Amtech Systems Inc. Reports Significant Increase in Third Quarter 1999 Net Income.

TEMPE, Ariz.--(BUSINESS WIRE)--Aug. 17, 1999--

Amtech Systems Inc. (Nasdaq:ASYS) reported that net income for the third quarter of fiscal 1999, which ended June 30, 1999, was $28,000, or $.01 per share, on revenue of $3,404,000.

Third quarter earnings increased by $213,000, or $.10 per share, from the $185,000 net loss incurred in the same quarter of the fiscal 1998 when revenues were $3,687,000. The improved earnings, despite an 8 percent decline in revenues, is due to cost reduction programs implemented by the company in the last quarter of fiscal 1998 and the first quarter of fiscal 1999.

Net income for the nine months ended June 30, 1999, increased to $143,000, or $.07 per share, from $117,000, or $.05 per share, for the comparable period in fiscal 1998. The 22 percent increase in the nine months net earnings was achieved despite a 17 percent decline in net revenues to $10,376,000 from $12,486,000 in the first nine months of fiscal year 1998.

During the most recently completed quarter, the industry slowdown adversely affected the revenue of all operations when compared to the prior year, with the only exception being revenue from the sales of P.R. Hoffman products, primarily consumable items.

While the sale of P.R. Hoffman products did not increase significantly in the third quarter compared to the same quarter of last fiscal year, they were up 12 percent from the second quarter of this year and increased 57 percent from the first quarter of fiscal 1999.

J.S. Whang, the company's president and chief executive officer, stated, "I believe that the increased sales of P.R. Hoffman products may be a leading indicator for the other operations of the company because the sales and production cycles for consumable products are generally much shorter than those for capital equipment.

"While we may still see some volatility in revenue and earnings over the next few quarters, we are poised for the growth expected by the industry."

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-

Amtech Systems Inc.
Condensed Statements of Operations

                   The Three Months Ended      The Nine Months Ended
                           June 30,                   June 30,
                      1999         1998          1999         1998
                  (Unaudited)  (Unaudited)   (Unaudited)  (Unaudited)
Revenues          $ 3,403,801  $ 3,687,135   $10,375,713  $12,486,482

Net income (loss) $    27,998  $  (184,565)  $   142,502  $   116,720

Income (loss) per
 share:
   Basic (a)      $       .01  $      (.09)  $       .07  $       .05
   Diluted (a)    $       .01  $      (.09)  $       .07  $       .05


(a)  All per share amounts have been restated to reflect the one for
     two reverse split that became effective at the close of business
     on March 15, 1999.

Condensed Balance Sheets

                                 March 31,     Sept. 30,
                                   1999          1998
                                (Unaudited)
Cash and equivalents            $  890,729   $1,351,542
Accounts receivable - net        2,588,514    2,894,217
Inventories and prepaids         2,822,723    2,481,419
Refundable income taxes            358,000      404,000
Deferred income taxes              234,000      393,000

  Total current assets           6,893,966    7,524,178

Plant and equipment - net        1,136,559    1,243,016

Goodwill and other assets          522,070      558,285
                                ----------   ----------
                                $8,552,595   $9,325,479

Current liabilities             $1,787,823   $2,530,723
Long-term debt                     314,523      347,667
Total stockholders' equity       6,450,249    6,447,089
                                ----------   ----------
                                $8,552,595   $9,325,479