SAES Getters Reports Fourth Quarter Results.

MILAN, Italy--(BUSINESS WIRE)--March 26, 1998--SAES Getters S.p.A. (Nasdaq: SAESY) today announced that for the fourth quarter ended December 31, 1997, consolidated net revenues rose 52.1% to Lit. 71,672 million from Lit. 47,111 in the year ago period.

Results reflect a 49.6% growth in the volume of products sold and the positive (2.5%) net impact from the devaluation of the lira, mainly against the US dollar.

Net income was negatively affected by the Asian economic situation, particularly by currency-related losses (amounting to Lit. 4,494 million), mainly incurred upon conversion of Korean subsidiary loans primarily from US dollars into Korean Won. This led to a decline in net income to Lit. 2,135 million from Lit. 4,094 million in the fourth quarter of 1996. Net income per Ordinary Share and Savings Share was Lit. 90.9 in the fourth quarter, compared to Lit. 174.2 in the year ago period.

Gross profit for the fourth quarter ended December 31, 1997, was Lit. 28,797 million compared to Lit. 19,868 million in the three months ended December 31, 1996. As a percentage of net sales, gross profit decreased to 40.2% from 42.2% in the fourth quarter of 1996, primarily due to the inclusion of a lower margin, non recurring, sale of machinery to Nanjing SAES Huadong Getters Company Ltd. (SAES Getters Group's 65% owned Chinese joint venture), for an amount of Lit. 11,861 million. Excluding the effect of the above sale, the Group gross margin would have been 48.4% in the fourth quarter of 1997, compared to the year ago period. This sharp increase was mainly due to the absorption of fixed costs on a greater sales volume.

Operating income for the fourth quarter increased to Lit. 9,677 million from Lit. 2,957 million in the year ago period. The dramatic increase compared to the corresponding period of 1996 resulted from the absorption of fixed cost on a greater sales volume, increased operating efficiencies and the positive net impact of the devaluation of the lira, mainly against the US dollar.

Other expenses, net, declined to Lit. 1,300 million compared to other income of Lit. 82 million in the fourth quarter of 1996, mainly due to non-recurring costs associated with severance packages paid to some employees.

Income taxes were Lit. 3,497 million in the fourth quarter ended December 31, 1997, compared to Lit. 1,761 million in the year ago period. The significant increase is due to a change in the tax rate used to calculate deferred income taxes for the Italian companies in the Group, in accordance with Italian GAAP. In addition, there was an increased contribution by the Company's subsidiaries subject to higher rates of taxation.

For the full year ended December 31, 1997 net sales rose 23.4% to Lit. 224,403 million from Lit. 181,832 million in the year ago period. Net income for the full year 1997 was Lit. 22,848 million compared to Lit. 17,710 million in 1996. Net income per Ordinary Share and Savings Share was Lit. 959.9 and Lit. 989.9 respectively, compared to Lit. 822.2 and Lit. 852.2, respectively for the full year 1996.

"We are pleased with our continued progress in further penetrating the worldwide market for getters and in the resulting strong sales growth," said Paolo della Porta, Chief Executive Officer of SAES Getters Group. "We are obviously disappointed with the negative impact on our profit caused by the economic situation in Asia. However, given the devaluation of the Won, the competitiveness of goods manufactured in Korea has dramatically improved. To take advantage of this situation, we are currently increasing the manufacturing capacity in our Korean subsidiary."

Barium Getters Division:

Barium Getters Division net sales increased approximately 22.5% to Lit. 26,967 million in fourth quarter of 1997 compared to Lit. 22,022 million in the same period of 1996. This increase was due to an approximate 22.6% increase in the quantity of evaporable getters sold, primarily those used in color cathode ray tubes, and was offset slightly by a strengthening of the lira against other currencies.

For the full year ended December 31, 1997 revenues in the Barium Getters Division were Lit. 98,585 million, a 15.1% increase compared to the full year ended December 31, 1996.

"This growth was in line with management's expectations," said Mr. della Porta. "We continue to benefit from solid market demand for the main products in the Barium Getters Division, as manufacturers try to meet the increased worldwide demand for high-end color TV sets and computers monitors."

Industrial Applications Division:

Net sales in the Industrial Applications Division were Lit. 9,865 million in the fourth quarter compared to Lit. 9,579 million in the same period of 1996. This growth was due to a slight increase in sales volume and the positive impact of the devaluation of the lira mainly against the US dollar.

For the full year ended December 31, 1997, revenues in the Industrial Applications Division were Lit. 39,754 million, an 8.9% increase compared to the full year ended December 31, 1996.

"We successfully moved some new products into mass production at the end of 1997, particularly in the area of lighting," commented Mr. della Porta. "Our proprietary Combogetter vacuum insulated panel continues to meet with positive market response. In fact, a top European manufacturer is starting to produce some of its refrigerator models with vacuum insulated panels, and many other leading companies in the industry are seriously considering adopting the Combogetter."

Gas Purification Division:

Net sales for the fourth quarter increased approximately 55.7% to Lit. 22,786 million compared to Lit. 14,633 million in the year ago period. The Division experienced a 47.6% increase in sales volume, led by sales of purifiers, analyzers and UHP valves, mainly for the completion of new fabs, previously in progress during 1997. Results were positively impacted to a lesser degree by the devaluation of the lira.

For the full year ended December 31, 1997 revenues of Gas Purification Division were Lit. 71,734 million, a 23.5% increase compared to the full year ended December 31, 1996.

Mr. della Porta commented, "We are carefully monitoring the market, especially after the slowdown in semiconductor industry, which was compounded by the Asian economic situation. SAES Getters Group remains committed to the semiconductor and high-tech markets, which are a cornerstone of our long-term strategy. These markets are becoming more dynamic and competitive, requiring that organizations become even more flexible in order to successfully compete. For this reason we are seeking to further streamline this Division through a centralization of certain staff functions and the adoption of an overall leaner infrastructure."

Looking Forward:

Mr. della Porta continued, "The explosive growth experienced by the semiconductor industry over the last decade has provided us with a constant stream of new products and geographic markets to target. Among other areas, to meet the large, relatively untapped, Chinese market for our products, we recently formed the SAES Getters Technical Service (Shanghai) Co. Ltd, 100% owned by SAES Getters Group. This is the latest step in our globalization strategy and is driven by the opportunity to serve the increasing technical requirements of the Chinese semiconductor, high-purity gases and other high-tech industries. This company will have a state-of-the-art Gas Analysis Laboratory, and is one of only a few enterprises providing such technical services in China."

SAES Getters S.p.A. (the Parent Company) Annual Shareholders Meeting will be held on Tuesday, April 28. Among other things, shareholders will vote on the Board of Director's proposal to declare a 1997 dividend of Lit. 330, Lit. 350, and Lit. 360 for the Ordinary, Preference and Savings Shares, respectively.

SAES Getters is the world leader in the production of gettering devices for cathode ray tubes used in tv sets and computers, lamps, industrial and scientific applications, gas purifiers, trace impurities analyzers and services in handling ultra pure gases for the semiconductor industry. A getter is a metal alloy component that is used to produce and maintain very high vacua. In May 1996, SAES Getters became the first Italian company to be listed on the Nasdaq stock market. The Company's ADRs trade under the symbol "SAESY". For more information, visit the Company's website at http://www.saesgetters.com.

Forward-Looking Statements

This news release contains forward-looking statements, which are based upon current expectations and involve a number of risks and uncertainties. There are a number of important factors that could cause actual results to differ materially from those expressed in any forward-looking statements made by the Company. These factors include the Company's ability to introduce new products at planned costs and on planned schedules, the Company's ability to maintain key client relationships, and the environments of the various economies in the countries the Company conducts business. Investors are also directed to consider other risks and uncertainties discussed in the documents filed by the Company with the Security and Exchange Commission. The Company undertakes no obligation to publicly release the result of any revision to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. -0-

   SAES Getters S.p.A. and Subsidiaries Consolidated Balance Sheets


Millions of Italian Lire       December 31, 1997  December 31, 1996
                                   (unaudited)

Assets
   Current assets                    230,224            229,823
   Property, plant and
    equipment, net                    58,312             51,442
   Assets held for
    sale, net                          2,330              2,330
   Intangible assets                  12,004             14,064
   Investments and other
    financial assets                  15,832             17,943
      Total Assets                   318,742            315,602

Liabilities and
shareholders' equity
   Current liabilities                58,548             74,481
   Long-term liabilities              15,440             15,287
   Shareholders' equity              244,754            225,834
      Total Liabilities
      and Shareholders' Equity       318,742            315,602
-0-

SAES Getters S.p.A. and Subsidiaries Consolidated Statements of Income


                          Three Months Ended     Year Ended
Millions of Italian Lire       December 31,      December 31,
Except Per Share Data          1997    1996      1997    1996
                               (unaudited)  (unaudited)

Total net sales              71,672   47,111   224,403  181,832

Total cost of sales          42,875   27,243   121,703   90,882

Gross profit                 28,797   19,868   102,700   90,950

Research and development
 expenses                     3,898    3,946    15,540   15,451
Selling expenses              8,497    7,394    30,567   28,275
General and administrative
 expenses                     6,725    5,571    23,615   21,328
Operating expenses           19,120   16,911    69,722   65,054

Operating income              9,677    2,957    32,978   25,896

Interest and other financial
 income (expenses), net       1,749    2,587     5,755    4,968
Foreign exchange gains
 (losses), net               (4,494)     229      (414)  (1,959)
Other income
 (expenses), net             (1,300)      82       (92)     (48)

Income before taxes           5,632    5,855    38,227   28,857

Income taxes                  3,497    1,761    15,379   11,147

Net income                    2,135    4,094    22,848   17,710

Net income per Ordinary
 Share                         90.9    174.2     959.9    822.2
Net income per Preference
 Share                         90.9    174.2     979.9    842.2
Net income per Savings
 Share                         90.9    174.2     989.9    852.2

CONTACT: SAES Getters S.p.A., Italy

Giuseppe Rolando, 011-392/93-178-1

Mauro Creatini, 011-392/93-178-1

or

Dewe Rogerson Inc., USA

David Pasquale, 212/688-6840