Fremont, CA, August 19, 1999 - Asyst Technologies, Inc. (Nasdaq NM: ASYT), a leading supplier of advanced manufacturing solutions for the semiconductor industry, today announced that it has signed an agreement to acquire privately held Palo Alto Technologies, Inc. (PAT) of Mountain View, CA, thus expanding Asyst's role in the semiconductor fab automation market. Under the terms of the agreement, Asyst will acquire all equity in PAT in a security purchase transaction for approximately $4.5 million plus a future earn-out based on transport automation product revenues in excess of certain defined threshold amounts. Asyst expects to complete the acquisition within two weeks. In a related move, the company has hired David Feindel, former vice president and general manager of Daifuku America's Clean Factory Automation Division, to head the new Asyst transport automation systems group.

The acquisition-the latest in a series of strategic acquisitions designed to further enhance Asyst's value assurance technology portfolio and deliver advanced fab automation solutions to chipmakers worldwide-marks Asyst's entry into wafer transport, part of the growing fab automation market. Feindel will join Asyst as vice president of the transport automation systems, reporting to Asyst Senior Vice President of Global Customer Operations Dennis Riccio. Feindel brings to Asyst more than 15 years of experience in the semiconductor industry, and earned an MBA from Harvard University.

Commenting on the company's decision to enter this market, Riccio noted that a market opportunity in excess of $100 million exists for transport automation technologies. These technologies are designed to improve semiconductor equipment utilization and increase productivity while offering a flexible, modular system for InterBay, IntraBay tool loading and InterFacility applications. In addition, PAT positions Asyst to offer comprehensive product suites in all five of the core technology areas needed to deliver complete fab automation solutions to global chipmakers.

"Traditionally, we have addressed the tool-automation market with our robotics, SMIF and minienvironment technologies, all of which are designed to ensure turnkey protection of customer wafer assets throughout the manufacturing process," Riccio said. "With this acquisition, and the guidance of a seasoned executive like David, we are now positioned to bring the same levels of innovation to fab-wide automated transport and to serve customers with systems that deliver secure, high capacity, predictable wafer transport."

Industry experts believe that automated material transport will be essential for the 300 mm fabs of the future. However, many chipmakers indicate that even today's 200 mm fabs require faster, more flexible systems that will enable predictable delivery and optimized equipment utilization and material flow-while eliminating bottlenecks in the fab. All of these capabilities are pivotal to achieving the increased productivity and lower cost of ownership chipmakers need to optimize fab profitability.

PAT-a startup dedicated to the development of advanced transport technology-has designed and applied for patents on unique transport technology specifically designed to resolve these challenges. "Asyst intends to commercialize this innovative fab transport technology, select beta site customers and plan for formal market entry," Riccio added.

As part of the acquisition, PAT's current employees will become Asyst employees and PAT will become a wholly-owned subsidiary of Asyst. Michael Brain, vice president and general manager of PAT, will join Asyst in the newly created position of vice president of software and systems solutions, also reporting to Riccio. In this role, Brain will guide Asyst's software, communications and system integration development initiatives across all Asyst product lines. "Our goal is to deliver value assurance to customers in the form of complete system solutions," Riccio said. "Mike's expertise in managing the development of the PAT technology, which relies on a well-integrated systems approach, will help Asyst meet this critical objective."

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 and 10-Q and annual report to shareholders.

About Asyst:
Asyst Technologies, Inc. is a leading provider of advanced technologies designed to protect and enhance customers' valued assets throughout all phases of the manufacturing process. The company's comprehensive solutions set includes 200 and 300 mm product families that deliver state-of-the-art isolation, material management, robotics and software needed to ensure seamless factory automation in the most advanced fabs worldwide. Leveraging its value assurance technologies, Asyst offers OEMs the ability to speed time to market and reduce development costs, and chipmakers the ability to achieve greater fab profitability and productivity.