Brooks Automation, Inc. Optimistic on FY 2000; Sales to More Than Double Over FY 1999.

CHELMSFORD, Mass.--(BUSINESS WIRE)--Nov. 1, 1999--

Brooks Automation, Inc. (Nasdaq:BRKS) announced today that business trends in the semiconductor equipment industry, coupled with an expanded portfolio of products and services from recently acquired companies, has brightened its outlook for FY2000 which started October 1, 1999. The assessment was made as senior executives returned from Yongin-City, Kyungki-Do, Korea for the formal opening on Wednesday, October 27 of Brooks Automation Asia (BAA), a joint venture with Samsung Electronics Co. Ltd., to develop and manufacture systems for flat panel display and to provide low cost production for semiconductor applications.

Robert J. Therrien, President and Chief Executive Officer of Brooks Automation, Inc., commented, "I look back on FY99 with a sense of pride over what Brooks has done in response to customer needs. The core tool automation division has introduced a line of high performance atmospheric robotic modules suitable for harsh processing environments, secured atmospheric direct drive robotics and a Silicon Valley production facility with the acquisition of Smart Machines, Inc., launched a series of bridge tools to assist OEMs in the transition from 200mm to 300mm semiconductor process tools, and introduced our new Java based tool control software.

"Similarly the factory automation division, building on the successful acquisition of FASTech in September 1998, has added a series of "Best-in-Class" software and transitional environment companies consisting of Hanyon Technology, Domain Manufacturing, and Infab. We continue to pursue the strategy with our on-going negotiations for the acquisition of AutoSimulation, Inc. and Auto-Soft Corporation. Together, these companies offer optimization solutions designed to increase fab performance through overall equipment efficiency, process control and optimized throughput. Customers can now buy integrated automation solutions from a single supplier that are more cost effective to buy, quicker to install, and easier to maintain."

"The combined effect of strength in our core business and the company's growth through acquisitions completed or expected to be closed in the first quarter of FY 2000 leads us to believe that FY 2000 will see significant improvement in revenue. We expect results for FY 1999, which we will report in mid-November 1999, to show revenues of approximately $100 million and a profit in line with current first call estimates of $.03 for the core business. However, due in part to the impact of the pooling accounting treatment for the Smart Machines acquisition and, with respect to the losses to one-time charges related to transaction, restructuring and reorganization costs, the Company expects a material loss of an EPS basis in FY 1999."

"We will be measuring our progress in returning to profitability in FY 2000 by focusing on earnings before goodwill amortization (EBG), which excludes from earnings the effects of amortization of goodwill that arises from acquisitions. We believe that this provides a more appropriate measure of performance in the context of rapid growth through acquisitions. We anticipate EBG for FY 1999 to exceed ($0.40) per share exclusive of one-time charges. Assuming that present business trends and current company structure remain unchanged and that ASC/ASI close in the December quarter, we believe that revenues for FY 2000 are likely to be in the range of $230-$240 million and that EBG is likely to be in the range of $0.65 to $0.70 per share, as compared to earnings which include the effects of amortization of goodwill of between $(0.15) and $(0.20) per share. We believe that the semiconductor investment cycle will continue into FY 2001, and that Brooks' revenues could grow by approximately 40% on a year-over-year basis and that EBG could more than double over FY 2000, and EPS becomes profitable. We expect to leverage our cost structure and aim for operating income as a percent of sales to be 6-7% in FY 2000, growing to 11-12% in FY 2001. With the ongoing development in our atmospheric business and our commitment to Brooks Automation Asia, FY 2000 becomes an investment year that we believe sets the platform for a remarkable payoff in FY 2001 and beyond."

"We have never felt better about our ability to meet customer needs for more complete, integrated automation solutions, the result of bringing together the best people, the best practices and the best products in the semiconductor automation industry."

Brooks Automation

Brooks Automation Inc. is a leading supplier of integrated automation solutions for the global semiconductor, data storage, and flat panel display manufacturing industries. As an established market leader in hardware and software automation, Brooks continues to pioneer "Best-in-Class" technologies that outperform their competitors - from vacuum and atmospheric robots, cluster tool platforms and modules, ultra clean mini-environments for isolating processing equipment and wafers - to factory and tool automation software and integration services. Both OEM and fab customers leverage Brooks' automation products and services to optimize total fab performance in dynamic manufacturing environments. The Company has ISO 9001 certification, is headquartered in Chelmsford, MA and has direct operations in the United States, Canada, Europe, Japan, Korea, Taiwan, and Singapore. The company's worldwide address is http://www.brooks.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: The foregoing discussion contains forward-looking statements related to the proposed transactions, the businesses being acquired, and future financial results. These statements involve known and unknown risks and uncertainties including, without limitation, risks relating to the Company's dependence on the cyclical semiconductor industry, the Company's dependence on relatively few customers for a significant portion of its revenues, the Company's reliance on sales to OEM customers and the lengthy sales cycles of those customers, the ability of the Company to continue to successfully develop and market new products and product enhancements on a timely basis, the risk that the proposed acquisition of Auto-Soft and ASI may not be completed, be completed later than anticipated, or be completed on terms less favorable than those contained in the letter of intent, the ability to integrate recent acquisitions into the Company, the ability to successfully complete intended acquisitions, the highly competitive nature and rapid technological change that characterize the industries in which the Company competes, the risk that Year 2000 problems could disrupt the Company's business, and other risks and uncertainties described in the Company's reports and registration statements filed with the Securities and Exchange Commission. As a result, there can be no assurance that the Company's future results will not be materially different than those projected. The forward-looking statements contained herein speak only of the Company's expectations as of the date of this press release. The Company also operates in an industry sector where securities' values are highly volatile and may be influenced by economic and other factors beyond the Company's control. The value of the Company's securities may also be affected by risks relating to devising supplemental financial statement formats that convey an accurate understanding of the Company's operations. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which any such statement is based.