ASYS

Tempe, AZ – February 15, 2006 – AMTECH SYSTEMS, INC. (NASDAQ: ASYS), a global supplier of production and automation systems and related supplies for the Solar Cell, Semiconductor, silicon wafer and microelectromechanical system (MEMS) industries, reported results yesterday for its first fiscal quarter ended December 31, 2005.

Revenues for the first quarter of fiscal 2006 were $7.9 million, a 10% increase over the comparable period in fiscal 2005 and a 26% sequential increase over revenues reported in the fourth quarter of fiscal 2005. The increase in revenues is attributable to higher shipments to the solar cell industry, the delivery of new products, two etchers and a vertical furnace, and increased shipments of automation equipment. The revenues of the semiconductor equipment segment grew 10% to $6.2 million in the most recent quarter. We continued to experience strong demand for products in our polishing supplies segment where revenues increased 12% over the comparable period in fiscal 2005.

Net income for the quarter ended December 31, 2005 was $471,000 or $0.14 per diluted share, approximately 600% higher than the $68,000, or $0.02 per diluted share, for the quarter ended December 31, 2004. Included in net income for the first quarter of fiscal 2006 was a $41,000 non-cash charge for compensation expense resulting from the adoption of Statement of Financial Accounting Standards No. 123(R), “Share Based Payments” which requires the expensing of the fair value of stock option grants. Gross Margins were 32.1% compared 29.8% for the same period of the prior year despite the deferral of $0.7 million of gross profit during the current reporting period, compared to the recognition of $0.1 million of previously deferred profit during the first quarter of fiscal 2005.

As of December 31, 2005, Amtech Systems’ order backlog had increased sequentially 23% to $17.7 million, from $14.4 million at September 30, 2005 and was 110% higher than it was on December 31, 2004. Backlog includes deferred revenue and customer orders that are expected to ship within the next 12 months.

Mr. J.S. Whang, President and Chief Executive Officer, stated, “This was a great quarter for Amtech, particularly in light of the significant increase in the profit deferred to future periods and the incremental non-cash costs associated with the expensing of stock options. With the strength of the Solar Cell market, we expect revenues to increase in fiscal year 2006, compared to fiscal 2005. We continue to improve our marketing strategies in an effort to increase the industry’s awareness and adoption of automation solution for horizontal furnaces. As we achieve critical mass, and take advantage of our global manufacturing and support structure, we believe that successful execution of this and other strategic marketing initiatives will result in improved profitability for the company.”

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by Amtech Systems, Inc.) contains statements that are forward-looking. All statements other than statements of historical fact are hereby identified as “forward-looking statements,” as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward looking information involves a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those discussed or anticipated by management. Potential risks and uncertainties include, among other factors, industry specific and general business conditions, competitive market conditions, success of Amtech’s growth and sales strategies, the possibility of customer changes in delivery schedules, cancellation of orders, potential delays in product shipments, delays in obtaining inventory parts from suppliers and failure to satisfy customer acceptance requirements.

This earnings release should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2005, as amended, and its Quarterly Report on Form 10-Q for the quarter ended December 31, 2005.

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