ASYS

Tempe, AZ – August 14, 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, today reported results for its third fiscal quarter ended June 30, 2006.

Revenues for the third quarter of fiscal 2006 totaled $10.4 million, an increase of 88% from $5.5 million in the third quarter of fiscal 2005. The increase in third quarter revenues was due to a 142% increase in revenues in the semiconductor equipment segment driven by higher diffusion furnace sales.

At June 30, 2006, our order backlog was $13.5 million (including $3.2 million to the solar market) compared to $6.3 million a year ago. Backlog includes deferred revenue and customer orders that are expected to ship within the next 12 months.

Net income during the second fiscal quarter of 2006 was $0.2 million, or $0.05 per diluted share, compared to $0.1 million, or $0.04 per diluted share, for the second quarter of 2005. The increase in net income was driven by higher diffusion furnace sales within the semiconductor equipment segment. Included in the quarter ended June 30, 2006, are $0.1 million of restructuring charges related to the consolidation of our automation business from Tempe, Arizona to our manufacturing operation in Billerica, Massachusetts. The restructuring is expected to generate annual savings on a pretax basis of approximately $0.3 million.

Revenues for the nine months ended June 30, 2006, were $29.2 million, an increase of 35% compared to $21.6 million in the same period last year. Net income for the first nine months of fiscal 2006 was $0.8 million, or $0.24 per diluted share, compared to $0.7 million, or $0.24 per diluted share, for the same period of fiscal 2005.

Mr. J.S. Whang, President and Chief Executive Officer, stated, “We are very pleased and encouraged by the strong third quarter revenue growth fueled by our semiconductor equipment segment. In fact, our revenues for the first nine months of fiscal 2006 exceeded our revenues for the entire 2005 fiscal year. We continue to enhance our marketing strategies and the efficiency of manufacturing operations which should improve our gross margins and overall profitability, as evidenced by the restructuring of our automation business.”

As previously announced, the company was awarded approximately $3 million in new orders from the solar industry. These orders are further evidence of Amtech’s commitment to serving the rapidly expanding solar market and the market’s acceptance of Amtech’s products.

Amtech Systems, Inc. manufactures capital equipment and related consumables used in the manufacture of various thin-wafer materials, primarily silicon wafers for the semiconductor industry, and certain thermal processes and related automation used in fabricating semiconductor devices, MEMS and the photovoltaic or solar cells. These products include horizontal diffusion furnaces, and related automation and polishing carriers, templates and machines.

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 June 30, 2006.

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