MATTSON TECHNOLOGY, INC. ANNOUNCES FOURTH QUARTER AND YEAR END 2001 FINANCIAL RESULTS

FREMONT, Calif. - February 28, 2002 - Mattson Technology (NASDAQ: MTSN), a leading supplier of advanced process equipment used to manufacture semiconductors, today is reporting financial results for the fourth quarter and year ended December 31, 2001.

Net sales for the quarter were $48.7 million, an increase of 32.8 percent from $36.6 million in the third quarter of 2001, and an increase of 1.6 percent from the fourth quarter of 2000 net sales of $47.9 million. Shipments for the quarter were $49.5 million, a decrease of 26.5 percent from $67.3 million in the third quarter of 2001, and a decrease of 20.5 percent from the fourth quarter of 2000 shipments of $62.3 million. The results for 2001 reflect the acquisition of the business of the STEAG Semiconductor Division (“STEAG”) and CFM Technologies Inc. (“CFM”), while results for 2000 reflect the operations of Mattson, pre-merger.

Net loss for the fourth quarter of 2001 was $67.1 million or $(1.81) per share compared to net income of $1.1 million or $0.05 per fully diluted share for the fourth quarter of 2000. Net loss for the fourth quarter of 2001 includes unusual charges aggregating $36.1 million, including impairment charges of $23.0 million, inventory valuation charges of $5.1 million, effects of APB 16 inventory charges of $3.8 million, and restructuring charges of $4.2 million

Net sales for the year were $230.1 million, an increase of 27.4 percent from fiscal year 2000 net sales of $180.6 million. Shipments for the year were $325.8 million, compared with shipments of $213.2 million in 2000

Net loss for the year was $336.7 million or $(9.14) per share, compared to fiscal year 2000 net income of $1.5 million or $0.07 per fully diluted share. Net loss for the year 2001 includes unusual charges aggregating $209.1 million, comprised of the following: impairment charges of $150.7 million, inventory valuation charges of $26.4 million,effects of APB 16 inventory charges of $13.8 million, restructuring charges of $8.1 million, and in-process R&D write-offs of $10.1 million. Goodwill and intangible amortization for the year 2001 amounted to $33.5 million

Gross margin for the fourth quarter of 2001 was a negative 26.5 percent, an increase from a negative gross margin of 54.7 percent for the third quarter of 2001 and a decrease from 49.6 percent gross margin for the fourth quarter of 2000. The gross margin includes the effects of inventory valuation charges of $5.1 million and $21.3 million in the fourth and third quarters of 2001, respectively. Gross margin has also been adversely affected by high fixed production costs relative to production and shipment volumes that reflect deteriorated market conditions in the semiconductor industry in general.

Deferred revenue at the end of the fourth quarter of 2001 was $136.6 million, a slight decrease from $136.9 million at the end of the third quarter of 2001. Bookings for the fourth quarter of 2001 were $19.7 million, a decrease of 21.2 percent from $25.0 million in the third quarter of 2001, and a decrease of 70.7 percent from $67.3 million in the fourth quarter of 2000, resulting in a book-to-bill ratio of 0.4 to 1.0. During the fourth quarter of 2001 backlog was reduced by $23.7 million due to customer cancellations and orders that were pushed out by customers who do not currently need the equipment they ordered. Backlog at end of the fourth quarter of 2001 was $60.0 million, a decrease of 45.4 percent from the $109.9 million at the end of the fourth quarter of 2000.

The company ended the year with cash and cash equivalents, restricted cash and investments of $97.1 million, a decrease of $3.1 million from $100.2 million as of the quarter ended September 30, 2001.Working capital decreased to $74.0 million as of December 31, 2001 from $120.3 million as of September 30, 2001.

David Dutton, president and chief executive officer said, “2001 proved to be a very difficult year, with the financial effects related to the integration of our acquisitions coming at the same time as a sudden and drastic downturn in the industry.However, I believe that our most difficult challenges are behind us. We have resized the company and are now better aligned with current business conditions. Our new two divisional model brings us much closer to our customers, enabling us to react more quickly to customer demand.”

He continued, “While we remain focused on controlling costs and enhancing operating efficiency, we continue to invest in the future, working closely with our customers to develop leading-edge technologies and processes. Our leadership in 300mm tools strategically positions us to attract new and additional business, thereby gaining market share when the industry recovers and transitions to these new technologies.”

Attached to this release are condensed consolidated statements of operations and balance sheets.

At 2:00 PM (Pacific Time) today, Thursday, February 28th, Mattson will hold a conference call to review the following topics: fourth quarter and 2001 financial results, current business conditions, and the near-term business outlook. The conference call will be publicly available via the Internet www.mattson.com, under “Investor Line”), beginning with a live webcast at 2:00pm Pacific Time, February 28, 2002. In addition to the live webcast, replays will be available to the public on the Mattson website for one week following the live broadcast. 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, our enhanced operating efficiency increases in market share in the 300mm tools market, and changes in 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 materially. In addition to the general risks associated with the slowdown in the semiconductor industry and development of complex technology, our future results will depend on a variety of factors, including the timing of significant orders, our ability to timely manufacture and deliver ordered products, our ability to bring new systems to market, the timing of new product releases by our 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. The Company assumes no obligation to update the information in this press release.

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.