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Doug Schatz Announces his Intention to Retire as President and CEO of AE

Fort Collins, Colorado, January 4, 2005—Advanced Energy (Nasdaq: AEIS) today announced that Douglas S. Schatz, president, chief executive officer and chairman of the board, plans to retire from his executive positions. He will continue as president and CEO until his successor is named and then as non-executive chairman of the board of directors. The board has established a search committee to find his successor.

Mr. Schatz said, "AE is a market leader, well positioned for a return to the profitability the company experienced throughout most of our history. Since founding AE in 1981, I've worked to ensure that we have an unparalleled technology foundation for the future growth of the company. As non-executive chairman, I intend to work closely with the new CEO on the strategic direction of the company. With our technology established and the operational changes we have recently made I now want to focus on strategic rather than operational issues.

"The serious volatility of the semiconductor industry during the past several years has required AE to adapt to a new business plan and we are continuing a business transformation process to implement that plan. I view this time as an excellent opportunity for me to focus on the chairman's role in support of the CEO position," concluded Mr. Schatz.

"Doug Schatz has made major contributions to the industry and the company since he founded AE 23 years ago," said Elwood Spedden, lead director of the board. "His vision has grown the company beyond the semiconductor industry and developed AE as a leader in all markets that it serves. The board of directors is thankful to Doug for his significant technology achievements and for his leadership, and we look forward to his continued contributions.

About Advanced Energy
Advanced Energy is a global leader in the development and support of technologies critical to high-technology manufacturing processes used in the production of semiconductors, flat panel displays, data storage products, compact discs, digital video discs, architectural glass and other advanced product applications.

Leveraging a diverse product portfolio and technology leadership, AE creates solutions that maximize process impact, improve productivity and lower cost of ownership for its customers. This portfolio includes a comprehensive line of technology solutions in power, flow management, thermal instrumentation and plasma and ion beam sources for 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. More information can be found at www.advanced-energy.com