For more information, contact:

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

Dori Jones MCA 650.968.8900

Pinnacle^® DC Power Supply Becomes the Standard for Leading Supplier's Magnetic Disk Sputtering System

FORT COLLINS, Colo., May 18, 2004—Advanced Energy Industries, Inc. (Nasdaq: AEIS) today announced that a leading equipment supplier to the media/data storage industry has selected AE’s Pinnacle® dual-output DC power supply as the default standard for its new, magnetic disk sputtering system. This well-established customer chose to standardize on AE’s state-of-the-art Pinnacle system due to the platform’s proven reliability, flexibility, performance capabilities and low operating cost. These capabilities were judged essential to keeping ahead of the demands associated with consumer-driven disk drive markets.

 

Today’s magnetic disks—employed in products ranging from computers, digital cameras and digital video recorders (DVRs) to gaming systems—require a degree of data density that many existing types of manufacturing equipment cannot accommodate. Accordingly, manufacturers are introducing new platforms designed to address the current needs of these growing markets, as well as for the future. These companies need to partner with suppliers possessing the same level of expertise. With its proven family of Pinnacle products, AE delivers unmatched operational power, as well as the critical parameter of minimal arc energy to its customers in the disk drive market.

Advanced Energy CEO Doug Schatz stated, “We are extremely pleased that this valued customer has named AE supplier of choice for its new disk sputtering system, and are confident that our product will prove invaluable as this customer moves to a new level of manufacturing process capability. By working closely with equipment suppliers and end users, and listening to their unique needs, AE is able to develop the innovative and cost-efficient technology solutions that help them meet not only their current requirements, but their future roadmap goals as well.”

Senior Vice President and General Manager of AE’s product groups, Steve Rhoades, noted, “We put significant importance on continuing the valuable relationship with this long-standing customer. In addition to the Pinnacle unit’s low energy storage during arcing, wide operational power range and proven reliability, some other key factors contributed to this customer’s purchasing decision over other power supplies. Specifically, our dual-output design provides unprecedented flexibility and enables equipment manufacturers to save on equipment cost and footprint. We look forward to expanding our reach within the important data storage market through our continued relationship with this equipment manufacturer, a fellow technology leader and innovator.”

AE Pinnacle DC Power Supply
AE’s field-proven Pinnacle platform of DC power supplies delivers remarkable process consistency and control for significantly reduced variation and higher yields. This compact, versatile package offers the lowest stored energy, fastest arc response and widest full-power operational impedance range in the industry. These unprecedented capabilities, combined with superior efficiency and the highest power factor available, deliver unmatched process benefits.

AE has shipped over 13,000 Pinnacle power supplies worldwide, to date. With the successful introduction of its manufacturing facility in China, where the majority of Pinnacle products will be produced, the company is poised to meet burgeoning global demand for its power supplies.

About Advanced Energy
Advanced Energy is a global leader in the development and support of technologies critical to 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 management, thermal instrumentation and plasma and ion beam sources 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. More information can be found at www.advanced-energy.com