MATTSON TECHNOLOGY EXTENDS RTP PRODUCT LINE INTO THERMAL OXIDATION GROWTH SEGMENT WITH INTRODUCTION OF NEW 300 MM SINGLE-WAFER SYSTEM

Atmos Uniquely Addresses Advanced Selective Oxidation Application Requirements

FREMONT, Calif. - October 3, 2006 - Mattson Technology, Inc. (NASDAQ: MTSN), a leading supplier of advanced process equipment used to manufacture semiconductors, extends its leading rapid thermal processing (RTP) technology into the growing rapid thermal oxidation (RTO) market with the latest addition to its family of advanced RTP solutions: Atmos. Built upon the production-proven Helios platform, Atmos is a dual-chamber, single-wafer 300 millimeter (mm) RTP system for high-volume chip manufacturing through the 32 nanometer (nm) technology node. Designed to address the industry’s transition to single-wafer processing for applications currently predominantly run on furnaces, Atmos enables a broad range of RTO applications, including selective oxidation and shallow-trench isolation.

Thermal budget requirements have become significantly more stringent for advanced oxidation applications. The thermal oxidation market has been dominated by mini-batch furnaces; however, conventional furnace techniques are increasingly less capable of delivering these advanced process capabilities due to uniformity, repeatability and temperature control limitations. RTP has become important in oxidation applications for its capability to use short process times at high temperatures and a wide range of process gases to provide excellent quality films and superior process control.

“At the 70 nanometer node, we are seeing a crossover point where chipmakers are transitioning from mini-batch processing approaches to single-wafer RTP as a result of the latter’s cost-of-ownership benefits,” said Andreas B. Toennis, vice president and general manager of the Thermal Products Group for Mattson Technology. “Our new single-wafer, dual-chamber RTP solution is designed to address this transition, delivering thermal performance, cost-per-wafer pass and yield benefits comparable or superior to conventional batch furnaces. Atmos offers significantly improved oxidation capabilities compared to dry oxidation and in-situ steam generation. As a result of the excellent processing performance and productivity the tool delivers to our customers, we expect Atmos to enable Mattson to capture more share in the growing thermal oxidation market.”

Atmos’ state-of-the-art model-based temperature measurement and control system allows precise control across the wafer and repeatable results from wafer-to-wafer, enabling customers to fabricate thin, uniform oxides. Featuring an integrated pyrogenic water-vapor generator, Atmos enables a broad range of concentrations of reactive species at lower thermal budgets, resulting in higher processing flexibility for shallow-trench isolation (STI) liner processes. The system also features a dedicated edge grip and edge support end-effector for superior backside particle performance and on-the-fly wafer alignment for higher throughput. The system’s modular, dual-chamber platform is designed for ease of use and maintenance and high reliability, critical factors in 300 mm volume production environments.

Mattson has already received multiple orders for the new system and recently shipped the Atmos to a leading integrated device manufacturer for qualification at the 70 nm node and below.

Mattson is the second largest rapid thermal processing supplier in the industry, with the number two market share position in 2005, according to a report published by Gartner Dataquest, an independent market research firm. The RTP market size for 2006 is estimated to be $535 million. The thermal oxidation market segment is forecasted to be $112.4 million in 2006, with a compoud annual growth rate of 25.9% from 2005 to 2011. The addition of Atmos to Mattson Technology's line of thermal product offerings is expected to extend Mattson’s position in the RTP market.

About Mattson Technology, Inc.

Mattson Technology, Inc. is the leading supplier of dry strip equipment and the second largest supplier of rapid thermal processing equipment in the global semiconductor industry. The company's strip and RTP equipment utilize innovative technology to deliver advanced processing performance and productivity gains to semiconductor manufacturers worldwide for the fabrication of current- and next-generation devices. 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.