Fremont, CA, October 21, 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 second quarter of fiscal 1999 ended September 30, 1998.

Net sales for the second quarter of fiscal 1999 were $16.0 million, compared to net sales of $40.3 million for the second quarter of fiscal 1998. Net loss for the second quarter was $13.2 million, or ($1.13) per share, compared to net income of $4.3 million, or $0.37 per share, for the comparable period last year. For the six months ended September 30, 1998, the Company had net sales of $50.0 million, versus net sales of $78.0 million for the first half of fiscal 1998. Net loss for the first six months of fiscal 1999 was $11.6 million, or ($0.98) per share, compared to net income of $7.7 million, or $0.67 per share, for the same period last year. (All per share figures in this document are stated on a diluted basis.)

Included in these results is a one-time charge of $5.9 million (pretax) for in-processR&D related to the acquisition of Hine Design Incorporated, as well as a one-time restructuring charge in the amount of $2.9 million in connection with the closure of certain facilities and severance costs. Absent such charges, net loss for the second quarter would have been $7.4 million, or ($0.63) per share.

Asyst's Chairman and Chief Executive Officer Dr. Mihir Parikh commented, "As we stated last month, our revenues and earnings have been significantly impacted by the prolonged global industry slowdown, in which semiconductor manufacturers' capital budgets have been markedly reduced. During these challenging market conditions, we continue to focus on the key technologies and programs that the Company believes positions it for long-term growth."

Parikh continued, "Most notably, we are targeting several synergistic new markets while we continue to leverage our leading position in SMIF. The completion of the acquisition of Hine Design provides Asyst the ability to offer our customers a complete tool front-end solution. In addition, we are focusing our sales and marketing efforts on the market for facility upgrades, which offers revenue potential from those chipmakers who seek to enhance their manufacturing capabilities with the most efficient level of investment. Moreover, several installations globally have adopted our new fab automation software, SMART-Station™. Customers have realized increased efficiency in equipment effectiveness and a significant reduction in misprocessed wafers. Upon the return of more favorable market conditions, the Company believes that it will benefit from increased adoption of this software, as well as Asyst's broad set of manufacturing productivity solutions."

Commenting on the Company's actions in response to the severity of the industry downturn, Terry Moshier, president and chief operating officer, noted, "In order to lower our cost structure going forward, we have further implemented cost reduction measures over the last quarter. Specifically, we have reduced headcount by approximately 23 percent, eliminated many discretionary spending programs and instituted a salary freeze for senior management. In addition, we are consolidating several facilities and integrating our Asyst Software subsidiary into Asyst Technologies, which will allow us to more effectively integrate our automation and software solutions to meet our customers' requirements."

"We are on track with the implementation of measures designed to improve operational efficiencies while we continue to make investments designed to better position Asyst for long-term growth," added Doug McCutcheon, senior vice president and chief financial officer. "Despite the significant loss in the period, we sustained a negative cash flow from operations of approximately $4 million. The remaining reduction in our cash position this quarter is attributable to the Hine acquisition ($25 million) and the repurchase of approximately $11 million of Company stock. We remain confident in the strategies we are executing and are committed to making every effort to return Asyst to profitability and positive cash flow in the near-term."

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 the leading provider of automated material handling systems, software and integration services critical to seamless fab automation worldwide. Hine Design Incorporated, a wholly owned subsidiary, designs and manufactures precision substrate handling equipment for vacuum, atmospheric and corrosive environments.

Condensed Consolidated Statements of Operations
Condensed Consolidated Balance Sheets

	Three months ended		Six months ended
	September 30, 1998	September 30, 1997	September 30, 1998	September 30, 1997
Net sales Cost of sales	$ 15,963 13,086	$ 40,312 22,588	$ 50,036 30,689	$ 77,998 43,902
Gross profit	2,877	17,724	19,347	34,096
Operating expenses:
Research and development Selling, general, and administrative Purchased in-process research and development Restructuring expence	3,613 11,402 5,900 2,922	3,294 8,344 ---- ----	7,392 20,981 7,100 2,922	6,038 17,054 ---- ----
Total operating expenses	23,837	11,638	38,395	23,092
Operating income(loss) Other income, net	(20,960) 935	6,086 698	(19,048) 1,486	11,004 995
Income (loss) before provision (benefit) for income taxes	(20,025)	6,784	(17,562)	11,999
Provision (benefit) for income taxes	(6,858)	2,442	(5,971)	4,320
Net income (loss)	$ (13,167)	$ 4,342	$ (11,591)	$ 7,679
Basic earnings (loss) per share	$ (1.13)	$ 0.40	$ (0.98)	$ 0.72
Diluted earnings (loss) per share	$ (1.13)	$ 0.37	$ (0.98)	$ 0.67
Shares used in per share calculation of:
Basic earnings (loss) per share	11,656	10,801	11,867	10,732
Diluted earnings (loss) per share	11,656	11,728	11,867	11,397

	September 30, 1998 (unaudited)	March 31, 1998
ASSETS
Current assets: Cash and cash equivalents Short-term investment Accounts receivable, net Inventories Prepaid expenses and other current assets Net current assets of discontinued operations	$   8,129 39,861 12,737 22,486 17,373 360	$ 12,288 70,487 26,534 18,851 11,938 1,438
Total current assets	100,946	141,536
Property and equipment, net Other assets, net	12,237 20,131 $ 133,314	11,133 1,802 $ 154,471
Liabilities and Shareholders' equity
Current liabilities: Accounts payable Accrued liabilities and other current liabilities Customer deposits Income taxes payable            Total current liabilities	$ 5,046 15,332 1,046 1,280 22,704	$ 8,671 13,124 1,267 606 23,668
Shareholders' equity: Common stock Retained earnings	107,745 2,865	116,347 14,456
Total shareholders' equity	110,610 $ 133,314	130,803 $ 154,471

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