Axcelis Raises Outlook for the Fourth Quarter 2003; Company Expects to Achieve Profitability on Higher Revenues.

Business Editors/High-Tech Writers

BEVERLY, Mass.--(BUSINESS WIRE)--Jan. 16, 2004

Axcelis Technologies, Inc. (Nasdaq: ACLS) today revised its guidance upward for the quarter ended December 31, 2003. The Company expects to report net revenue in the range of $94 - $98 million on shipments of $103 - $108 million, compared with the previous guidance given on October 27, 2003 of $88 - $93 million on shipments of $95 - $100 million. Worldwide revenue, including revenues of the Company's unconsolidated 50% owned joint venture in Japan, Sumitomo Eaton Nova ("SEN"), is expected to be at the high end of the range of the Company's original guidance of $150 - $160 million on worldwide shipments of $155 - $165 million. Gross margins are expected to be in the 36% - 37% range. Net income is expected in the range of $2 million to $4 million ($0.02 to $0.04 per share). Previous guidance forecasted breakeven operating results.

Mary Puma, president and CEO, commented, "We continued to see greater demand for our products, especially ion implanters, as 2003 ended. In fact the growth in new Axcelis orders will exceed industry projections and be up approximately 40% for the fourth quarter sequentially. This order growth, combined with the tremendous leverage in our leaned out cost structure, leaves us feeling very positive about Axcelis' revenue and earnings growth during calendar year 2004."

The company will release fourth quarter financial results after the close of the market on January 28, 2004. Details of the conference call and live webcast are given below.

Fourth Quarter 2003 Earnings Conference Call

Please join us for our fourth quarter conference call on January 28, 2004 at 5:00 pm EST. The call will be available to interested listeners via an audio webcast that can be accessed through Axcelis' home page at www.axcelis.com, or by dialing 1-800-482-9816 (1-719-457-2732 outside North America). Participants calling into the conference call will be requested to provide the company name: Axcelis Technologies, the conference leader: Mark Namaroff, and pass code: Axcelis Q4. A telephone replay will be available from 8:00 pm EST on January 28, 2004 until 11:59 pm EST on February 4, 2004. Dial 1-888-203-1112 (1-719-457-0820 outside North America), and enter conference ID code #305525. A webcast replay will be available from 8:00 pm EST on January 28, 2004 until 5:00 pm EST February 27, 2004.

Safe Harbor Statement

This document contains forward-looking statements under the SEC safe harbor provisions. These statements are based on management's current expectations and should be viewed with caution. They are subject to various risks and uncertainties, many of which are outside the control of the Company, including the conversion of orders to revenue in any particular quarter, or at all, our ability to implement successfully our profit plans, the continuing demand for semiconductor equipment, relative market growth, continuity of business relationships with and purchases by major customers, competitive pressure on sales and pricing, increases in material and other production costs that cannot be recouped in product pricing and global economic, political and financial conditions. These risks and other risk factors relating to Axcelis are described more fully in the most recent Form 10-K filed by Axcelis and in other documents filed from time to time with the Securities and Exchange Commission.

About Axcelis Technologies, Inc.

Axcelis Technologies, Inc., headquartered in Beverly, Massachusetts, provides innovative, high-productivity solutions for the semiconductor industry. Axcelis is dedicated to developing enabling process applications through the design, manufacture and complete life cycle support of ion implantation, rapid thermal processing, and cleaning and curing systems. Axcelis Technologies has key technology centers in Beverly, Massachusetts, and Rockville, Maryland as well as in Toyo, Japan through its joint venture, SEN. The company's Internet address is: www.axcelis.com.