For more information, contact:

Richard Beck Advanced Energy Industries, Inc. (970) 407-6204

Janet Nelson (analysts/investors) The Financial Relations Board/BSMG Worldwide (415) 986-1591

Advanced Energy Industries Expands Interest in Litmas Corp.

FORT COLLINS, CO (August 9, 1999) -- Advanced Energy Industries, Inc. (Nasdaq NM: AEIS) announced today that it has obtained a majority interest in Litmas Corp., a manufacturer of plasma abatement systems and high-density plasma sources for the semiconductor equipment industry. Litmas was founded in 1997 by Rusty Jewett, Ph.D., and Curtis Camus, and is located in Matthews, North Carolina. Litmas’ first product, “Litmas Blue,” is used to reduce PFC and HFC emissions from tools used in the etch process, a critical step in the manufacture of semiconductors.

 

Testing by Sematech (see http://www.sematech.org/public/docubase/abstract/3605aeng.htm)and Motorola of an oxide etch tool under production conditions shows a 99% decrease in the global warming potential of tool emissions when the Litmas system is used. Besides the high efficiency and easy installation, a further advantage is its low cost of ownership, due in part to its novel use of water vapor as a reaction gas for the chemistry instead of expensive and dangerous gases.

Commenting on the partnership, President of Litmas Rusty Jewett, Ph.D., said, “From Litmas’ inception, Advanced Energy has provided both financial and managerial guidance to help transition our emerging technology from the laboratory into an industrial environment. This latest change in the relationship between our two companies provides Litmas with the financial strength to support our manufacturing ramp, while retaining our independence. That freedom allows Litmas to retain its focus on our plasma source and exhaust gas treatment customers. Our relationship with Advanced Energy strengthens our position as the leader in plasma treatment of exhaust gases.”

“The work that Litmas has done is definitely leading-edge,” said Doug Schatz, Chief Executive Officer of Advanced Energy. “They not only have great technology, but they were the first ones working in this area. Advanced Energy made an original seed investment in Litmas and has watched it grow successfully. We have tremendous respect for the efforts and results by the people at Litmas, and we regard their technology and success as milestones for both companies. We believe that this success also serves as a great model, where we can support an early-stage effort and help entrepreneurs with energy and powerful ideas get into the mainstream and still keep their motivation. This partnership also represents a further extension of our commitment to expand our offerings and services to customers in the semiconductor industry.”

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 the Company’s Securities and Exchange Commission reports, 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 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. 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