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Advanced Energy Reports First Quarter Results

Fort Collins, Colorado (April 12, 2001)--Advanced Energy Industries, Inc. (Nasdaq: AEIS) today reported financial results for the first quarter and period ended March 31, 2001. Advanced Energy is an industry-leading provider of critical technology solutions for the manufacture of semiconductors, data storage products, and flat panel displays.

For the first quarter, revenues were $74.7 million, compared to $75.0 million in the first quarter of 2000, and $102.7 million for the fourth quarter of 2000. The company's 2000 results have been restated to reflect the April 6, 2000 acquisition of Noah Holdings and the August 18, 2000 acquisition of Sekidenko, Inc., using the pooling of interests method of accounting.

"Our financial performance in the first quarter was in line with our revised expectations, reflecting the continuing softness in industry demand patterns," said Doug Schatz, Chairman and Chief Executive Officer. "In order to continue to meet our operating goals in light of this difficult environment, we have taken several cost containment initiatives including ten percent salary reductions for senior management, substantial reductions in travel, cutbacks in other discretionary spending and two shutdown weeks during the second quarter. The continuing deterioration in all of the industries we serve has caused us to implement a ten percent reduction in force or 75 full time continuous and 89 temporary employees. We are providing severance packages and job placement services to the employees affected by this industry related action."

Net income for the 2001 first quarter was $5.1 million, or $0.16 per diluted share. Gross margin was 42 percent in the first quarter, down from 49 percent in the comparable quarter in 2000 and in line with our expectations. This compares to net income of $11.2 million or $0.35 per diluted share for the first quarter of 2000, and net income of $19.8 million, excluding the extraordinary item, or $0.61 per diluted share, for the fourth quarter of 2000.

"We continue to have limited visibility for the year 2001. Based on current demand forecasts for the second quarter, we anticipate revenue in the $60 million to $65 million range and earnings per share in the $0.05 to $0.07 range. We expect gross margin to be in the range of 38 percent to 41 percent. The reduced revenue level will continue to create pressure on our operating margins. We expect the cost containment actions implemented late in the first quarter to have a greater impact during the second quarter, in addition to the additional cost reduction measures taken in this current quarter."

"We remain committed to our ongoing product development efforts through continued investments in engineering, strengthening our alliances with customers and furthering the integration of our new subsidiaries. We have gained market share in prior industry downturns, and we are well-positioned to continue to extend our technology lead throughout this cycle," said Mr. Schatz.

First Quarter Conference Call Management will host a conference call on Thursday, April 12, 2001 at 9:30 am Eastern time to discuss the first quarter financial results. You may access this conference call by dialing 800-982-3654. For a replay of this teleconference, please call 703-925-2533, passcode 5063866. The replay will be available through Thursday, April 19, 2001. There will also be a webcast available at www.advanced-energy.com in the 'Investor Relations' section.

About Advanced Energy
Advanced Energy is a global leader in the development, marketing, and support of technology solutions that are central 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 offe