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Richard Beck Advanced Energy Industries 970/407-6204

Catherine Roberts Advanced Energy Industries 970/407-6732

Advanced Energy Industries Completes Acquisition of RF Power Products

FORT COLLINS, COLORADO -- October 8, 1998 Advanced Energy Industries, Inc. (Nasdaq:AEIS) has completed the acquisition of RF Power Products, Inc. (“RFPP”) for 4,000,000 shares of common stock in exchange for all the outstanding shares of RFPP. The aggregate value of the transaction is approximately $30 million. RFPP stockholders will receive one share of Advanced Energy stock for roughly every three shares of RFPP stock.

 

The acquisition has been accounted for as a pooling of interests, with RF Power Products a wholly-owned subsidiary of Advanced Energy. RFPP designs and manufactures radio frequency (RF) power systems, matching networks and peripheral products primarily for original equipment providers in semiconductor, commercial coating, flat panel display and analytical instrumentation markets. The company reported fiscal 1997 revenues of $33.8 million.

Douglas S. Schatz, Advanced Energy’s Chairman and Chief Executive Officer, said the acquisition of RFPP should enhance Advanced Energy’s presence in the RF market, both in market share and technology resources. “Combined with our RF technology, this acquisition enables us to provide our global customers with the most complete suite of RF power solutions available today, while expanding our technology base and service capabilities,” he said.

The acquisition of RF Power Products is another step in Advanced Energy’s strategy of global expansion in the RF market. In September, Advanced Energy announced the purchase of Fourth State Technology, Inc., a privately held company in Austin, Texas.

Fourth State Technology is a process control company whose products are used to monitor the RF power process, collect data and provide an analysis of data for process control and improvements.

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 achievement of goals established by the Company to improve gross margins, maintain operating expenses, continue sales growth, and other risks detailed from time-to-time in the Company’s Securities and Exchange Commission reports, including the continuation of significant economic problems in Asia and Japan. The Company continues to be susceptible to fluctuations in quarterly and annual revenues and operating results. Advanced Energy Industries assumes no obligation to update the information in this release.

Advanced Energy Profile
Advanced Energy Industries, Inc. was founded in 1981 and is the 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, 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 regarding Advanced Energy Industries via fax at no additional cost, simply dial 1-800-PRO-INFO, ticker symbol AEIS.