Axcelis Reiterates Second Quarter Financial Outlook.

Business Editors/High-Tech Writers

BEVERLY, Mass.--(BUSINESS WIRE)--May 20, 2004

Mary Puma, president and CEO of Axcelis Technologies, Inc. (NASDAQ: ACLS), reiterated financial guidance for Axcelis' fiscal second quarter, in a presentation she made today at Axcelis' third annual analyst meeting.

For the fiscal second quarter, which ends June 30, 2004, worldwide revenues (including SEN) are expected to increase to between $240 million and $250 million. Net revenues (excluding SEN) are anticipated to be in the range of $147 million to $152 million. Gross margins are projected to be between 42% and 44%. Net income is expected to be $24 million to $28 million ($0.23 to $0.27 per diluted share). The company also expects to generate $15 million to $20 million in cash during the second quarter.

"We're extremely pleased with the strong market fundamentals we're seeing in all segments, and have confidence the market will continue to expand throughout this year and possibly into next," Puma said. "Orders remain strong for Axcelis through the second quarter and we anticipate that orders in the second half of the year will continue at these high levels, setting the stage for a strong 2005. In addition, Axcelis' new products for 65nm manufacturing provide significant growth opportunities for the future. This growth, coupled with our strong operating leverage, will continue to drive increased profitability through 2004 and into 2005."

Axcelis believes that the information regarding the aggregate quarterly revenues of SEN, a 50% owned unconsolidated subsidiary of Axcelis, combined with Axcelis' own sales for the quarter, is useful to investors. SEN's ion implant products are covered by a license from Axcelis and therefore the combined sales revenues of the two companies indicate the full market penetration of Axcelis' technology.

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.