Mattson Technology, Inc. Reports Results for the 2010 Fourth Quarter and Year-End

FREMONT, CA, Feb 02 (MARKET WIRE) --
Mattson Technology, Inc. (NASDAQ: MTSN), a leading supplier of advanced
process equipment used to manufacture semiconductors, today announced
results for the 2010 fourth quarter and full year ended December 31,
2010.

2010 Business Highlights:
-- Fourth quarter revenue of $41.3 million marked the seventh consecutive
quarter of revenue growth. Fiscal 2010 revenue of $138.3 million grew
225 percent over 2009.

-- 2010 etch revenue increased 6 times over 2009, generated over 30
percent of systems revenue, and expanded into the NAND, foundry, and
packaging markets. In the fourth quarter, Mattson Technology shipped
etchers for production into a new etch application set, which expands
the Company's etch served-available-market by approximately $500
million and doubles the Company's etch application portfolio.

-- Rapid-thermal-processing (RTP) expanded beyond the DRAM market.
Mattson Technology generated revenue from two of the top three NAND
customers and shipped the Helios(R) XP into the logic and foundry lines
of three leading Asian semiconductor manufacturers. Millios(TM),
Mattson's millisecond anneal technology, achieved tool of record status
for advanced logic and DRAM applications at a key customer. Millios is
now being utilized at three key customers for device development down
through the 16-nanometer node.

-- Shipments of Suprema(R) and Aspen III strip products to key foundry and
memory customers continued to expand the Company's core base. In 2010,
Mattson Technology added a new logic/foundry customer, and qualified at
a new NAND customer. The Company is engaged with eight of the top ten
capital equipment spenders in the strip market.

David L. Dutton, Mattson Technology's president and chief executive
officer, noted, "We achieved the majority of the aggressive goals we set
in 2010, particularly in the new product penetration area. The fourth
quarter marked our seventh consecutive quarter of growth, but as we
announced on January 4, 2011, customers rescheduled the shipment of DRAM
products during the quarter, which caused our revenue growth rate to
fall below our expectations. Although the delay was disappointing, new
etch product positions, and our strip systems' strong foundry presence,
drove the overall business in the fourth quarter." Dutton concluded, "In
2010, revenue grew 225 percent over 2009, and momentum continues to
build. Based in part on our new product positions, we expect to outgrow
the industry in 2011."

Fourth Quarter 2010 Financial Results

Net sales for the fourth quarter were $41.3 million, compared with $39.8
million in the third quarter, and $17.9 million in the fourth quarter of
2009.

Gross margin for the fourth quarter was 30 percent, compared to 37
percent in the third quarter, and 28 percent in the fourth quarter of
2009. Relative to the third quarter, gross margins were negatively
impacted by a change in product mix as several DRAM tools were
rescheduled.

Operating expenses for the fourth quarter were $19.9 million, compared to
$19.5 million in the third quarter and $17.1 million for the fourth
quarter of 2009. Fourth quarter operating expenses increased relative to
the third quarter, as the Company's accounting calendar was comprised of
14 weeks, whereas the prior periods contained 13 weeks.

Net loss for the fourth quarter was $7.9 million, or $0.16 loss per
share, compared with a net loss of $6.4 million, or $0.13 loss per
share, for the third quarter and net loss of $11.4 million or $0.23 loss
per share, for the fourth quarter of 2009.

Cash, cash equivalents, short-term investments and restricted cash at the
end of the fourth quarter were $23.0 million, compared with $45.3 million
at the end of the third quarter, and $60.4 million at the end of 2009.
The cash reduction from the third quarter was due to increases in
working capital accounts. Inventory increased $7 million
quarter-over-quarter, and accounts receivable and advanced billings
increased by $10 million.

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

Conference Call

On Wednesday, February 2, 2011, at 2:00 PM Pacific Time (5:00 PM Eastern
Time), Mattson Technology will hold a conference call to review the
following topics: 2010 fourth quarter and fiscal year financial results,
current business conditions, the near-term business outlook and guidance
for the first quarter of 2011. 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 (970) 315-0417.

Mattson also will 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. 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: Company
expectations with respect to continued growth of its business; 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 cash
position overall, especially as a result of payments made for inventory
and the related collections upon shipment of such inventory; end-user
demand for semiconductors; customer demand for semiconductor
manufacturing equipment; the Company's ability to timely manufacture,
deliver and support ordered products; the Company's ability to bring new
products to market, to gain market share with such products and the
overall mix of the Company's 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. 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, and operate
in three primary product sectors: dry strip, rapid thermal processing
and etch. 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 Year Ended
------------------------ ------------------------
December 31, December 31, December 31, December 31,
2010 2009 2010 2009
----------- ----------- ----------- -----------
Net sales $ 41,259 $ 17,921 $ 138,336 $ 42,748
Cost of sales 28,922 12,957 93,797 44,843
----------- ----------- ----------- -----------
Gross profit (loss) 12,337 4,964 44,539 (2,095)
----------- ----------- ----------- -----------
Operating expenses:
Research, development
and engineering 7,391 6,062 27,791 25,340
Selling, general and
administrative 12,576 11,010 50,057 46,980
Restructuring charges (50) 40 (114) 2,596
----------- ----------- ----------- -----------
Total operating
expenses 19,917 17,112 77,734 74,916
----------- ----------- ----------- -----------
Loss from operations (7,580) (12,148) (33,195) (77,011)
Interest and other
income (expense), net (343) 698 113 1,903
----------- ----------- ----------- -----------
Loss before income taxes (7,923) (11,450) (33,082) (75,108)
Provision for (benefit
from) income taxes (22) (89) 321 (8,066)
----------- ----------- ----------- -----------
Net loss $ (7,901) $ (11,361) $ (33,403) $ (67,042)
=========== =========== =========== ===========
Net loss per share:
Basic and Diluted $ (0.16) $ (0.23) $ (0.67) $ (1.35)
Shares used in computing
net loss per share:
Basic and Diluted 50,153 49,938 50,073 49,832

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

December 31, December 31,
2010 2009
(unaudited) (1)
----------- -----------
ASSETS
Current assets:
Cash, cash equivalents and short-term
investments $ 19,014 $ 58,435
Restricted cash 4,026 2,000
Accounts receivable, net 24,127 10,420
Advance billings 3,177 905
Inventories 34,673 25,804
Prepaid expenses and other assets 5,770 5,848
----------- -----------
Total current assets 90,787 103,412
Property and equipment, net 15,011 21,643
Other assets 5,826 8,018
----------- -----------
Total assets $ 111,624 $ 133,073
=========== ===========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 20,860 $ 7,514
Accrued liabilities 13,452 18,293
Deferred revenue 5,349 2,150
----------- -----------
Total current liabilities 39,661 27,957
Income taxes payable, non-current 4,287 4,458
Other liabilities 5,021 5,952
----------- -----------
Total liabilities 48,969 38,367
----------- -----------
Stockholders' equity:
Common stock 54 54
Additional paid-in capital 634,944 631,785
Accumulated other comprehensive income 20,207 22,014
Treasury stock (37,986) (37,986)
Accumulated deficit (554,564) (521,161)
----------- -----------
Total stockholders' equity 62,655 94,706
----------- -----------
Total liabilities and stockholders'
equity $ 111,624 $ 133,073
=========== ===========

(1) Derived from audited financial statements

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

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

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