Amtech Systems Inc. reported a 379 percent increase in net income for the nine months ended June 30, 1996.

TEMPE, Ariz.--(BUSINESS WIRE)--Aug. 21, 1996--Amtech Systems Inc. (NASDAQ:ASYS) reported that revenues for the nine months ended June 30, 1996 were $6,311,000, a 31 percent increase from the $4,817,000 reported for the comparable period of fiscal 1995.

Income from continuing operations was 116 percent higher for the nine months ended June 30, 1996 than in the similar period of last fiscal year, or $147,000 and $.04 per share in the current fiscal year period, versus $68,000 and $.02 per share in the prior year period.

The increase in revenue and income from continuing operations is due to the expansion of the company's horizontal diffusion furnace business. For the first three quarters of fiscal 1996, net income was $453,000, or $.09 per share, 379 percent higher than the $95,000, or $.03 per share, reported in the same period of the preceding year.

Revenues for the third quarter of fiscal 1996 increased 134 percent to $3,232,000, from $1,380,000 for the quarter ended June 30, 1995. As a result the company's earnings from continuing operations increased 341 percent, to $278,000, or $.05 per share, for the third quarter of fiscal 1996, from $63,000, or $.01 per share, for the three months ended June 30, 1995.

This growth in revenue and profits resulted from continued expansion of the horizontal diffusion furnace business and the shipment of many of the orders previously delayed due to the long delivery lead-times from suppliers of certain quartz parts. Net income for the three months ended June 30, 1996 was $302,000, or $.05 per share, compared to $67,000, or $.02 per share, earned during the third quarter of fiscal 1995.

The order backlog for semiconductor equipment and related parts was approximately $4,600,000, as of June 30, 1996, as compared to $1,300,000 as of June 30, 1995. The increase in the order backlog is due to expansion of the horizontal diffusion furnace business and the balance of a multi-year order of approximately $2,120,000 which is expected to be shipped ratably over fiscal 1997 and fiscal 1998.

The backlog was approximately $2,550,000 lower as of June 30, 1996 than at its March 31, 1996 peak. That decline is largely due the shipment of many of the previously delayed orders discussed above.

The company is also experiencing a slowdown in bookings due to increased caution in capital spending by the world's semiconductor producers, caused by rapidly declining prices for semiconductor chips and an oversupply of capacity for certain of those semiconductor products.

Industry forecasts of the revenue for front-end semiconductor production equipment suppliers, which includes Amtech, range from a decline of 16 percent to growth of 8 percent for calendar year 1997, as compared to that projected for calendar 1996.

Amtech Systems Inc. manufactures capital equipment for use in the production of semiconductors. -0-

                           Amtech Systems Inc.
                          Financial Highlights
                              (Unaudited)

                            Three Months Ended      Nine Months Ended
                                  June 30,               June 30,
                              1996       1995        1996       1995

Revenues                   $3,232,173 $1,379,603  $6,311,328 $4,816,947

Income from:
Continuing operations         277,994     63,059     147,016     68,108
Discontinued operations             -      4,419      21,757     26,461
Gain on disposal of
 technical contract
 personnel segment             23,834          -     284,335          -
                           ---------- ----------  ---------- ----------
Net income                   $301,828    $67,478    $453,108    $94,569

Income per share:
Continuing operations            $.05       $.01        $.04       $.02
Net income                       $.05       $.02        $.09       $.03

Average shares outstanding  6,315,734  4,305,702   6,381,556  3,633,394

Note:  The share and per share amounts have been restated to reflect
the two-for-one stock split which became effective March 29, 1996.
Earnings per share and average outstanding shares have been
calculated using the modified treasury stock method, as required by
GAAP.  The outstanding redeemable warrants were dilutive in the
fiscal 1996 periods.

                                         June 30,   Sept. 30,
                                           1996       1995
                                         Unaudited

Cash and equivalents                      $704,588   $833,820
Short-term investments                   2,626,534  3,671,569
Accounts receivable                      2,926,442  2,286,743
Inventories and prepaid expenses           716,891    569,463
Deferred income taxes                      213,000    165,000
                                        ---------- ----------
  Total current assets                   7,187,455  7,526,595
Plant and equipment - net                  962,991    649,798
All other assets                           463,186    189,126
                                        ---------- ----------
                                        $8,613,632 $8,365,519

Current liabilities                     $1,833,753 $1,363,291
Long-term debt                             211,064      --
Total stockholders' investment           6,568,815  7,002,228
                                        ---------- ----------
                                        $8,613,632 $8,365,519

CONTACT: Amtech Systems Inc., Tempe

Robert T. Hass, 602/967-5146