MATTSON TECHNOLOGY, INC. ANNOUNCES RECORD FOURTH QUARTER AND YEAR END 2000 FINANCIAL RESULTS

DISCUSSES THE EFFECT OF ADOPTION OF SAB 101..

FREMONT, Calif., January 31, 2001 -- Mattson Technology, Inc. (Nasdaq: MTSN), a leading supplier of advanced process equipment used to manufacture semiconductors, today is reporting record financial results for the quarter and year ended December 31, 2000, and its transition from the Company's historical accounting method to the method required by the Securities and Exchange Commission Staff Accounting Bulletin No. 101 (SAB 101).

Before the effects of SAB 101, now called pro-forma, revenue and shipments for the fourth quarter 2000 were $62.3 million, a revenue increase of 74 percent over fourth quarter of 1999 reported revenue of $35.8 million. Pro-forma fourth quarter of 2000 net income was $8.3 million or 40 cents per diluted share, an increase of 471 percent and 400 percent, respectively, when compared to the fourth quarter of 1999 reported net income of $1.5 million or 8 cents per diluted share. Fourth quarter of 2000 bookings were $67.3 million, an increase of 33 percent from the fourth quarter of 1999, and backlog increased 96 percent to $109.9 million, compared to $56.1 million at the end of the fourth quarter of 1999.

Quarter-to-quarter pro-forma net sales increased 7 percent, up from $58.2 million in the third quarter of 2000. Pro-forma net income for the fourth quarter represents a 2% decrease from the third quarter's net income of $8.5 million, or 39 cents per diluted share. Bookings decreased 12 percent, down from $76.6 million in the third quarter of 2000, resulting in a book-to-bill ratio of 1.08 to 1.0. Backlog increased 4.8 percent to $109.9 million, up from $104.9 million at the end of the third quarter of 2000.

Pro-forma revenue for the full year 2000 was a record $213.2 million, an increase of 106 percent from 1999 reported net sales of $103.5 million. Pro-forma net income for the year was a record $27.4 million or $1.30 per diluted share, compared to reported net loss in 1999 of $0.8 million or 5 cents per diluted share. Please see exhibit C for the detailed Pro-forma Income Statement under the historical accounting method.

Reporting the same periods according to SAB 101:

Shipments for the fourth quarter 2000 were $62.3 million. Net sales for the fourth quarter 2000 were $47.9 million, and net income was $1.1 million, or 5 cents per diluted share.

Shipments for the year were $213.2 million. Net sales for the year were a record $180.6 million, and net income for the year was $9.6 million, or 45 cents per diluted share before an $8.1 million (38 cents per share) cumulative effect of the SAB 101 change in accounting principle. This change in accounting principle results in a cumulative deferred revenue of $40.7 million at year-end 2000. This $40.7 million represents the difference between what the company has shipped to date versus the recognizable revenue under the new SAB 101 guidelines.

SAB 101 did not require restatement of 1999 results, thus fiscal 2000 results under SAB 101 are not comparable to previously reported results for fiscal 1999.

Brad Mattson, CEO of Mattson Technology, stated, "We are ending the quarter and the year with more than just record earnings, we have also completed a three-way merger that dramatically increases our size and
prominence with customers, increased our backlog to record levels and signed a number of significant sales agreements. I am proud of the level of performance throughout the Mattson team, and congratulate
them all." He continued, "Even though we managed to double our revenues in 2000 compared to the year before and post a 74% better quarter than the year before, the early signs of the industry-wide slowdown are starting to appear. Bookings are slowing quarter-to-quarter, with customers pushing out delivery dates. Our book-to-bill ratio is also slowly declining from 1.3 in Q3, 2000 to 1.08 in Q4." Mattson added. "But we believe absolutely in Mattson Technology's long term ability to prosper and grow through the combined product, technological and market strengths of our merger with STEAG and CFM."

At 2:00 PM (Pacific Standard Time) today, Mattson will hold a call to review the following topics: fourth quarter and 2000 financial results and the impact of adoption of SAB 101 on the financial results, current business conditions, completion of the acquisition of Steag semiconductor equipment division and CFM Technologies, and the near term outlook for business. None of the results reported with this press release relate to the Steag or CFM Technologies acquisitions, which closed on January 1, 2001. The conference call will be publicly available via the Internet beginning with a live webcast at 2:00 PM, Pacific Standard Time (www.mattson.com). In addition to the live webcast, replays will be available to the public on the Mattson website. Users can access the replay one hour after the call.

This Press Release contains forward looking statements regarding, among other matters, the Company's future prospects. Forward looking statements address matters that are subject to a number of risks and
uncertainties. In addition to the general risks associated with the development of complex technology, future results of the Company will depend on a variety of factors, including the timing of significant orders, the ability of the Company to timely manufacture and deliver ordered products, the ability of the Company to bring new systems to market, the timing of new product releases by the Company's competitors, slowdowns in the semiconductor industry, other competitive factors, risks of integration following the Steag-CFM acquisitions. Reference is made to the Company's filings with the Securities and Exchange Commission for further discussion of risks and uncertainties regarding the Company's business.


Note:
The accompanying exhibits present our operating results under both SAB 101 and according to the historical method (recognizing revenue on shipment), to facilitate ease of comparison of the operating results.

See exhibit A for the income statement under SAB 101.
See exhibit B for the balance sheet under SAB 101.
See exhibit C for Pro-forma income statement under the historical
shipments method. See exhibit D for an explanation of revenue
recognition under SAB 101.

Exhibit A: Fourth Quarter and annual 2000 results under SAB 101

.

Exhibit B: Consolidated Balance Sheets under SAB 101




Exhibit C: Fourth Quarter and annual Pro-Forma results under the
"historical shipments method"




Exhibit D: Explanation of Revenue Recognition under SAB 101

Summary

SAB 101, Revenue Recognition in Financial Statements: On December 3, 1999, the Staff of the Securities and Exchange Commission (SEC) issued Staff Accounting Bulletin ("SAB") No. 101, "Revenue Recognition in Financial Statements." The SEC Staff address several issues in SAB No. 101, including the timing of revenue recognition for sales that involve contractual customer acceptance provisions and installation of the product if these events occur after shipment and transfer of title. The Company's previous revenue recognition policy was to recognize revenue at the time the customer takes title to the product, generally at the time of shipment. In October 2000, the SEC issued Staff Accounting Bulleting No. 101: Revenue Recognition in Financial Statements - Frequently Asked Questions and Answers ("SAB 101 FAQ"). The SAB 101 FAQ was issued to clarify many of the implementation questions surrounding SAB No. 101.

Explanation of Revenue Recognition under SAB 101:

Mattson derives revenues from two primary sources - equipment sales and spare part sales. SAB 101 has no effect on the Company's revenue recognition policy for spare parts. There are different revenue recognition points under SAB 101, which are described as follows:

Acceptance: For sales of existing products with new specifications or acceptance clauses to a new customer, and for all sales of new products, revenue is recognized upon customer acceptance.

Shipment and acceptance: For equipment sales to existing customers, who have purchased the same equipment with the same customer-specified acceptance provisions in the past, the lesser of the fair value of the equipment or the contractual amount billable upon shipment is recorded as revenue upon title transfer. The remainder is recorded as deferred revenue and recognized as revenue upon customer acceptance.

Revenue related to spare part sales is recognized on shipment.

Cumulative Effect of Change in Accounting Principle:

As a result of the change in accounting to SAB 101, Mattson has reported a change in accounting principle in accordance with APB Opinion No. 20, Accounting Changes, by a cumulative effect adjustment.
Because Mattson is a calendar year company who is adopting SAB 101 in the fourth quarter, no cumulative effect of the change is included in net income of the fourth quarter. Instead, APB 20 requires that the
change be made as of the beginning of the year (January 1, 2000) and that financial information for prechange interim periods, in this case the first three quarters of 2000, be restated by applying SAB 101 to those periods.

About Mattson Technology, Inc.

Mattson Technology, Inc. is a leading supplier of semiconductor wafer processing equipment used in "front-end" fabrication of integrated circuits. The company is a market leader in dry strip and RTP equipment, and its products combine advanced process technology on high-productivity platforms backed by industry-leading support. Since beginning operations in 1989, the company’s core vision has been to help bring technology leadership and productivity gains to semiconductor manufacturers worldwide. Headquartered in Fremont, Calif., the company maintains sales and support centers throughout the United States, Europe and Asia. For more information, please contact Mattson Technology, Inc., 47131 Bayside Parkway, Fremont, Calif. 94538. Telephone: (800) MATTSON/(510) 657-5900. Fax: (510) 492-5911. Internet: www.mattson.com.