For more information, contact:

Richard Beck Advanced Energy Industries 970/407-6204

Catherine Roberts Financial Relations Board/San Francisco 415/986-1591

Advanced Energy Industries Secures $30 Million Revolving Credit Line: Company Looking for Opportunities to Grow the Business

FORT COLLINS, Colorado (December 23, 1997)—Advanced Energy Industries, Inc. (Nasdaq:AEIS) is actively looking for opportunities to grow its business and has $58 million in cash and credit to help fund future growth, according to Douglas S. Schatz, president and chief executive officer.

 

Today, Advanced Energy announced a new, unsecured line of credit totaling $30 million. The three-year revolving line provides for up to $10 million to be termed out for acquisitions or capital equipment financing. Interest rate for the line is prime rate minus 125 basis points or LIBOR plus 150 basis points. “This new credit line and the estimated $28 million we have in cash, gives us the flexibility to take advantage of future growth opportunities as they arise,” said Schatz. “The fact that this line of credit comes with an interest rate below prime makes it even more appealing to us.” Advanced Energy currently has no bank debt.

The new credit line was secured through Silicon Valley Bank and Bank of Hawaii. Greg Becker, senior vice president of Silicon Valley Bank, said, “We truly value the long-term relationship we have established with Advanced Energy and are very excited to provide this type of financing which will allow the company to achieve its long-term goals.” Richard Beck, chief financial officer for Advanced Energy, said, “It is through our strong relationships with organizations such as Silicon Valley Bank, that we are able to build Advanced Energy’s presence in new and existing markets. We are very pleased to further strengthen our relationship with these banks.”

During 1997, Advanced Energy gained market share in all the markets it serves, and entered several new markets through two acquisitions. Schatz said that the company’s growth momentum would continue into 1998, as it pursues new markets and expands its lead in existing ones. “Our goal is to become the power delivery system provider of choice for any OEM involved in the manufacture of products using thin-film technology,” Schatz said. Currently, Advanced Energy dominates the semiconductor, flat panel display, and data storage markets for power delivery systems. The company also has made market share gains in the industrial, medical, printing and automotive industries.

Safe Harbor Statement
Except for any historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties, including the achievement of goals established by the Company to improve gross margin and maintain operating expenses in line with revenue, continued sales growth in non-semiconductor areas, and other risks detailed from time to time in reports to the Securities and Exchange Commission, including the Company’s Form 10-K and Forms 10-Q. The Company continues to be susceptible to fluctuations in quarterly and annual revenues and operating results. The Company assumes no obligation to update the information in this release.

About the Company
Advanced Energy Industries, Inc. was founded in 1981 and is a leading manufacturer of power delivery systems that are critical in the manufacturing of semiconductors, data storage media, flat panel displays, and other products using thin-film technology. Within its comprehensive product portfolio of direct current (DC), low/mid-frequency and radio frequency (RF) solutions, the Company sells hundreds of different products critical in applications ranging from compact disks, digital video disks, flat panel displays, and the most popular logic semiconductor devices, among many other applications. The Company’s stock is traded on Nasdaq under the symbol AEIS.

For more information, access Advanced Energy’s web site at www.advanced-energy.com or for information via fax, no cost, dial 800-PRO-INFO, code AEIS.