For more information, contact:

Jim Donaldson Advanced Energy Industries, Inc. 970.407.6374

Marna Shillman Advanced Energy Industries, Inc. 970.407.6280 marna.shillman@aei.com

Advanced Energy Names Michael D. Smith General Manager Of Customer Operations, China

FORT COLLINS, Colo., July 3, 2003—Advanced Energy Industries, Inc. (Nasdaq: AEIS) today announced that it has named Michael D. Smith to the newly created position of General Manager of Customer Operations, China. Formerly with Axcelis, Smith is chartered with building on AE’s existing customer base in China’s semiconductor and thin-film transistor (TFT) markets. He oversees all sales, service and marketing for the company’s flow, power, thermal, source and instrumentation product lines and manages its new Class 1000 cleanroom in Shanghai—built to provide service to local flow customers and to complement AE’s state-of-the-art Shenzhen manufacturing facility.

 

AE opened its first customer operations office in China in 1999. Since then, AE has consistently provided first-tier regional customer service and support. Smith’s appointment continues AE’s strategic focus on customer operations in China to gain closer proximity to existing customers and on establishing new customer relationships in this important region.

Complementing AE’s customer operations focus, AE is also strategically focused on providing world-class manufacturing in China. Consequently, in April AE opened its 87,000-square-foot Shenzhen facility which provides flexible, scalable manufacturing support for most of AE’s product lines. Fully staffed under the direction of Randy Tan, Plant Manager, this facility is the hub of AE’s comprehensive, world-class supply chain. The new Shenzhen facility enables AE to orchestrate significant improvements in supplier quality, and thus higher product quality, and ultimately higher performing products for its customers.

Commenting on the importance of AE’s presence in this critical region, AE Chairman and CEO Douglas Schatz noted, “With Michael’s appointment, AE has now put into place two vital, yet separate, infrastructure entities in China—customer operations and manufacturing operations. Together, AE is now fully positioned to expand customer support to the burgeoning semiconductor manufacturing business as well as fully positioned to exploit the supply-chain excellence and manufacturing synergies of the region.”

AE Executive Vice President and COO Dennis Faerber stated, “Many in our industry anticipate that China is the next hotbed for semiconductor manufacturing. Michael’s expertise in the region will be instrumental in further developing and sustaining AE’s sales and support in China.”

In addition to his most recent role at Axcelis, Smith held several marketing management and customer support account management positions there between 1996 and 2003. He has lived in China and Taiwan for the past 10 years and is fluent in Mandarin.

About Advanced Energy
Advanced Energy is a global leader in the development and support of critical technologies for high-technology manufacturing processes used in the production of semiconductors, flat panel displays, data storage products, compact discs, digital video discs, architectural glass, and other advanced product applications.

Leveraging a diverse product portfolio and technology leadership, AE creates solutions that maximize process impact, improve productivity and lower cost of ownership for its customers. This portfolio includes a comprehensive line of technology solutions in power, flow and thermal management, plasma and ion beam sources, and integrated process monitoring and control for original equipment manufacturers (OEMs) and end-users around the world.

AE operates in regional centers in North America, Asia and Europe, and offers global sales and support through direct offices, representatives and distributors. Founded in 1981, AE is a publicly held company traded on Nasdaq National Market under the symbol AEIS. For more information, please visit our corporate Website: www.advanced-energy.com