Fremont, CA, July 22, 1998 - Asyst Technologies, Inc. (Nasdaq:ASYT), the leading supplier of manufacturing automation and Standard Mechanical InterFace (SMIF) isolation systems to the global semiconductor industry, today reported results for the first quarter of fiscal 1999 ended June 30, 1998.

For the first three months of fiscal 1999, Asyst reported net sales of $34.1 million compared to net sales of $37.7 million for the first quarter of fiscal 1998, ended June 30, 1997. Net income was $1.6 million, or $0.12 per share, versus $3.3 million, or $0.30 per share, for the comparable period last year. (All per share figures in this document are stated on a diluted basis.) Included in these results is a charge of $1.2 million (pretax) for in-process R&D related to the acquisition of Fluoroware Inc.’s FluoroTrac® automated radio frequency identification (RFID) technology. Absent of such charge, net income would have been $2.3 million, or $0.19 per share.

Asyst’s Chairman and Chief Executive Officer Dr. Mihir Parikh noted, "In the past we have been somewhat less affected by the industry slowdown than many of our peer suppliers due to the nature of our sales cycle. However, as we indicated last month, Asyst’s net sales for the first quarter reflect the economic conditions in Asia and the resulting reduction of capital spending by semiconductor manufacturers. Despite the world-wide softness in business conditions, Asyst maintained profitability for the quarter by executing well in operations and by continuing with the steps previously planned to reduce our expense structure globally."

"During this period of very limited visibility, we are continuing to position the Company for long-term success," commented Terry Moshier, president and chief operating officer. "This includes investing in strategic new technology programs and pursuing complementary products in line with our expertise, customer base and technology. One example of this strategy is our recently announced intention to acquire Hine Design Inc., a leading supplier of wafer-handling robots for semiconductor process tools. The addition of tool robotics to the Asyst product line enables us to become the first supplier to offer semiconductor manufacturers and equipment suppliers a complete, tool front-end solution. During the quarter we also finalized our acquisition of Fluoroware Inc.’s FluoroTrac® RFID technology for automated work-in-progress (WIP) tracking in semiconductor factories. In addition, we are in discussions with key customers in order to evaluate the upgrading of existing fabs, which presents revenue opportunities for Asyst during times when new fab construction is minimal. We are continuing to work with customers to help them fully realize the productivity and cost-of-ownership advantages our products provide. Finally, we continue to focus our efforts on decreasing product costs, providing shorter cycle times and reducing our operating cost infrastructure. Together these steps will further strengthen the Company and enable us to better serve our customers in the long term."

Doug McCutcheon, Asyst’s senior vice president and chief financial officer, added, "To manage the company during this period of slowdown in capital spending, we are building upon the business processes that are so critical to our success. Gross margins for the quarter increased sequentially to 48.3 percent. Days sales in receivables increased slightly to 56 days. Cash, cash equivalents and short term investments of $88 million reflect a $5.2 million increase during the quarter." McCutcheon added, "Although we continue to experience difficult business conditions in the near-term, we remain confident in the long-term prospects of Asyst and believe that we will weather the challenging business conditions ahead and emerge a stronger company."

Except for statements of historical fact, the statements in this press release are forward-looking. Such statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. These factors include, but are not limited to, general economic conditions, semiconductor industry cycles, risks associated with the acceptance of new products and product capabilities, and other factors more fully detailed in the Company’s most recent Forms 10-K annual report and 10-Q quarterly report on file with the SEC.

About Asyst
The pioneer of the Standard Mechanical InterFace (SMIF), Asyst Technologies, Inc. is a leading provider of automated material handling systems critical to seamless factory automation in the most advanced fabs worldwide. Asyst’s comprehensive solutions, which include industry-leading 200 mm and 300 mm product offerings, result in greater fab profitability and productivity. Through major initiatives in the software and systems integration market, Asyst is able to offer chipmakers, foundries and OEMs fully integrated solutions addressing their most advanced manufacturing challenges. Founded in 1984, Asyst Technologies, Inc. is headquartered in Fremont, CA, with facilities in Europe and the Far East.

Condensed Consolidated Statements of Operations
Condensed Consolidated Balance Sheets

			Three Months Ended
			June 30, 1998		June 30, 1997
			(unaudited)		(unaudited)
Net sales			$34,073		$37,686
Cost of sales			17,603		21,314
Gross profit			16,470		16,372
Operating expenses:
	Research and development		3,779		2,744
	Selling, general & administrative		9,579		8,710
	Write-off of acquired in-process research and development costs		1,200		-
Total operating expenses			14,558		11,454
Operating income			1,912		4,918
Other income, net			551		297
Income from continuing operations before income taxes			2,463		5,215
Provision for income taxes			887		1,878
Net income			$1,576		$3,337
Shares Used in the Per Share Calculation:
	Basic earnings per share		12,078		10,662
	Diluted earnings per share		12,634		11,065
	Basic Earnings Per Share:
		Net income per share	$0.13		$0.31
	Diluted Earnings Per Share:
		Net income per share	$0.12		$0.30

				June 30, 1998		March 31, 1998
ASSETS				(unaudited)
Current assets:
Cash and cash equivalents				$6,280		$12,288
Short-term investments				81,735		70,487
Accounts receivable, net				21,232		26,534
Inventories				22,799		18,851
Prepaid expenses and other current assets				12,010		11,938
Net current assets of discontinued operations				-		1,438
Total current assets				144,056		141,536
Property and equipment, net				11,133		11,133
Other assets, net				1,982		1,802
				$157,171		$154,471
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
		Accounts payable		$7,795		$8,671
		Accrued liabilities and other current liabilities		13,318		13,124
		Customer deposits		1,116		1,267
		Net current liabilities of discontinued operations		165		-
		Income taxes payable		2,284		606
			Total current liabilities	24,678		23,668
Shareholders’ equity:
		Common stock		116,461		116,347
		Retained earnings		16,032		14,456
Total shareholders’ equity				132,493		130,803
				$157,171		$154,471

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