BTU Reports Second Quarter.

Business/Technology Editors

BILLERICA, Mass.--(BUSINESS WIRE)--July 25, 2002

BTU International, Inc. (NASDAQ:BTUI) today announced results for the second quarter ending June 30, 2002. Sales for the second quarter were $9.4 million compared to $14.0 million for the same quarter last year, a decrease of 33.3%. The net loss for the second quarter was $1.5 million or $0.21 per basic share versus a net loss of $1.6 million or $0.23 per basic share for the same quarter of 2001.

For the six months ended June 30, 2002, sales were $17.9 million compared to $30.6 million for the same period last year, a decrease of 41.6%. The net loss for the first six months was $2.8 million, or $0.40 per basic share versus a net loss of $1.5 million, or $0.21 per basic share for the same period last year.

"The second quarter performance was as expected, with sales higher and operations losses lower than in the first quarter," stated Paul Van der Wansem, Chairman. "During the quarter, we remained focused on reducing inventory levels and maintaining our strong cash position. Although, under these difficult market conditions we are running at a loss, we continue to work at reducing our costs and controlling our use of funds."

In conclusion Mr. van der Wansem stated: "BTU welcomes to its Board of Directors two new members, our new President and CEO Mark R. Rosenzweig, and John E. Beard, who has served as Secretary to the Board."

Mark Rosenzweig added: "Unfortunately, the market upturn in electronics has failed to materialize and we continue to bump along the bottom of our markets. We will continue to focus on productivity, costs, cash and new product development in the quarters ahead as we position ourselves for the eventual market rebound."

BTU will be discussing its financial results, along with its outlook for the third quarter of 2002, in a conference call tomorrow, Friday, July 26, at 11:00 AM EST. A webcast of the conference call will be available on BTU's website www.btu.com. Replays of the call will be available until August 9, 2002, and can be accessed at www.btu.com or by phone at 1-888-566-0149, pass code BTU.

BTU International, with world headquarters in North Billerica, Massachusetts, USA, is a major supplier of thermal processing equipment to the electronics, materials and semiconductor sectors. BTU manufactures a wide range of equipment for semiconductor packaging applications including state of the art wafer bumping, solder reflow for printed circuit board assembly, where the company is the market leader, and in materials processing applications requiring high temperatures and precise atmosphere control. BTU operates worldwide with direct sales and service offices in Asia (China, Singapore, Malaysia and the Philippines), and Europe (England and France).

This news release, other than historical financial information, includes forward-looking statements that involve known and unknown risks and uncertainties, including quarterly fluctuations in results. Such statements are made pursuant to the "safe harbor" provisions established by recent securities legislation, 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. Actual results may vary materially. Accordingly, you should not place undue reliance on any forward-looking statements. Unless otherwise required by law, the company disclaims any obligation to revise or update such forward-looking statements in order to reflect future events or developments.

BTU International is headquartered at 23 Esquire Road, North Billerica, MA 01862, USA TEL: [phone], FAX: [phone], E-MAIL: [e-mail], INTERNET: http://www.btu.com. In addition, BTU has sales and service offices in Europe and Asia.

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


                         Three Months Ended       Six Months Ended
                         June 30,    July 1,     June 30,    July 1,
                          2002        2001        2002        2001

Net Sales             $     9,360 $    14,037 $    17,868 $    30,618
Cost of Goods Sold          6,239      10,831      12,179      20,700
Gross Margin                3,121       3,206       5,689       9,918
Selling, General and
 Administrative Expenses    3,835       4,254       7,419       9,345
Research, Development
 and Engineering              911       1,383       1,858       2,884

(Loss) Income from
 Operations                (1,625)     (2,431)     (3,588)     (2,311)
Interest (Expense)
 Income, net                  (39)        (47)        (77)        (49)
Other (Expense)
 Income, net                    2         (11)          2          (6)
(Loss) Income Before
 Income Taxes              (1,662)     (2,489)     (3,663)     (2,366)
Income Tax (Benefit)
 Provision                   (197)       (921)       (897)       (875)
Net (Loss) Income     ($    1,465)($    1,568)($    2,766)($    1,491)

Earnings Per Share:
   Basic              ($     0.21)($     0.23)($     0.40)($     0.21)
   Diluted            ($     0.21)($     0.23)($     0.40)($     0.21)

Weighted Average Number
 of Shares Outstanding:
   Basic                6,870,244   6,966,509   6,855,551   6,952,798
   Diluted              6,870,244   6,966,509   6,855,551   6,952,798




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


                                           June 30,      December 31,
                                             2002           2001
                                         (Unaudited)
Assets
 Cash and Investments                      $12,298        $15,716
 Accounts Receivable                         9,136          5,626
 Inventories                                 6,766          9,051
 Other Current Assets                        1,375          2,016
 P.P. & E., net                              4,539          5,118
 Other Assets                                  332            309

                                           $34,446        $37,836



Liabilities and Stockholders' Investment
 Short-Term Debt                           $   330        $   297
 Other Current Liabilities                   4,784          5,541
 Long-Term Debt                              4,190          4,347

 Stockholders' Investment                   25,142         27,651

                                           $34,446        $37,836