BTU International Reports Third Quarter 2008 Results.

Quarterly net income up 29 percent year-over-year and 135 percent quarter-over-quarter

NORTH BILLERICA, Mass. -- BTU International, Inc. (Nasdaq: BTUI), a leading supplier of advanced thermal processing equipment for the alternative energy and electronics manufacturing markets, today announced its financial results for the third quarter of fiscal 2008, which ended on September 28, 2008.

Third quarter net sales were $20.6 million, up 25 percent compared to $16.5 million for the same quarter a year ago and up compared to $20.4 million in the preceding quarter. Net income for the third quarter of 2008 was $0.7 million, or $0.07 per diluted share, up 29 percent compared to net income of $0.5 million, or $0.06 per diluted share, in the third quarter of 2007 and up 135 percent compared to net income of $0.3 million, or $0.03 per diluted share, in the preceding quarter.

Net sales for the first nine months of 2008 were $57.6 million, up 27 percent compared to $45.5 million for the first nine months of 2007. Net income for the nine months ended September 28, 2008, was $1.1 million, or $0.11 per diluted share, down compared to net income of $1.4 million, or $0.15 per diluted share for the first nine months of 2007.

Comments

Commenting on the company's third quarter performance, Paul J. van der Wansem, BTU chairman and CEO, said, "Earnings were ahead of our guidance with revenues in the expected range. Margins were helped by a favorable product mix and a large rebuild order. The balance sheet gained strength with positive cash flow for the quarter and our cash balance increased by almost $4 million to $29.0 million during the nine month period."

Outlook

Van der Wansem added, "Given the current challenging macroeconomic environment, we expect a slowdown in equipment spending especially in the electronics industry starting now and running through at least the first half of 2009. Although the outlook is clouded, we expect to see increased business in the solar equipment market. The slowdown, coupled with some push outs in equipment deliveries, will impact this year's fourth quarter, and we expect to see revenues down by approximately 20 percent from the preceding quarter with a small loss in the $0.03-$0.09 per share range.

"The driving forces for a cleaner environment coupled with the need for an increase in energy generation worldwide are expected to result in expansion by most of our customers in the alternative energy markets. Our new product developments are ongoing and we are on target to make alternative energy a significant, if not the major, part of our equipment business in the near future."

Teleconference and Simultaneous Webcast

BTU will be discussing its financial results, along with its outlook for the fourth quarter of 2008, in a conference call to be held today, October 28, at 5:00 p.m. Eastern Time. The dial-in number to participate in the conference call is 877-741-4253. A webcast of the conference call will be available on BTU's website at www.btu.com. Replays of the call will be available through November 14, and can be accessed at this website or by phone at [phone], passcode: 7718459.

About BTU International

BTU International is a market-leading, global supplier of advanced thermal processing equipment to the alternative energy and electronics manufacturing markets. BTU equipment is used in solar cell, nuclear fuel and fuel cell manufacturing as well as in the production of printed circuit board assemblies and semiconductor packaging. BTU has operations in North Billerica, Massachusetts and Shanghai, China with direct sales and service in the U.S.A., Asia and Europe. Information about BTU International is available at www.btu.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995

This news release contains express or implied forward-looking statements regarding, among other things: (i) the company's expectation of growth in the alternative energy business and the future mix of business, (ii) the company's expectation of fourth quarter 2008 revenues and earnings, and (iii) and the company's expectation for continued growth and success. Such statements are neither promises nor guarantees but rather are subject to risks and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. Such statements are made pursuant to the "safe harbor" provisions established by the federal securities laws, and are based on the assumptions and expectations of the company's management at the time such statements are made. Important factors that could cause actual results to differ include 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 filings with the Securities and Exchange Commission, including but not limited to the company's Quarterly Report on Form 10-Q for the quarter ended June 29, 2008. Actual results may vary materially. Accordingly, you should not place undue reliance on any forward-looking statements. All information set forth in this press release is as of October 28, 2008, and, unless otherwise required by law, the company disclaims any obligation to revise or update this information in order to reflect future events or developments.

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