Axcelis Technologies Acquires Dry Strip Equipment Supplier Matrix Integrated Systems; Matrix Products, Intellectual Property to Strengthen Axcelis' Dry Cleaning Position.

Business Editors/High-Tech Writers

SEMICON West 2003

BEVERLY, Mass.--(BUSINESS WIRE)--July 7, 2003

Axcelis Technologies Inc. (NASDAQ: ACLS), today announced the acquisition of Matrix Integrated Systems, Inc., a photoresist dry strip equipment supplier based in Richmond, Calif. for $14 million in cash. The acquisition expands and strengthens Axcelis' dry strip technology portfolio, and supports the company's long-term diversification strategy.

"The acquisition of Matrix moves us another step closer to our goals of being a global leader, building critical mass and driving leadership positions in each of our served markets," said Mary Puma, president and CEO of Axcelis.

"Matrix is well known for its fast and reliable dry strip platform, particularly in front-end-of-line applications, as well as its talented technology development team," Puma added. "When we combine these strengths with Axcelis' outstanding success in back-end-of-line dry strip with our new ES3Lk system, we end up with a unique, comprehensive product portfolio for the full range of dry strip needs in transistor and interconnect formation."

In 2002, Axcelis ranked as the third largest supplier of dry strip systems, up from fourth place in 2001. This growth came as a result of the company's solid 300mm position and adoption of back-end-of-line strip over low-k technology. Matrix has earned a reputation as a strong supplier of front-end-of-line (FEOL) dry strip technology based on the strength of its plasma-based dry strip platform, which enhances Axcelis' current dry strip technology portfolio and strengthens Axcelis' position in the expanding dry strip market. Demand for dry strip tools in 300mm manufacturing is expected to rise significantly in the next few years. Matrix has already achieved key 300mm FEOL tool insertions in both 130 nanometer production and 90 nanometer pilot production. According to Dataquest, 300mm FEOL dry strip applications are expected to represent 29 percent of the entire dry strip market by 2005, up from 19 percent in 2002. Axcelis and Matrix's combined 2002 market share is 18.2 percent.

"This acquisition ensures Matrix and its customers have access to the many resources necessary to participate in this rapidly changing market," said Jim Marshall, CEO of Matrix. "Axcelis' global infrastructure and leading edge technology development capabilities will allow us to service customers with an increased level of customer commitment and offer a product suite to meet all their dry strip needs. This acquisition also acknowledges the success we have achieved in our turnaround efforts over the past few years to re-establish Matrix as a viable dry strip competitor. With Axcelis' 25 years of leadership and experience and Matrix's 18 years of experience in the semiconductor equipment industry, there is no doubt we will all benefit from this acquisition."

To learn more about Axcelis and its new product offerings, including the Matrix products, please visit its exhibit at the upcoming SEMICON West trade show, in San Francisco, Calif., from July 14-16, 2003. Axcelis is located in Booth 702 in the South Hall.

Conference Call and Webcast

Please join us for a conference call on July 7th at 12:00 noon EDT where we will discuss the Matrix acquisition and answer questions from the investment community. 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 1-800-915-4836 (1-973-317-5319 outside North America). A telephone replay will be available from 5:00 p.m. EDT on July 7, 2003 until 11:59 p.m. EDT on July 28, 2003. Dial 1-800-428-6051 (1-973-709-2089 outside North America), and enter conference ID code # 298350. A Webcast replay will also be available on our Web site, www.axcelis.com, from 5:00 p.m. EDT on July 7, 2003 until 11:59 p.m. EDT on July 28, 2003.

About Matrix Integrated Systems, Inc.

Matrix has been providing dry plasma resist strip technology to the semiconductor industry since 1985, with a worldwide installed base of more than 900 systems. Matrix was a privately held company based in Richmond, California, with offices in Belgium to support the European market, and representatives for sales and service throughout Asia.

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.