FREMONT, Calif., January 31, 2007 — Mattson Technology, Inc. (Nasdaq: MTSN), a leading supplier of advanced process equipment used to manufacture semiconductors, today announced results for the fourth quarter ended December 31, 2006.

Highlights of this report include:

• Achieved record revenue of $83.6 million
• Generated record cash while ramp ing production
• Won two new customers for our leading-edge strip products

Net sales for the quarter were $83.6 million, up 9.3 percent from $76.5 million for the previous quarter, and up 65.9 percent from $50.4 million in the fourth quarter of 2005. Net sales for the fourth quarters of 2006 and 2005 included royalties of $1.0 million and $1.4 million, respectively, related to the settlement of the patent infringement suit with Dainippon Screen Manufacturing Co., Ltd. (“DNS”). Net income for the current quarter was $3.7 million, or $0.07 per diluted share, down from $4.6 million, or $0.09 per share, for the previous quarter, and down from $4.8 million, or $0.09 per share, for the fourth quarter of 2005.

Included in the fourth quarter results is a non-recurring impairment charge for intangible assets of $2.6 million, or $0.05 per diluted share, related to a portion of the intangible assets acquired from Vortek Technology Ltd. in 2004. Additionally, in 2006, the Company began utilizing net operating losses that it acquired in the acquisition of STEAG in 2001. In accordance with the requirements of SFAS No. 109, Accounting for Income Taxes , the Company is required to reduce goodwill for the benefit of these operating losses, rather than benefiting income tax expense. This impacted income tax expense by $1.5 million, or $0.03 per diluted share, in the fourth quarter of 2006. The combined impact of these two adjustments on fourth quarter results was $0.08.

Gross margin for the quarter was 38.7 percent, up 4.3 percentage points from 34.4 percent for the previous quarter, and down 1.1 percentage points from 39.8 percent for the fourth quarter of 2005. Excluding nonrecurring charges and benefits, operating expenses for the quarter increased to $24.7 million from $23.4 million for the previous quarter, and $20.6 million from the fourth quarter of 2005, primarily due to increased personnel costs, commissions, and support costs for evaluation equipment. Excluding nonrecurring charges and benefits, operating expenses as a percentage of net sales were 29.5 percent for the quarter, down from 30.6 percent for the previous quarter, and down from 41.0 percent in the fourth quarter of 2005.

Shipment revenues for the quarter were $88.0 million, up 19.5 percent from $73.6 million for the previous quarter, and up 87.6 percent from $46.9 million for the fourth quarter of 2005. Net bookings for the current quarter were $72.6 million, down 11.0 percent from $81.6 million for the previous quarter, and up 45.2 percent from $50.0 million for the fourth quarter of 2005. Net bookings in the current quarter resulted in a book-to-bill ratio of 0.83. Deferred revenues (which represent unrecognized revenues and pre-paid royalties received from DNS) were $16.8 million at the end of the current quarter, compared with $12.9 million at the end of the previous quarter, and $12.5 million at the end of 2005.

Cash, cash equivalents, and short-term investments at the end of the current quarter were $138.9 million, up $6.4 million from $132.5 million at the end of the prior quarter, and up $9.6 million from $129.3 million at the end of 2005.

“In 2006, Mattson outgrew the industry, delivering record revenue, bookings and cash for the year," said David L. Dutton, chief executive officer of Mattson Technology.

“Our flagship Suprema™ system has secured orders from our major strip customers, and our recently introduced Atmos™ thermal oxidation tool is penetrating new accounts, positioning us to achieve further share gains. We expect that 2007 will be another growth year for Mattson, one in which we are positioned to set new records and grow share by leveraging our existing technologies to expand into new segments,” concluded Dutton.

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

On Wednesday, January 31, 2007, at 5:30 PM Eastern Time (2:30 PM Pacific Time), Mattson will hold a conference call to review the following topics: fourth quarter 2006 financial results, current business conditions and the near-term business outlook. The conference call will be simultaneously webcast at www.mattson.com under the “Investors” section. In addition to the live webcast, a replay will be available to the public on the Mattson website for one week following the live broadcast.

“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking statements regarding the company's future prospects, including, but not limited to: anticipated bookings, revenue, margins, earnings per share, market share, tax rate, and fully diluted shares outstanding for future periods. Forward-looking statements address matters that are subject to a number of risks and uncertainties that can cause actual results to differ materially. Such risks and uncertainties include, but are not limited to: end-user demand for semiconductors; customer demand for semiconductor manufacturing equipment; the timing of significant customer orders for the company's products; customer acceptance of delivered products and the company's ability to collect amounts due upon shipment and upon acceptance; the company's ability to timely manufacture, deliver and support ordered products; the company's ability to bring new products to market and to gain market share with such products; customer rate of adoption of new technologies; risks inherent in the development of complex technology; the timing and competitiveness of new product releases by the company's competitors; the company's ability to align its cost structure with market conditions; and other risks and uncertainties described in the company's Forms 10-K, 10-Q and other filings with the Securities and Exchange Commission. Results for the current quarter are preliminary and subject to adjustment. The company assumes no obligation to update the information provided in this news release.

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.