Mattson Technology, Inc. and Mesocoat, Inc. Announce Exclusive Supply Agreement

FREMONT, CA and EUCLID, OH, May 11 (MARKET WIRE) --
Mattson Technology, Inc. (NASDAQ: MTSN) and MesoCoat, Inc., a subsidiary
of Abakan, Inc., today announced that the two companies have agreed to an
Exclusive Supply Agreement that grants MesoCoat access to Mattson's
ultra-high-intensity Vortek(R) arc lamp system. MesoCoat will use the
lamps, which generate an extremely high intensity of focused light, in
the production of its high-performance nanocomposite cladding solutions
for an estimated $3.8 billion(1) worldwide metal cladding market.

"The use of Mattson's leading arc lamp technology is an important
component in differentiating MesoCoat's proprietary and patented
processes from competitors," said MesoCoat CEO Andy Sherman. "Securing
the commitment and support of Mattson Technology's engineering and design
team will speed the commercial introduction of our CermaClad(TM) high
performance claddings."

The multi-year agreement contemplates that MesoCoat will annually
purchase an escalating minimum number of Vortek arc lamps. The aggregate
value of the purchases has the potential to exceed tens of millions of
dollars over the term of the agreement, and includes a $2 million
exclusivity fee. The agreement guarantees MesoCoat supply, technical and
design support, and delivery schedules for the Vortek arc lamps for its
cladding equipment and operations.

"We are extremely pleased to be working with MesoCoat on this new,
innovative coating solution, which represents a paradigm shift that
brings high speed, performance and economy to such large critical
markets," said David Dutton, CEO of Mattson Technology. "Our Vortek arc
lamp is one of the most powerful light sources in the world that has
shown potential to enable greater efficiency in many emerging thermal
process applications in the clean energy field. Our partnership with
MesoCoat opens up a new opportunity in the energy market, which extends
our business beyond our existing semiconductor equipment industry."

The Mattson Technology Vortek arc lamp integrated with MesoCoat's
award-winning CermaClad process will allow continuous coating and
cladding of layers of corrosion- and wear-resistant materials 20 to 30
centimeters (cm) wide, compared to widths of approximately 0.5 cm for
lasers used in competing weld or laser cladding processes. This
high-speed cladding process that is up to 100 times faster than current
methods enables better metallurgical properties even at lower coating
thicknesses. The speed of this technology ensures that the cladding
process can now match the line speed of steel mills, dramatically
reducing lead times by 75-80%(2). MesoCoat estimates that this technology
will enable the cladding market to double over the next three years to
more than $7 billion.

(1)MesoCoat Estimate
(2)MesoCoat Estimate

About MesoCoat, Inc.:
MesoCoat is a venture-backed nanotechnology
materials science company in metal protection and repair utilizing their
revolutionary "long life" coating and "high speed" cladding technologies.
Through Partnerships with the Departments of Defense and Energy, and
leading Oil and Gas companies, MesoCoat has developed high strength, high
toughness ceramic-metallic materials and high speed fusion cladding
processes providing unparalleled wear and corrosion resistance; and has
verified performance, productivity, and cost benefits with industry
leaders in Oil & Gas, Aerospace, Energy Generation, and Maritime
industries. MesoCoat is now commercializing several of their products and
services that are a direct replacement for hard chrome plating, as well
as weld cladding processes to address the needs of both Original
Equipment Manufacturers (OEM) and Maintenance and Repair Organizations
(MRO).

About Mattson Technology, Inc.:
Mattson Technology, Inc. designs,
manufactures and markets semiconductor wafer processing equipment used in
the fabrication of integrated circuits. The company is a leading supplier
of plasma and rapid thermal processing equipment to the global
semiconductor industry, and operates in three primary product sectors:
dry strip, rapid thermal processing (RTP) and etch. Through manufacturing
and design innovation, Mattson Technology produces technologically
advanced systems that provide productive and cost-effective solutions for
customers fabricating current- and next-generation semiconductor devices.
The company serves foundries, and memory and logic integrated device
manufacturers in the United States, Europe, China, Japan, Korea,
Singapore, Taiwan and other Asian countries.

Mattson Technology "Safe Harbor" Statement Under the Private Securities
Litigation Reform Act of 1995: This news release contains forward-looking
statements, including statements relating to the potential uses of the
Vortek arc lamp system, the potential benefits of the supply agreement to
both companies, the potential volume and value of sales and availability
of product under the agreement, the size and nature of the potential new
markets for the Vortek arc lamp system and other general market
statements. These 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: unexpected changes in the business relationship
between the companies or in the terms and conditions of their supply
agreement; changes in MesoCoat's business and demand for its products;
changes in the broader markets for the Company's products; 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. The
Company assumes no obligation to update the information provided in this
news release.

Mattson Technology Contact
Lauren Vu
Mattson Technology, Inc.
tel +1-510-492-6250
fax +1-510-492-5930
lauren.vu@mattson.com

MesoCoat Contact
Andy Sherman
MesoCoat, Inc.
tel +1-216-404-0053
asherman@mesocoat.com

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