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 Revises First Quarter Outlook

Fort Collins, Colorado (March 1, 2001)—Advanced Energy (Nasdaq: AEIS) today announced revisions to its business outlook for the first quarter of 2001. Advanced Energy is an industry-leading provider of critical technology solutions for the manufacture of semiconductors, data storage products, and flat panel displays.

 

Doug Schatz, Advanced Energy's Chairman and Chief Executive Officer, said, "We have experienced increased volatility in the weeks following our recent financial results press release that included our business outlook for the first half of 2001. We have seen greater weakness in order patterns, including substantial cancellations and push-outs from our major OEM customers. As a result, we have revised our outlook for the current quarter, down 12 percent from our previous expectations. We now anticipate revenues in the $73 million to $76 million range, compared to prior expectations of revenues between $83 million and $86 million."

The company has implemented additional cost controls including a hiring freeze, additional salary reductions, one week shutdowns in the first quarter and second quarter, as well as further restrictions on travel and discretionary spending. The company anticipates first quarter gross margins in the low to mid 40 percent range, due to the reduced revenue expectations.

"Despite the uncertainty and limited visibility for 2001, we believe the semiconductor industry is supported by compelling growth drivers in 2002 based on the transitions underway to 300mm, copper, and low-k dielectrics. We are committed to maximizing shareholder value by continuing to invest in programs that ensure Advanced Energy's long-term growth. As we have done in prior downturns, we will prioritize engineering and technology development in order to maintain our track record of market share gains and technology leadership," said Mr. Schatz.

Conference Call Details Management will host a conference call today, Thursday, March 1, 2001 at 5:00 pm Eastern time to discuss this announcement. You may access this conference call by dialing 888-806-9460. (International callers, please dial 703-871- 3094.) For a replay of this teleconference, please call 703-925-2533, passcode 5040692. The replay will be available through Thursday, March 8, 2001. There will also be a webcast available at www.advanced-energy.com in the "Investor Relations" section of the website.

About Advanced Energy
Advanced Energy is a global leader in the development, marketing, and support of integrated technology solutions that are central in the manufacture of semiconductors, data storage products, and flat panel displays as well as other mission-critical power applications. AE's comprehensive suite of custom subsystems for vacuum processing includes power conversion and control solutions, process monitoring and machine control tools, ion-beam sources, dynamic temperature control and measurement products, mass flow systems, and plasma abatement technologies. AE's URL is www.advanced-energy.com

Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from the forward-looking statements which, by their nature, are subject to risk and uncertainties including fluctuations in quarterly and annual revenues, and operating results, the volatility and cyclicality of the semiconductor and semiconductor capital equipment industries, our expected benefits from acquisitions, and our ability to integrate acquired companies' operations successfully. These and other risks are detailed in the company's form 10-K, forms 10-Q and other reports and statements filed with the SEC. The company assumes no obligation to update the information in this release. Free copies of this and other documents are available from the SEC at www.sec.gov or Advanced Energy at 1625 Sharp Point Drive, Fort Collins, CO 80525; 970-221