Axcelis Board Approves Share Repurchase Program; Provides Further Information on 2001 Performance.

Business/Technology Editors

BEVERLY, Mass.--(BUSINESS WIRE)--Nov. 17, 2000

Axcelis Technologies, Inc. (NASDAQ: ACLS) today announced that its Board of Directors has formally authorized a $75 million stock repurchase program for up to 6% of ACLS stock to be implemented over the next three years starting in the first quarter of 2001.

Brian Bachman, vice chairman and chief executive officer said, "Adoption of this program is consistent with our long term commitment to create shareholder value. The Company's performance through the first three quarters of fiscal 2000 resulted in higher than anticipated levels of cash, which, when combined with future cash flow from operations, can be used effectively to offset the dilution that shareholders would otherwise experience from stock option and employee stock purchase plan issuances. We view our stock as an especially attractive investment, and, therefore, have put in place a vehicle that allows us to repurchase shares in the open market if we believe this will benefit our shareholders. At the same time, we will not compromise our ability to make the investments necessary to fund our growth."

Shares repurchased through open market and other transactions will be held for reissuance under the Company's stock plan and for general corporate purposes.

At the close of business on November 16, 2000, there were approximately 97.1 million shares issued and outstanding, and the closing price on the NASDAQ was $8.00 per share. Eaton Corporation owns approximately 82% of those shares, and will distribute them as a dividend on December 29, 2000 to Eaton shareholders of record as of December 6, 2000.

The company also announced that it reaffirmed its fourth quarter revenue and earnings per share guidance of approximately $190 million and $.31 per share, respectively. For the first several quarters of 2001, the company expects revenues to be flat to the fourth quarter of 2000, which would indicate a 10-15% growth rate for 2001. The company indicated that its net income growth during this full year period, inclusive of one-time transition expenses, should be consistent with projected revenue growth.

"There is industry-wide consensus for a slower rate of growth in forecasted 2001 semiconductor capital spending than projected earlier this year. As a result, we believe it is prudent to adjust our 2001 revenue guidance. Our net income guidance has also been adjusted to be consistent with our outlook on revenue," Bachman said.

Mid Fourth Quarter Conference Call

Please join us for a conference call on November 17th at 9 a.m. EST to discuss the topics above. The call will be available to interested listeners via an audio webcast that can be accessed through Axcelis' home page http://www.axcelis.com, or by dialing 1-888-588-7932 (Dial 1-706-634-7442 outside of North America). Participants calling into the conference will be requested to provide company name: Axcelis Technologies and passcode: Mid Fourth. A telephone replay will also be available from 10:30 a.m. EST November 17, 2000 until 5:00 p.m. EST November 24, 2000. Dial 1-800-642-1687 (dial 1-706-645-9291 outside of North America). Please enter conference ID code #480400.

Safe Harbor Statement

Statements in this press release concerning the company's stock repurchase program, its fourth quarter revenues and earnings per share, its 2001 revenues, net income and earnings per share, 2001 semiconductor capital spending and demand for its 2001 shipments are forward-looking statements that involve risks and uncertainties. These uncertainties include, but are not limited to demands on our cash resources, our stock price, product demand and market acceptance risks, commitment of our customers, impact of competitive products and prices, product development, commercialization or technological delays or difficulties, and our ability to control costs, as well as other risks detailed in our Form S-1 Registration Statement on file with the Securities and Exchange Commission and in subsequent filings by Axcelis with the Commission. We do not incur any obligation to update these forward-looking statements.

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 Tokyo, Japan through its joint venture Sumitomo Eaton Nova. The Company's Internet address is: www.axcelis.com.