For more information, contact:

Mike El-Hillow Advanced Energy Industries, Inc. 970.407.6570 mike.el-hillow@aei.com

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

Advanced Energy Reports Fourth Quarter and Full-Year 2001 Results

Fort Collins, Colorado (February 13, 2001)—Advanced Energy (Nasdaq: AEIS) today reported financial results for the fourth quarter and full-year ended December 31, 2001. Advanced Energy is a leading global provider of critical components and sub-systems used in the production of semiconductors, flat panel displays, data storage products and other advanced applications.

 

Fourth Quarter Review
For the 2001 fourth quarter, revenues were $34.0 million, down 67 percent from $102.7 million for the fourth quarter of 2000, and down 12 percent from $38.7 million for the third quarter of 2001.

Net loss for the fourth quarter 2001 was $14.4 million, or $0.45 per share compared to fourth quarter 2000 net income of $27.4 million, or $0.83 per diluted share. This compares to the third quarter 2001 net loss of $7.5 million, or $0.24 per share. Pro forma net loss from operations for the fourth quarter of 2001 was $9.4 million, or $0.29 per share, excluding a $2.5 million restructuring charge related to October 2001 cost containment initiatives and a $5.6 million charge related to a technology investment.

Doug Schatz, chairman and chief executive officer, said, “Despite the continuation of a challenging industry environment, fourth quarter revenue came in slightly above our expected range. We believe there is some stabilization in our end markets, as evidenced by the decrease in customer order cancellations and push-outs we experienced earlier in the quarter.”

Full Year Review
For the full year 2001, revenues were $193.6 million compared with $359.8 million for the full year 2000, a decrease of 46 percent. Gross profit for the full year 2001 was $57.4 million, or 30.0 percent, compared with $176.5 million or 49.0 percent for the full year 2000. Net loss for the full year 2001 was $31.4 million or $0.99 per share, compared to net income of $68.0 million or $2.10 per diluted share for the full year 2000.

“Advanced Energy is well-positioned for an industry recovery based on our continued technology lead and our strong presence on new 300mm, copper and low-k dielectric processing tools. Our recent acquisition of Aera Japan Ltd., a world leader in mass flow controllers, expands our global reach, and supports our strategy to provide the critical components and sub-systems that control the plasma manufacturing process,” said Mr. Schatz.

The Company is experiencing a stabilization of orders in the first quarter and expects revenues in the $38 to $40 million range, including Aera.

Fourth Quarter and Year-End Conference Call Management will host a conference call today, Wednesday, February 13, 2002 at 9:00 am Eastern time to discuss the financial results. You may access this conference call by dialing 800-982-3472. For a replay of this teleconference, please call 703-925-2533, passcode 5770769. The replay will be available through Wednesday, February 20, 2002. There will also be a webcast available at www.advanced-energy.com.

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 certain forward-looking statements subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to: the volatility and cyclicality of the semiconductor and semiconductor capital equipment industries, fluctuations in quarterly and annual reve