Mattson Technology, Inc. Reports Results for the First Quarter 2011

FREMONT, CA, Apr 27 (MARKET WIRE) --
Mattson Technology, Inc. (NASDAQ: MTSN), a leading supplier of advanced
process equipment used to manufacture semiconductors, today announced
results for the fiscal 2011 first quarter, ended April 3, 2011.

First Quarter 2011 Business Highlights:

-- First quarter 2011 revenue of $47.0 million increased 14 percent as
compared with fourth quarter 2010, marking Mattson Technology's eighth
consecutive quarter of revenue growth.

-- First quarter loss from operations excluding interest and other income
and expenses and tax benefit adjustments was $5.1 million, an
improvement of $2.5 million over results for the fourth quarter of
2010.

-- Mattson booked and shipped the largest paradigmE(R) etch order in
the Company's history, placed by a leading semiconductor manufacturer
for volume manufacturing of advanced etch applications.

David L. Dutton, Mattson Technology's president and chief executive
officer, noted, "Mattson Technology delivered its 8th consecutive quarter
of revenue growth with a 14 percent improvement over the fourth quarter
of 2010. This growth was driven by a record order and shipment of our
paradigmE etch system, which is now in volume production for DRAM and
NAND fabs, and strength from our foundry strip business. In the quarter,
we introduced the next-generation SUPREMA XP5 strip system, which
delivers up to a 50 percent higher throughput than its predecessor,
further extending our strip leadership.

"We are now solidly established in three diverse markets, with a
significantly larger served available market as compared with that of the
previous cycle. Our new positions in these markets, combined with the
expected new fab expansions -- the first real expansions since 2007 --
set the groundwork for a newly defined Mattson Technology." Dutton
concluded, "We have furthered our technology leadership and are well
positioned to continue to outpace the industry's growth in 2011."

First Quarter 2011 Financial Results
First quarter net sales of $47.0
million increased 14 percent compared with $41.3 million in the fourth
quarter of 2010, and 87 percent, compared with $25.2 million in the first
quarter of 2010. Gross margin for the first quarter was 30 percent,
consistent with gross margin reported in both the fourth quarter of 2010
and the first quarter of 2010. Operating expenses for the first quarter
of $19.0 million declined approximately five percent compared with $19.9
million in the fourth quarter of 2010.

Interest and other expense, net, for the first quarter was an unfavorable
$1.5 million, primarily a result of currency adjustments to certain
accounts pertaining to the strengthening of the Euro in Mattson
Technology's European operations. This result was slightly offset by a
benefit from income taxes of $0.3 million, due to a release of reserves
in one of the Company's foreign subsidiaries.

Net loss for the first quarter was $6.3 million, or $0.12 loss per share,
compared with a net loss of $7.9 million, or $0.16 loss per share, for
the fourth quarter of 2010, and a net loss of $10.8 million, or $0.22
loss per share, for the first quarter of 2010.

Cash, cash equivalents, short-term investments and restricted cash at the
end of the first quarter were $24.4 million, compared with $23 million at
the end of the fourth quarter of 2010.

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

Conference Call
On Wednesday, April 27, 2011, at 2:30 PM Pacific Time
(5:30 PM Eastern Time), Mattson Technology will hold a conference call to
review the following topics: 2011 first quarter financial results,
current business conditions, the near-term business outlook and guidance
for the second 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;
growth of the industry and the size of the Company's served available
market; 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, including the growing
mobility electronics industry; customer demand for semiconductor
manufacturing equipment, including as a result of Greenfield fab plans;
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
---------------------------------------
April 3, December 31, March 28,
2011 2010 2010
----------- ------------- -----------

Net sales $ 47,049 $ 41,259 $ 25,195
Cost of sales 33,105 28,922 17,433
----------- ------------- -----------
Gross profit 13,944 12,337 7,762
----------- ------------- -----------
Operating expenses:
Research, development and
engineering 6,515 7,391 6,406
Selling, general and
administrative 12,575 12,576 12,373
Restructuring charges (65) (50) 16
----------- ------------- -----------
Total operating expenses 19,025 19,917 18,795
----------- ------------- -----------
Loss from operations (5,081) (7,580) (11,033)
Interest and other income (expense),
net (1,527) (343) 456
----------- ------------- -----------
Loss before income taxes (6,608) (7,923) (10,577)
Provision for (benefit from) income
taxes (334) (22) 179
----------- ------------- -----------
Net loss $ (6,274) $ (7,901) $ (10,756)
=========== ============= ===========
Net loss per share:
Basic and Diluted $ (0.12) $ (0.16) $ (0.22)
Shares used in computing net loss
per share:
Basic and Diluted 50,287 50,153 49,984

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

April 3, December 31,
2011 2010
(unaudited) (1)
---------------- ----------------

ASSETS

Current assets:
Cash, cash equivalents and short-
term investments $ 20,405 $ 19,014
Restricted cash 4,028 4,026
Accounts receivable, net 18,039 24,127
Advance billings 4,810 3,177
Inventories 34,201 34,673
Prepaid expenses and other assets 4,701 5,770
---------------- ----------------
Total current assets 86,184 90,787
Property and equipment, net 13,798 15,011
Other assets 5,700 5,826
---------------- ----------------
Total assets $ 105,682 $ 111,624
================ ================

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 14,909 $ 20,860
Accrued liabilities 16,051 13,452
Deferred revenue 6,746 5,349
---------------- ----------------
Total current liabilities 37,706 39,661

Income taxes payable, non-current 4,028 4,287
Other liabilities 4,987 5,021
---------------- ----------------
Total liabilities 46,721 48,969
---------------- ----------------

Stockholders' equity:
Common stock 54 54
Additional paid-in capital 635,694 634,944
Accumulated other comprehensive
income 22,037 20,207
Treasury stock (37,986) (37,986)
Accumulated deficit (560,838) (554,564)
---------------- ----------------
Total stockholders' equity 58,961 62,655
---------------- ----------------
Total liabilities and
stockholders' equity $ 105,682 $ 111,624
================ ================

(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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