MATTSON TECHNOLOGY, INC. ANNOUNCES SECOND QUARTER FINANCIAL RESULTS

FREMONT, Calif., August 14, 2001-- Mattson Technology, Inc. (Nasdaq: MTSN), a leading supplier of advanced process equipment used to manufacture semiconductors, today announced financial results for the second quarter of 2001.

Net sales for the second quarter of 2001, before the effects of SAB 101, were $96.9 million including net sales of STEAG Semiconductor Division ("STEAG") and CFM Technologies. Inc. ("CFM"), which were acquired on January 1, 2001. This compares to net sales of $50.1 million for the second quarter of 2000, an increase of 94 percent, and a decrease of 21 percent from $122.6 million for the first quarter of 2001. Net sales, including the effects of SAB 101 for the second quarter of 2001 were $82.0 million, compared to $44.5 million for the second quarter of 2000, an increase of 84 percent, and an increase of 12 percent from $73.5 million for the first quarter of 2001.

The Company recorded a net loss for the second quarter of 2001 of $27.1 million or $0.74 per share, excluding the effects of SAB 101, APB 16 and goodwill amortization. Including these effects, the Company recorded a net loss for the second quarter of 2001 of $33.1 million or $0.90 per diluted share, compared to net income of $2.9 million or $0.13 per diluted share, for the second quarter of 2000, and a net loss of $49.6 million or $1.36 per diluted share, for the first quarter of 2001. Deferred revenue at the end of the second quarter was $107.8 million.

Bookings for the second quarter of 2001 were $45.8 million as compared to $65.7 million for the second quarter of 2000, a decrease of 30 percent. Bookings in the second quarter of 2000 do not include STEAG or CFM. Bookings decreased 54 percent to $45.8 million, from $98.5 million in the first quarter of 2001, resulting in a book-to-bill ratio of 0.5 to 1.0. Backlog decreased 60 percent to $34.5 million, compared to $86.5 million in the second quarter of 2000.

Gross margin for the second quarter of 2001, before the effects of SAB 101, APB 16 and goodwill amortization, was 18.7 percent. After the effects of SAB 101, APB 16 and goodwill amortization, gross margin was 26.2 percent as compared to 31.5 percent for the first quarter of 2001. Gross margin decreased primarily due to the drop in production volume as a result of the reduced bookings and sales, before the effects of SAB 101, in the second quarter of 2001.

Cash and cash equivalents, restricted cash and short term investments decreased to $85 million at July 1, 2001 from $106 million at April 1, 2001. Working capital decreased to $174 million at July 1, 2001 from $183 million at April 1, 2001. As part of its efforts to strengthen its financial position, the Company is currently renegotiating the terms of its note payable of approximately $45 million to STEAG SES AG, a stockholder, which was payable on July 2, 2001.

A summary of the Company's unaudited statement of operations for the quarter ended July 1, 2001, showing the effects of acquired in-process R&D write-offs, APB 16 and SAB 101 to our financials, is as follows:

Brad Mattson, Chief Executive Officer of Mattson Technology, stated, "We, similar to other semiconductor equipment suppliers, have experienced a significant decline, not only in shipments but also in bookings, during the second quarter of 2001, as a result of the economic downturn experienced by our customers. This contraction has hit us especially hard since we recently acquired substantial production facilities as part of our merger with CFM and STEAG. Our restructuring efforts initiated in Q2 will require a couple of quarters to complete. We have already taken several actions so far in Q2 and into Q3 to reduce expenses and improve efficiency, including consolidating facilities, reducing materials costs, reducing executive pay, implementing shortened workweeks and reducing headcount. We implemented a reduction in force in May, releasing approximately 180 employees. This was in addition to previous reductions in contract and temporary employees".

"We are continuing our restructuring and cost reduction program with plans to further reduce our SG&A and fixed costs of goods. As part of our consolidation plan, we are in the process of selling two buildings - one in Austin, Texas and the other in West Chester, Pennsylvania. We also have plans to reduce our space in the Fremont/San Jose area by more than 60,000 sq. ft. in the near future. We continue to review our headcount and plan to make further adjustments to align headcount with current revenue levels. Finally, we are reviewing our product lines and outsourcing some low volume product lines to improve manufacturing efficiencies. The company expects to record restructuring charges in the third quarter as a result of these actions".

Mattson continued, "Although our visibility into the market is very limited at this time, we anticipate that revenue for the third quarter to be down 10-20% from the second quarter, on a shipment basis, and bookings are forecasted to be flat at $45-50 million."

Attached to this release are unaudited condensed consolidated statements of operations and balance sheets. The balance sheet continues to reflect a preliminary allocation of the purchase price of STEAG and CFM and there may be changes in the allocation of the purchase price based on the ultimate realization of the assets and liabilities acquired in the acquisition of STEAG and CFM that became effective January 1, 2001.

At 3:00 PM (Pacific Time) Tuesday, August 14th, 2001 Mattson will hold a call to review the following topics: second quarter of 2001 financial results, current business conditions, and the near-term business outlook. The conference call will be publicly available via the Internet beginning with a live webcast at 3:00 PM, Pacific Time (www.mattson.com), August 14, 2001, under "Investor Line". 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 and near-term outlook, the effects of our restructuring and cost reduction programs, allocation of the purchase price of STEAG and CFM, and customer demand and the effect of the economic downturn. Forward looking statements address matters that are subject to a number of risks and uncertainties that can cause actual results to differ significantly. 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.

(1) Does not include the results of STEAG and CFM acquired in a purchase transaction on January 1, 2001. Results shown above for the three and six months ended June 25, 2000 have been restated to reflect the adoption of SAB 101.

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.