Fremont, CA, October 21, 1999 - Asyst Technologies, Inc. (Nasdaq NM: ASYT), the leading provider of minienvironment and manufacturing automation systems that enable semiconductor manufacturers to increase their manufacturing productivity and protect their investment in wafers, today reported results for the second quarter of fiscal 2000 ended September 30, 1999. Net sales for the quarter were $40.7 million, a 115 percent increase over net sales of $18.9 million for the second quarter of fiscal 1999. Compared to the quarter ended June 30, 1999, net sales increased 50 percent. Pro-forma net income for the second quarter was $1.2 million, or $0.09 per share, excluding a merger-related charge. Including the one-time merger-related charge of $4 million (pretax) for purchased in-process R&D incurred in the acquisition of Palo Alto Technologies, Inc., the net loss for the second quarter was $2.8 million, or ($0.22) per share. This compares to a net loss of $14.1 million, or ($1.20) per share, for the comparable period last year.

For the six months ended September 30, 1999, the Company had net sales of $67.8 million, versus net sales of $56.3 million for the first half of fiscal 1999. Net loss for the first six months of fiscal 2000 was $5.6 million, or ($0.45) per share, compared to net loss of $13.2 million, or ($1.11) per share for the same period last year.

Doug McCutcheon, senior vice president and chief financial officer, commented "Asyst's business in the second quarter has performed well in both bookings and revenue. In addition to our 50 percent sequential revenue growth, gross margins rose from 42 percent last quarter to 45 percent for the current quarter. The Company's gross margin performance is attributable to increased demand across all aspects of the business, as well as cost improvements implemented in both the current and earlier quarters." McCutcheon noted that Asyst had made several strategic acquisitions and alliances of late. "We believe that the integration of these new businesses is progressing well, and we have been pleased by their contributions to date."

Asyst Chairman and Chief Executive Officer Mihir Parikh commented, "The quarter was highlighted by increased order momentum, resulting in a book to bill ratio that has exceeded the industry average for the second consecutive quarter, even with our 50 percent sequential revenue increase. This momentum was driven by the following factors: the demand for facility upgrades, the interest of equipment OEMs in out-sourcing the complete front-end tool 'Portal' and the continued penetration of the world's leading foundries, particularly Taiwan. In fact, the recent earthquake in Taiwan does not appear to have caused any disruption of Asyst's ongoing business in the region. Despite the devastation sustained during the recent earthquake, we have been informed that in many instances Asyst's SMIF technology helped to protect the value of our customers' inventory. We are gratified that our technology was a factor in mitigating the losses incurred."

Dr. Parikh continued, "In addition, Asyst is experiencing new growth in key regions such as Japan. Our recent strategic alliance with MECS, a Japanese robotics company, further expands our opportunities in this region. Through this alliance, Asyst believes that it is positioning itself to gain increased acceptance of the Company's products by Japanese IC manufacturers. Moreover, Asyst believes that this alliance should enable the Company to build stronger engineering oriented relationships with the Japanese equipment manufacturers."

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 the leading provider of advanced technologies designed to protect 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 Asyst's value assurance technologies, OEMs are able to speed time to market and reduce development costs, while chipmakers are able to achieve greater fab profitability and productivity.

Condensed Consolidated Statements of Operations
Comparative Balance Sheet Highlights

			Three Months Ended				Six Months Ended
			September 30,				September 30,
			1999 (unaudited)		1998 (unaudited/ restated)		1999 (unaudited)		1998 (unaudited/ restated)
Net sales			$ 40,696		$ 18,900		$ 67,782		$ 56,341
Cost of sales			22,327		15,450		38,167		35,174
Gross profit			18,369		3,450		29,615		21,167
Operating expenses:
	Research and development		4,456		4,459		8,691		8,999
	Selling, general and administrative		12,343		12,297		23,685		22,842
	In-process research and development of acquired     businesses and product line		4,000		5,900		4,000		7,100
	Restructuring expense		---		2,922		---		2,922
		Total operating expenses	20,799		25,578		36,376		41,863
Operating loss			(2,430)		(22,128)		(6,761)		(20,696)
Other income, net			299		1,131		285		1,486
Loss before provision (benefit) for income taxes			(2,131)		(20,997)		(6,476)		(19,210)
Provision (benefit) for income taxes			635		(6,858)		(842)		(5,971)
Net income (loss)			$ (2,766)		$ (14,139)		$ (5,634)		$ (13,239)
Basic and diluted loss per share			$ (0.22)		$ (1.20)		$ (0.45)		$ (1.11)
Share used in per share calculation of     basic and diluted loss per share			12,820		11,746		12,524		11,944

	September 30, 1999 (unaudited)	March 31, 1999 (restated)
ASSETS
Current assets: Cash and cash equivalents Short-term investments Accounts receivable, net Inventories Deferred tax asset Prepaid expenses and other current assets	$ 12,024 18,682 29,614 23,789 19,051 3,836	$   6,382 29,380 14,511 19,373 19,142 3,474
Total current assets	106,996	92,262
Property and equipment, net Other assets, net	13,562 18,526 $ 139,084	12,923 19,103 $ 124,288
Liabilities and Shareholders' equity
Current liabilities: Current portion of long term debt Accounts payable Accrued liabilities and other current liabilities Customer deposits Income taxes payable	$        --- 14,266 10,460 1,042 642	$  2,190 5,055 10,051 1,806 676
Total current liabilities	26,410	19,778
Long-term liabilities: Long-term debt, net of current portion Redeemable convertible preferred stock	--- ---	2,876 5,000
Total long-term liabilities:	---	7,876
Total Liabilities	26,410	27,654
Shareholders' equity: Common stock Accumulated deficit	135,716 (23,042)	111,851 (15,217)
Total shareholders' equity	112,674 $ 139,084	96,634 $ 124,288

[ Top of page ]