Fremont, CA, May 20, 1998 - Asyst Technologies, Inc. (Nasdaq:ASYT), the leading supplier of minienvironment and SMIF-based technology to the worldwide semiconductor industry, today reported record financial results for its fourth quarter and fiscal year ended March 31, 1998.

Net sales for fiscal 1998 were $165.5 million, the highest in the Company’s history. This represented a 20.4 percent increase over the $137.5 million posted for the fiscal year ended March 31, 1997. Income from continuing operations was $18.2 million, or $1.51 per share. (All per share figures in this document are stated on a diluted basis.) This compares to income from continuing operations of $11.4 million, or $1.09 per share, for fiscal 1997. Fiscal 1998 net income was $16.4 million, or $1.36 per share, versus the reported loss of ($3.3 million), or ($0.31) per share, for the prior year.

Fourth Quarter Revenues and Earnings Up

For the fourth quarter of fiscal 1998, net sales reached $45.2 million, also a company record. This compared to $34.9 million for the fiscal 1997 fourth quarter. Income from continuing operations for the three months ended March 31, 1998 was $5.3 million, or $0.42 per share, compared to income from continuing operations of $2.8 million, or $0.27 per share, for the comparative period of fiscal 1997. Net income for the three months ended March 31, 1998 was $5.3 million, or $0.42 per share, compared to $2.8 million, or earnings per share of $0.27, for the same period in the prior fiscal year.

Commenting on the results, Asyst’s Chairman and Chief Executive Officer Dr. Mihir Parikh noted, "We are very pleased with our fiscal 1998 performance, which is a confirmation of our continued focus on operational excellence. We grew our revenues and earnings to record levels despite the challenging business conditions posed by the current industry downturn. Given the industry’s lack of near term visibility, we remain cautious and continue to strategically manage our business and assets, while continuing our strong commitment to investing in research and development. A number of factors have continued to drive our success. The most significant is the growing global adoption of SMIF, which has become a manufacturing imperative in today’s highly automated fabs." Dr. Parikh continued, "Another factor is the breadth of our customer base. Our lead position in the growing IC foundry market, strong OEM relationships and retrofit fab opportunities are mitigating the effects that fewer new fab projects appear to be having on many companies within the capital equipment sector."

Doug McCutcheon, Asyst’s senior vice president and chief financial officer, noted, "We are pleased to report record revenues, operating income and earnings per share for the year. During the year, we continued to see improvement in our gross margin, which for the fourth quarter stands at 45.8 percent. In addition, we have maintained a strong cash position due to tightly managed operations and improved profit margins and asset management. Our days sales in receivables continues its downward trend and currently stands at 53 days, and cash, cash equivalents and short term investments at the end of the year were $83 million."

Fourth Quarter and Fiscal 1998 Highlights

During the year, Asyst continued to secure major wins with global IC manufacturers, OEMs and foundries as the value of SMIF technology to manufacturing productivity and integrity is increasingly realized. The fourth quarter marked Asyst’s receipt of a $6 million order from Worldwide Semiconductor Manufacturing Company, extending the Company’s leadership as the sole SMIF provider in the Taiwanese foundry market. Another key win during the fourth quarter was a $9 million order from a Pacific Northwest foundry, which extended Asyst’s U.S. SMIF fab market share position. Reflecting the Company’s strong OEM relationships, a leading capital equipment manufacturer qualified Asyst as an approved supplier of SMIF systems. The Company initiated a strategic acquisition of Fluoroware, Inc.’s FluoroTrac® RF-based lot tracking system to expand Asyst’s comprehensive Auto ID product offering. Additionally, Asyst enhanced both its 200 mm and 300 mm product lines, which included the introduction of its new 300 mm front opening pod at SEMICON Europa in April.

Except for statements of historical fact, the statements in this press release are forward-looking. Such statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. These factors include, but are not limited to, general economic conditions, semiconductor industry cycles, risks associated with the acceptance of new products and product capabilities, and other factors more fully detailed in the Company’s most recent Forms 10-K annual report and 10-Q quarterly report on file with the SEC.

About Asyst
The pioneer of the Standard Mechanical InterFace (SMIF), Asyst Technologies, Inc. is the leading provider of automated material handling systems, software and integration services critical to seamless fab automation worldwide. Hine Design Incorporated, a wholly owned subsidiary, designs and manufactures precision substrate handling equipment for vacuum, atmospheric and corrosive environments.

Condensed Consolidated Statements of Operations
Condensed Consolidated Balance Sheets

	Three Months Ended				Twelve Months Ended
	March 31		March 31		March 31		March 31
	1998		1997		1998		1997
	(unaudited)
Net sales	$ 45,155		$ 34,855		$165,463 120,308		$137,520 102,665
Cost of sales	24,461		19,869		91,737		80,732
Gross margin	20,694		14,986		73,726		56,788
Operating expenses:
Research and Development	3,902		2,453		13,290		8,629
General, Selling & Administrative	8,503		8,264		34,098		28,914
In-process Research and Development of
acquired business business	0 -		0		0		1,335
Total operating expenses	12,405		10,717		47,388		38,878
Operating income	8,289		4,269		26,338		17,910
Other income, net	67		166		2,157		671
Income from continuing operations
before income taxes	8,356		4,435		28,495		18,581
Provision for income taxes	3,008		1,600		10,258		7,173
Income from continuing operations	5,348		2,835		18,237		11,408
Discontinued Operations:
Loss from operations of Asyst Automation, Inc.,
net of applicable income taxes	0		0		0		(6,092)
Loss on closure of Asyst Automation, Inc.,
net of applicable income taxes	0		0		(1,840)		(8,573)
Net income / (loss)	$ 5,348		$ 2,835		$ 16,397		$ (3,257)
Weighted average of common and common
share equivalents used for the calculation of:
Basic earnings per share	12,047		10,368		11,359		10,287
Diluted earnings per share	12,759		10,519		12,101		10,512
Basic Earnings / (Loss) Per Share:
Income per share from continuing operations	$ 0.44		$ 0.27		$ 1.61		$ 1.11
Net income / (loss) per common share	$ 0.44		$ 0.27		$ 1.44		$ (0.32) (1.12)
Diluted Earnings / (Loss) Per Share:
Income per share from continuing operations	$ 0.42		$ 0.27		$ 1.51		$ 1.09
Net income / (loss) per common share	$ 0.42		$ 0.27		$ 1.36		$ (0.31) (1.12)

	March 31, 1998		March 31, 1997
ASSETS
Current assets:
Cash and cash equivalents	$ 12,288		$ 11,021
Short-term investments	70,487		1,000
Accounts receivable, net	26,534		35,259
Inventories	18,851		18,609
Prepaid expenses and other current assets	11,938		12,626
Net current assets of discontinued operations	1,438		2,749
Total current assets	141,536		81,264
Property and equipment, net	11,133		10,363
Other assets, net	1,802		2,452
	$ 154,471		$ 94,079
Liabilities and Shareholders’ equity
Current liabilities:
Accounts payable	$ 8,671		$ 13,392
Accrued liabilities and other current liabilities	13,124		10,205
Customer deposits	1,267		2,968
Income taxes payable	606		2,510
Total current liabilities	23,668		29,075
Shareholders’ equity:
Common stock	116,347		66,945
Retained earnings (accumulated deficit)	14,456		(1,941)
Total shareholders’ equity	130,803		65,004
	$ 154,471		$ 94,079

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