AMTECH SYSTEMS INC. RELEASES EARNINGS,
ANNOUNCES $5.1 MILLION IN NEW SALES ORDERS
AND UPDATES GUIDANCE FOR FISCAL 2005

Tempe, AZ—August 16, 2005 -- Amtech Systems, Inc. (Nasdaq: ASYS), a global supplier of production and automation systems and related supplies for the semiconductor, silicon wafer, solar cell and microelectromechanical system (MEMS) industries, today reported its operating results for the third quarter ended June 30, 2005.

Revenues for the third quarter of 2005 totaled $5.5 million, an increase of 15% from $4.8 million in the third quarter of 2004. Revenues for the nine months ended June 30, 2005 were $21.6 million, an increase of 50% from $14.4 million for the nine months ended June 30, 2004. Revenues from Bruce Technologies, acquired in July 2004, contributed $0.9 million and $5.0 million, respectively, to the increase in revenue for the third quarter and year-to-date, compared to the same periods last fiscal year. Year-to-date revenues of our polishing supplies segment increased 20% compared to the same period in 2004. This was due to strong sales of our insert carriers.

Net income during the third quarter of 2005 was $0.1 million, or $.04 per diluted share, compared to a loss of $0.2 million, or ($.09) per diluted share, in the third quarter of 2004. Net income during the nine months ended June 30, 2005 was $0.7 million, or $.24 per diluted share, compared with a loss of $0.1 million, or ($.06) per diluted share, for the comparable period in 2004. The improved profitability resulted mainly from recognition of previously deferred revenue and associated deferred profit.

Amtech is pleased to announce new orders booked subsequent to the close of the third fiscal quarter of 2005, including the receipt of $5.1 million in new orders for its Bruce Technologies horizontal diffusion furnaces and its proprietary APEX Process Management Software System complete with 3rd-party automation. The customer, a large European company establishing a new fab in Asia, placed the order for multiple Bruce Technologies BDF-Series 200mm digitally controlled horizontal diffusion furnaces for delivery in the second quarter of fiscal year 2006.
The order nearly doubles the Company’s existing backlog which is currently in excess of $13 million (including these newly announced orders) and will add to one of the largest installed bases of horizontal diffusion equipment in the world. This order contributes greatly to the Company’s continued growth and confirms its brand recognition among the world’s premier semiconductor manufacturers. Amtech has become one of




the world’s largest manufacturers of semiconductor diffusion horizontal furnaces and is the only known supplier of these products with full-scale production facilities on two continents, in the USA and Europe.
Additional large new orders were also received subsequent to the close of the third fiscal quarter. A $0.9 million order for two of the company’s Partner2000 etching machines was received in July for shipment to Asia. This is the first such order for this product line, which the company acquired in 2003. A $0.3 million order for Bruce Technology equipment was received in August from a strategic North American customer.
Because these new orders were received later than originally anticipated and due to delays in customer schedules for other projects, fiscal 2005 revenues and earnings will be below those previously estimated. In April, the Company forecasted revenues of between $30 million and $33 million and Operating Profit of between $1.0 million and $1.3 million for the fiscal year ending September 30, 2005. At that time, the Company noted that “its actual results could vary significantly from its projected results due to a number of factors, including the length and timing of the capital approval processes of its customers, delays in large systems orders that materially shift earnings between reporting periods, and the cyclical nature of the semiconductor industry. The volatility associated with these factors can be of a magnitude to produce significant fluctuations in operating results even from one quarter to the next.” Due to above-noted delays in the receipt of sales orders, the Company’s latest estimates for fiscal year 2005 are for revenues of $27 million, a 42% increase over 2004 revenues of $19 million and operating income of approximately break-even, compared to the $3.2 million loss in fiscal 2004.
J.S. Whang, the Company’s President and CEO, stated, “I am very pleased that one of the world’s premier manufacturer’s of semiconductors has decided to include our horizontal furnaces in their Asian growth plans. We believe this order is evidence of our success in Asian and further expands our marketing pipeline into this strategically important region. While our fiscal 2005 results will fall short of our previous guidance, the large orders discussed above provide evidence of the success of our growth strategy.”
Amtech Systems, Inc. manufactures capital equipment, including silicon wafer handling automation, thermal semiconductor processing equipment and related consumables used in fabricating semiconductor devices. Semiconductors, or semiconductor chips, are fabricated on silicon wafer substrates, sliced from ingots, and are part of the circuitry, or electronic components, of many products including computers, telecommunications devices, automotive products, consumer goods, industrial automation and control systems. The Company’s semiconductor handling, thermal processing and consumable products currently address the polishing of newly sliced silicon wafers and reclaimed test wafers and the oxidation and deposition steps used in the fabrication of semiconductors, MEMS and solar cells.
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. 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, failure to satisfy customer acceptance requirements, changes in foreign currency exchange rates, which can result in transaction gains or losses and may affect the translation of the results of our foreign operations, difficulties in collecting receivables and the effects of Staff Accounting Bulletin No. 104, “Revenue Recognition in Financial Statements,” issued by the Securities and Exchange Commission.

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