MATTSON TECHNOLOGY ANNOUNCES UPDATE TO SECOND QUARTER 2001 EXPECTATIONS

FREMONT, Calif. - July 24, 2001 - Mattson Technology (NASDAQ: MTSN), a leading supplier of advanced process equipment used to manufacture semiconductors, today announced that it expects its financial results for the second quarter, ending July 1, 2001, to be below the guidance it provided during its first quarter earnings conference call.

"We have not been immune to the well publicized slow down that has adversely impacted semiconductor manufacturing equipment suppliers," said Brad Mattson, chief executive officer of Mattson Technology. "A number of our customers have delayed delivery of existing orders, and some have canceled orders as a reaction to the reduced demand for semiconductor products that they are now experiencing. These delays and cancellations have caused our revenues to drop below our original expectations, negatively affecting our gross margins and earnings."

The company expects its second quarter revenue to be between $90 and $100 million, before the effects of SAB 101. Gross margin will be adversely impacted as a result of lower volume. Earnings will be substantially lower than expected due to the lower gross margins, some additional integration charges and costs associated with a reduction in workforce during the second quarter. The company is investigating consolidation of production facilities and additional cost cutting measures in an effort to mitigate future losses.

The company noted that the rate of new orders for the second quarter is likely to be in line with industry averages. "We will continue to assess the impact of these industry factors on our business and update our outlook with investors on our August 14, 2001 earnings conference call," concluded Mattson.

Mattson Technology will release its financial results for the second quarter on August 14, 2001, after the close of the U.S. stock market.

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 slowdowns in the semiconductor industry, 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, other competitive factors, and 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.

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.