Applied Materials Admits to U.S. Court That It Anonymously Sought to Overturn Axcelis Technologies' Patent; Axcelis "Very Pleased" With Court's Rulings.

Business Editors/Legal Writers

BEVERLY, Mass.--(BUSINESS WIRE)--Jan. 26, 2001

In a hearing held on January 24th before the U.S. District Court in Boston, Applied Materials, Inc. (NASDAQ: AMAT) admitted to the Court what it has sought to conceal for almost two years -- that it was the anonymous requester that twice unsuccessfully challenged the validity of an Axcelis Technologies' (NASDAQ: ACLS) patent for the use of radio frequency linear accelerator ("rf LINAC") technology in high energy ion implantation.

Applied's extensive (if unsuccessful) efforts to invalidate Axcelis' patent over the last two years call into question Applied's recent denials that its new implanter infringes that patent. As has been previously disclosed, the United States Patent Office (PTO) ruled in favor of Axcelis both times and upheld the validity of its patent. Applied's decision to proceed with the launch of its infringing technology despite the Axcelis patent, as well as its own predictions that demand for high energy ion implantation equipment will peak in 2001, underscore the sizeable opportunity before Axcelis and the harm it faces should Applied be allowed to proceed.

Axcelis also took issue with a misleading public relations statement issued last night by Applied. In it, Applied suggested that the PTO is continuing to review the validity of the Axcelis patent. In fact, the PTO has already definitively ruled against Applied's arguments for the second time and affirmed that the Axcelis patent is valid. The matter presently before the PTO is one that was initiated by Axcelis to correct a clerical error in the PTO's most recent ruling.

As Axcelis stated in a court filing, "The remarkable basis for Applied's Cross-Motion is its apparently unbounded optimism that the PTO, in response to a petition filed by Axcelis to request a correction of clerical oversight, will reverse completely its prior course and invalidate Axcelis' patent. Having twice failed to convince the PTO to do precisely that, Applied certainly has no basis for its overly optimistic view..."

Brian R. Bachman, Vice Chairman and CEO of Axcelis stated, "We are very pleased with the Court's decision to move directly to an expedited discovery process followed by a full trial within six months after the completion of the administrative proceedings before the Patent Office. We are eager to move forward with this case and are more confident than ever in the strength of our position."

About Axcelis Technologies, Inc.

Axcelis Technologies, Inc., headquartered in Beverly, Massachusetts, provides innovative, high-productivity manufacturing solutions for the semiconductor industry. Axcelis is dedicated to the design and manufacture of high current, medium current and high energy ion implantation equipment; rapid thermal processing systems; and photostabilization and photoresist stripping equipment. Axcelis Technologies has manufacturing facilities in Beverly and Rockville, Maryland, as well as in Toyo, Japan through its joint venture Sumitomo Eaton Nova. For more information, please visit www.axcelis.com.