BTU International Reports Record Sales for Third Quarter.

BILLERICA, Mass.--(BUSINESS WIRE)--Oct. 14, 1999--

BTU International, Inc. (NASDAQ:BTUI) today announced a 27% increase in net sales for the third quarter ending September 26,1999. The third quarter sales increased to $17.8 million compared to $14.0 million for the third quarter last year. Net income increased by 75% to $701 thousand, or $0.10 per diluted share versus net income of $401 thousand or $0.06 per diluted share for the same quarter last year.

Nine months year to date net sales increased by 23% to $49.9 million compared to $40.5 million a year ago. Year to date net income was $1.9 million or $0.27 per diluted share, an increase of 84% versus $1.0 million or $0.14 per diluted share for the same period last year.

"Our increase in bookings and revenue was in part due to a gain in market share for medium and high end solder reflow systems, sold to major multinational electronic and PC board contract manufacturing companies. Earnings increased despite margin pressures due to product mix and price competition", stated Paul van der Wansem, President and CEO.

"Market research shows, particularly for the electronic assembly sector, that this market is expected to grow at double digit rates. To this end, we are continuing to invest in R&D and infrastructure in order to meet the changing requirements for this expanding industry", concluded Mr. van der Wansem.

This news release, other than historical financial information, includes forward-looking statements that involve risks and uncertainties, including quarterly fluctuations in results, the timely availability and acceptance of new products, general market conditions governing supply and demand, the impact of competitive products and pricing and other risks detailed in the company's SEC reports. Actual results may vary materially.

BTU International is a major supplier of thermal processing systems. The Company is the market leader for solder reflow furnaces used in surface mount applications for printed circuit boards. BTU manufactures furnaces used to package and seal integrated circuits and to process multi-chip modules. Its products are also used in other specialty applications, such as brazing and the sintering of ceramics, nuclear fuels and powdered metals, and the deposition of precise thin film coatings.

Condensed consolidated statements of operations and balance sheets for the Company are attached.

-0-

                        BTU INTERNATIONAL, INC.
                 Consolidated Statements of Operations
          (In thousands, except per share and share amounts)
                              (Unaudited)


                             Three Months Ended     Nine Months Ended
                            Sept. 26,  Sept. 27,  Sept. 26,  Sept. 27,
                                1999       1998       1999       1998

Net Sales                    $17,795    $14,039    $49,870    $40,454
Cost of Goods Sold            10,780      8,472     30,236     24,167
Gross Margins                  7,015      5,567     19,634     16,287
Selling, General and
   Administrative Expenses     4,845      4,017     13,546     11,664
Research, Development and
   Engineering                 1,148        964      3,448      3,371

Income from Operations         1,022        586      2,640      1,252
Interest Income
 (Expense), net                   26        (15)         9        (31)
Other Income, net                (44)        11          1         55
Income Before Income Taxes     1,004        582      2,650      1,276
Income Tax Provision             303        181        797        269
Net Income                      $701       $401     $1,853     $1,007

Earnings Per Share:
   Basic                       $0.10      $0.06      $0.27      $0.14
   Diluted                     $0.10      $0.06      $0.27      $0.14

Weighted Average Number
 of Shares Outstanding:
   Basic                   6,791,389  7,044,647  6,796,913  7,157,186
   Diluted                 7,010,419  7,060,245  6,950,456  7,200,950


                        BTU INTERNATIONAL, INC.
                      Consolidated Balance Sheets
                            (In thousands)

                                        September 26,     December 31,
                                            1999              1998
                                        (Unaudited)
Assets
      Cash and Investments                 10,620            10,594
      Accounts Receivable                  15,291            12,427
      Inventories                           9,397            10,084
      Other Current Assets                    392               411
      Property, Plant and  Equipment, Net   4,774             4,740
      Other Assets                            315               359

       Total Assets                        40,789            38,615


Liabilities and Stockholders' Investment
      Short-Term Debt                         224               226
      Other Current Liabilities             8,946             8,329
      Long-Term Debt                        5,058             5,167
      Deferred Taxes                        1,756             1,756

     Stockholders' Investment              24,805            23,137
     Total Liablities and
     Stockholders' Investment              40,789            38,615