MATTSON TECHNOLOGY ENTERS PHASE TWO OF COST REDUCTION PROGRAM

Program Additions Help Exceed Cost Cutting Expectations by 10 Percent

FREMONT, Calif. - August 24, 2001 - Mattson Technology (NASDAQ: MTSN), a leading supplier of advanced process equipment used in the manufacture of semiconductors, today announced the results to date of the cost-cutting program that went into effect in May, as well as an extension of the program. The semiconductor industry slowdown led Mattson to establish a global cost reduction program, which the company expects will achieve 30 percent overall expense reductions for fiscal 2001, 10 percent more than previously estimated.

The company is beginning to realize significant savings in the areas of utilities, materials, facilities and operating costs, with headcount reduction being a major contributor in the cost cutting efforts. In order to meet the 30 percent reduction target, the company implemented a second reduction in force effective August 22, affecting approximately 20 percent of the company's current US employees. The full reduction, which will be completed by the end of 2001, will affect approximately 25 percent of Mattson's employees on a global basis. In addition to the reduction in work force, executive pay cuts and other cost reduction measures will continue through the end of this year. Three additional weeks of plant shutdown are scheduled for Q3 and Q4.

"In addition to the streamlining of our operations related to the merger, we are taking specific action to size the company to the essentially flat business forecast for the next several quarters. We believe that this restructuring, combined with the development of our integrated product lines, will position us for profitable growth as we enter the next business cycle," said Mattson Technology CEO Brad Mattson.

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, 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 and 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.