For more information, contact:

Richard Beck Advanced Energy Industries, Inc. 970.407.6204 dick.beck@aei.com

Cathy Kawakami Advanced Energy Industries, Inc. 970.407.6732 cathy.kawakami@aei.com

Advanced Energy and EMCO Renegotiate Merger

Fort Collins and Longmont, Colorado (October 23, 2000)—Advanced Energy Industries, Inc. (Nasdaq: AEIS) and Engineering Measurements Company (Nasdaq: EMCO) today announced that they have renegotiated their merger agreement and changed the consideration to be paid by Advanced Energy from stock to cash.

 

As a result, the EMCO shareholders’ meeting that was scheduled for today, October 23, 2000, will be rescheduled, and a new proxy statement relating to the amended merger terms will be distributed to the EMCO shareholders. The exact date of the meeting, which Advanced Energy and EMCO intend to hold as soon as possible, will be announced once regulatory authorities clear the new proxy statement.

The original merger agreement, which was announced on July 6, 2000, had provided that Advanced Energy would issue in the merger 900,000 shares of its common stock to the EMCO shareholders. As a result of the recent decline in Advanced Energy's stock price, Advanced Energy now will pay to the EMCO shareholders, if the amended merger agreement is approved, cash in an aggregate amount equal to $30 million plus the exercise prices paid in cash by EMCO option holders on exercise of any EMCO stock options between today and the completion of the merger. EMCO shareholders will receive in the merger up to $7.10 per share of EMCO stock that they hold. The actual amount to be received per share will depend on the EMCO stock options, if any, that are exercised before the completion of the merger.

"We are excited to have EMCO join us as an important part of our integration strategy," said Doug Schatz, Chairman and Chief Executive Officer of Advanced Energy. "Recent stock market volatility, and the subsequent decrease in the value of Advanced Energy shares required us to revisit the terms of our pending merger with EMCO. The board of directors and management of EMCO support our revised offer," continued Mr. Schatz.

The transaction is subject to approval by EMCO’s shareholders and certain other conditions, and there can be no assurance that it will be completed.

About Advanced Energy
Advanced Energy (AE) is a global leader in the development, marketing, and support of technology solutions that are critical in the manufacture of semiconductors, data storage products, and flat panel displays. Original equipment manufacturers (OEMs) and end-users around the world depend on AE products when plasma-based technology plays a vital role in their manufacturing process. AE offers a comprehensive suite of key subsystems for vacuum process systems including power conversion and control solutions, process monitoring and machine control tools, ion-beam sources, dynamic temperature control products, and plasma abatement technologies. AE technology solutions are sold and supported globally by direct offices, representatives and distributors. Founded in 1981, AE is a publicly held company whose common stock is quoted on the Nasdaq National Market under the symbol AEIS.

About EMCO
Engineering Measurements Company designs, manufactures, and markets electronic and electro-mechanical precision instruments for measuring and controlling the flow of liquids, steam, and gases, and also engages in contract electronic printed circuit board assembly. EMCO is a publicly held company whose common stock is quoted on the Nasdaq National Market under the symbol EMCO.

Additional Information
EMCO and its executive officers and directors may be deemed to be participants in the solicitation from EMCO's shareholders of proxies with respect to the merger. Information regarding these executive officers and directors, and a description of any interests that they may have in the merger, will be included in the proxy statement relating to the merger that EMCO will file with the Securities and Exchange Commission. The proxy statement will be mailed to EMCO’s shareholders.

Investors and security holders are urged to read the Proxy St