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. 970.407.6570 cathy.kawakami@aei.com

Advanced Energy Reports Second Quarter 2002 Results

Fort Collins, Colorado (July 22, 2002)—Advanced Energy (Nasdaq: AEIS) today reported financial results for the second quarter ended June 30, 2002. 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.

 

Revenue for the second quarter of 2002 increased 47 percent to $67.9 million, compared to second quarter 2001 revenue of $46.2 million. Revenue for the second quarter of 2002 increased 58 percent compared to first quarter 2002 revenue of $42.9 million.

Net loss for the second quarter of 2002 was $5.1 million, or $0.16 per share compared to the second quarter 2001 net loss of $14.5 million, or $ 0.46 per share. This compares to the first quarter 2002 net loss of $8.7 million, or $0.27 per share. The second quarter of 2002 includes $5.3 million pretax loss related to the previously announced patent infringement judgment against the Company, and associated legal expenses, and $4.5 million pretax gain related to foreign exchange.

Sales for the six months ended June 30, 2002 were $110.8 million versus $120.9 million for the first six months of 2001. Net loss for the 2002 six-month period was $13.9 million, or $0.43 per share, compared with a net loss of $9.5 million, or $0.30 per share, for the 2001 six-month period.

Doug Schatz, chairman and chief executive officer, said, “We are pleased to report 58 percent sequential growth in revenue, and a lower net loss for in the second quarter of 2002. The strength was driven primarily by sales to our US-based semiconductor capital equipment OEM customers, emphasizing our strong technological position and design-win momentum.

“Visibility remains limited due to uncertainty in end market demand, driven by the anticipated slower rate of recovery in PC, consumer electronics and telecommunications markets. Given this uncertainty, we are implementing stringent cost containment and reductions measures, while still investing in the critical areas necessary to meet our strategic goals,” said Mr. Schatz.

Based on information currently available, the Company expects third quarter revenues in the $68 million to $70 million range and a loss per share of $0.10 to $0.12 cents, before any one time charges.

Second Quarter 2002 Conference Call
Management will host a conference call today, Monday, July 22, 2002 at 9:00 am Eastern time to discuss the financial results. You may access this conference call by dialing 888-713-4717. International callers may access the call by dialing 706-679-7720. For a replay of this teleconference, please call 706-645-9291, code 3916952. The replay will be available through Monday, July 29, 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 components and sub-systems critical to plasma-based manufacturing processes used in the production of semiconductors, flat panel displays, data storage products, compact discs, digital video discs, architectural glass, and other applications that require precise thin-film processes.

AE offers a comprehensive line of technology solutions in power, flow and thermal management, plasma and ion beam sources, and integrated process monitoring and control to original equipment manufacturers (OEMs) and end-users around the world.

AE operates in regional centers in North America, Asia and Europe, and offers global sales and support through direct offices, representatives and distributors. Founded in 1981, AE is a publicly-held company traded on Nasdaq National Market under the symbol AEIS. For more information, please visit our corporate website: 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