Mattson Technology, Inc. Reports Results for the First Quarter 2009

FREMONT, CA, Apr 29 (MARKET WIRE) --
Mattson Technology, Inc. (NASDAQ: MTSN), a leading supplier of advanced
process equipment used to manufacture semiconductors, today announced
results for its first quarter of 2009 (ended March 29, 2009).

First Quarter 2009 Financial Results

Net sales for the first quarter were $5.6 million, compared to $13.1
million in the fourth quarter, and $48.7 million in the first quarter of
2008. Gross margin for the first quarter was negative $7.9 million,
compared to $0.6 million in the fourth quarter, and $20.8 million in the
first quarter of 2008. The decline in gross margin is primarily
attributable to manufacturing under-absorption at these low revenue
volumes, and $9.3 million of additional reserves for excess inventory and
vendor commitments.

Operating expenses for the first quarter were $20.4 million, compared to
$60.1 million in the fourth quarter and $24.7 million for the first
quarter of 2008. First quarter operating expenses included charges of
$0.9 million relating to prior year restructuring plans. Operating
expenses for the fourth quarter included $30.9 million related to
restructuring charges, and the impairment of goodwill, intangibles and
long-lived assets. Operating expenses for the fourth quarter also
included $5.5 million in SG&A costs related to accelerated amortization
on evaluation tools placed at customer sites and incremental receivable
reserves.

Net loss for the first quarter was $27.2 million, or $0.55 loss per share,
compared with a net loss of $60.5 million, or $1.22 loss per share, for
the fourth quarter and net loss of $4.2 million, or $0.09 loss per share,
for the first quarter of 2008. Included in the net loss for the first
quarter were restructuring charges of $0.9 million or $0.02 loss per
share compared to restructuring and impairment charges totaling $30.9
million or $0.62 loss per share in the fourth quarter.

Cash, cash equivalents and short-term investments at the end of the first
quarter were $91.6 million, compared to $103.4 million at the end of the
fourth quarter. The rate of decrease in cash slowed as compared to prior
periods, despite lower revenue levels. Cash decreased by $11.8 million in
the first quarter, compared to a decrease of $14.3 million in the fourth
quarter and a decrease of $18.0 million in the third quarter.

David L. Dutton, Mattson Technology's president and chief executive
officer, noted, "Our strict cost containment measures have resulted in
reduced operating expenses of approximately 30 percent over the past six
months, and we have continued to achieve our stated cash targets."

Dutton also commented on the current momentum in business conditions.
"Recently, there have been incrementally positive indications from the
market that the industry is showing signs of stabilization. Industry
utilization rates have improved, and specific to Mattson Technology,
customer activity has increased, particularly involving technologies in
our new product portfolio. The recently announced follow-on order for our
Nexion(TM) etch systems is testament to the differentiated and advanced
technical solutions that we provide to our global customer base."

Attached to this news release are preliminary unaudited condensed
consolidated statements of operations and balance sheets.

Conference Call

On Wednesday, April 29, 2009, at 2:00 PM Pacific Time (5:00 PM Eastern
Time), Mattson Technology will hold a conference call to review the
following topics: 2009 first quarter financial results, current business
conditions, the near-term business outlook and guidance for the second
quarter of 2009. The conference call will be simultaneously webcast at
www.mattson.com under the "Investors" section. In addition to the live
webcast, a replay will be available to the public on the Mattson
Technology website for one week following the live broadcast.

To access the live conference call, please dial (719) 325-4779.

Mattson will also webcast a slide presentation in conjunction with the
conference call, which can also be accessed at www.mattson.com under the
"Investors" section.

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act
of 1995: This news release contains forward-looking statements regarding
the Company's future prospects and plans, including, but not limited to:
our cost reduction plans, potential future earnings cash flow and other
financial results, future customer demand and industry conditions, and the
market acceptance of Company products. Forward-looking statements address
matters that are subject to a number of risks and uncertainties that can
cause actual results to differ materially. Such risks and uncertainties
include, but are not limited to: end-user demand for semiconductors;
customer demand for semiconductor manufacturing equipment; the timing of
significant customer orders for the Company's products; customer
acceptance of delivered products and the Company's ability to collect
amounts due upon shipment and upon acceptance; the Company's ability to
timely manufacture, deliver and support ordered products; the Company's
ability to bring new products to market and to gain market share with
such products; customer rate of adoption of new technologies; risks
inherent in the development of complex technology; the timing and
competitiveness of new product releases by the Company's competitors; the
Company's ability to align its cost structure with market conditions; and
other risks and uncertainties described in the Company's Forms 10-K, 10-Q
and other filings with the Securities and Exchange Commission. Results
for the current quarter are preliminary and subject to adjustment. The
Company assumes no obligation to update the information provided in this
news release.

About Mattson Technology, Inc.

Mattson Technology, Inc. designs, manufactures and markets semiconductor
wafer processing equipment used in the fabrication of integrated circuits.
We are a leading supplier of plasma and rapid thermal processing equipment
to the global semiconductor industry. Through manufacturing and design
innovation, we have produced technologically advanced systems that provide
productive and cost effective solutions for customers fabricating current-
and next-generation semiconductor devices. For more information, please
contact Mattson Technology, Inc., 47131 Bayside Parkway, Fremont, CA,
94538. Telephone: (800) MATTSON/(510) 657-5900. Internet: www.mattson.com.

MATTSON TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share amounts)

Three Months Ended
-------------------------------------
March 29, December 31, March 30,
2009 2008 2008
----------- ----------- -----------
Sales
Products $ 4,699 $ 11,620 $ 46,692
Services 873 1,445 1,963
----------- ----------- -----------
Net sales 5,572 13,065 48,655
----------- ----------- -----------
Cost of sales
Products 13,130 12,080 27,111
Services 357 388 710
----------- ----------- -----------
Cost of sales 13,487 12,468 27,821
----------- ----------- -----------
Gross margin (7,915) 597 20,834
Operating expenses:
Research, development and
engineering 6,650 9,375 7,846
Selling, general and administrative 12,854 19,715 16,775
Amortization of intangibles - 128 128
Restructuring charges 918 3,374 -
Impairment of goodwill - 18,076 -
Impairment of intangibles and
long-lived assets - 9,431 -
----------- ----------- -----------
Total operating expenses 20,422 60,099 24,749
----------- ----------- -----------
Loss from operations (28,337) (59,502) (3,915)
Interest and other income (expense),
net 1,272 671 (167)
----------- ----------- -----------
Loss before income taxes (27,065) (58,831) (4,082)
Provision for income taxes 162 1,625 134
----------- ----------- -----------
Net loss $ (27,227) $ (60,456) $ (4,216)
=========== =========== ===========
Net loss per share:
Basic $ (0.55) $ (1.22) $ (0.09)
=========== =========== ===========
Shares used in computing net loss
per share:
Basic 49,703 49,614 49,362
=========== =========== ===========

MATTSON TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)

March 29, December 31,
2009 2008
(unaudited) (1)
----------- -----------
ASSETS
Current assets:
Cash, cash equivalents and short-term
investments $ 91,580 $ 103,387
Accounts receivable, net 2,921 14,477
Advance billings - 140
Inventories 39,756 48,410
Inventories - delivered systems - 956
Prepaid expenses and other assets 5,974 5,765
----------- -----------
Total current assets 140,231 173,135
Property and equipment, net 26,674 27,144
Other assets 7,626 7,932
----------- -----------
Total assets $ 174,531 $ 208,211
=========== ===========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 5,100 $ 7,205
Accrued liabilities 20,040 21,241
Deferred revenue 2,584 4,198
----------- -----------
Total current liabilities 27,724 32,644
Income taxes payable, non-current 12,708 13,467
Other liabilities 4,931 5,264
----------- -----------
Total liabilities 45,363 51,375
----------- -----------
Stockholders' equity:
Common stock 54 54
Additional paid-in capital 629,484 628,632
Accumulated other comprehensive income 18,962 20,255
Treasury stock (37,986) (37,986)
Accumulated deficit (481,346) (454,119)
----------- -----------
Total stockholders' equity 129,168 156,836
----------- -----------
Total liabilities and stockholders'
equity $ 174,531 $ 208,211
=========== ===========

(1) Derived from audited financial statements

Mattson Technology Contact:
Andy Moring
Mattson Technology, Inc.
tel 510-657-5900
fax 510-492-5963
andy.moring@mattson.com

Investor & Media Contact:
Laura Guerrant-Oiye
Guerrant Associates
tel 808-882-1467
fax 808-882-1267
lguerrant@guerrantir.com

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