 30,
                                    1999              1998
                                (Unaudited)

Cash and Equivalents             $1,158,462        $1,351,542
Accounts Receivable               3,417,928         2,894,217
Inventories and Prepaids          2,581,770         2,885,419
Deferred Income Taxes               372,000           393,000
 Total Current Assets             7,530,160         7,524,178

Plant and Equipment - Net         1,213,149         1,243,016

Goodwill and Other Assets           541,228           558,285
                                 ------------       -----------
                                 $9,284,537        $9,325,479

Current Liabilities              $2,484,234        $2,530,723
Long-Term Debt                      324,665           347,667
Total Stockholders' Equity        6,475,638         6,447,089
                                 ------------       ------------
                                 $9,284,537        $9,325,479