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Advanced Energy Industries Raises $159 Million in Public Offerings

The company sold $120 million principle amount of its 5 ¼% convertible subordinated notes due 2006 through a registered public offering. The notes have a term of seven years and are convertible into shares of the company’s common stock at a 27% premium. Under the terms of the offering, the initial purchasers have a 30-day option to purchase an additional $15 million of the notes to cover over-allotments, if any.

Additionally, Advanced Energy sold one million shares, raising $39 million, and another two million shares were offered by certain selling shareholders. Goldman Sachs & Co. was the lead manager of both the common stock and convertible subordinated notes offerings.

According to Goldman Sachs, the combined offerings were the largest dual tranche of common stock and convertible subordinated notes in the semiconductor capital equipment industry. The combined offering was the third largest total offering in the semiconductor capital equipment industry.

Douglas S. Schatz, President and CEO of Advanced Energy, said, “With the proceeds from these offerings, we will continue to fund our growth, which includes evaluating opportunities to invest in new technologies, both within and outside of the company. The added strength of our balance sheet will allow us to pursue acquisition opportunities that will strengthen our strategy to become a more significant supplier to the semiconductor equipment industry, while further broadening our markets.”

Safe Harbor Statement
Except for any historical information contained herein, the matters discussed in this news release are forward-looking statements that reflect our current beliefs and expectations 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. Actual results may differ materially from the forward-looking statements which by their nature are subject to risks and uncertainties including fluctuations in quarterly and annual revenues and operating results, the volatility of the semiconductor and semiconductor capital equipment industries and other risks detailed from time to time in the Company’s Form 10-K, Forms 10-Q and other reports and statements filed with the Securities and Exchange Commission. The Company continues to be susceptible to fluctuations in quarterly and annual revenues and operating results and the volatility of the semiconductor and semiconductor capital equipment industries. The Company assumes no obligation to update the information in this release.

About the Company
Founded in 1981, Advanced Energy Industries, Inc. 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. The Company also manufactures ion beam sources and plasma abatement systems for applications in data storage and semiconductor manufacturing. 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 the Nasdaq National Market under the symbol AEIS.

For more information, access Advanced Energy’s web site at www.advanced-energy.com or for information via fax, at no cost, dial 1-800-PRO-INFO, code AEIS.