MATTSON TECHNOLOGY ANNOUNCES THIRD QUARTER FINANCIAL RESULTS

FREMONT, Calif. - November 13, 2001 - Mattson Technology (NASDAQ: MTSN), a leading supplier of advanced process equipment used to manufacture semiconductors, today announced that it will revise its previously reported financial results for the third quarter of 2001.

Net sales for the quarter, before the effects of SAB 101, were $67.3 million. This compared to net sales of $58.2 million for the third quarter of 2000, an increase of 16 percent over the prior year, and a decrease of 22 percent from $86.3 million for the second quarter of 2001. Net sales, including the effects of SAB 101 for the third quarter of 2001 were $36.6 million, compared to $48.3 million for the third quarter of the prior year, a decrease of 24 percent, and a decrease of 49 percent from $71.4 million for the second quarter of 2001. All results for 2001 include the operations of STEAG Semiconductor Division (``STEAG'') and CFM Technologies. Inc. (``CFM'') and all results for 2000 are reflective of pre-merger Mattson.

Gross margin for the third quarter of 2001, before the effects of SAB 101, APB 16, impairment charges and current quarter inventory write-down and goodwill and intangible amortization was 24.5 percent. After the effects of SAB 101, APB 16 and goodwill and intangible amortization, gross margin was a negative 54.7 percent as compared to a gross margin of 21.3 percent for the second quarter of 2001. Gross margin decreased primarily due to a non-cash charge in the third quarter of 2001 of $21.3 million for excess inventories. Gross margin continues to be adversely affected by high fixed production costs relative to production and sales volume, and by lower selling prices due to pricing competition.

The Company recorded non-cash charges of $127.7 million, or $3.45 per share, in the third quarter of 2001 to recognize the impairment of goodwill, intangible assets and certain other long-lived assets related to the acquisition of CFM and STEAG. These charges are the result of an analysis, on a cash flow basis, that reflected the deteriorated market conditions in the semiconductor industry in general and the reduced demand specifically for CFM wet products, specifically.

The Company recorded a net loss for the third quarter of 2001 of $14.3 million, or $0.39 per share, excluding the effects of SAB 101, APB 16, impairment charges and current quarter inventory write-down and goodwill and intangible amortization. Including the effects of SAB 101, the Company recorded a net loss for the third quarter of 2001 of $186.9 million or $5.05 per diluted share. This compares to net income of $3.9 million or $0.18 per diluted share, for the third quarter of 2000, and a net loss of $33.1 million or $0.90 per diluted share, for the second quarter of 2001. Deferred revenue at the end of the third quarter was $136.9 million.

Bookings for the third quarter of 2001 were $25.0 million. Bookings decreased 47 percent in the third quarter of 2001, from $45.8 million in the second quarter of 2001, resulting in a book-to-bill ratio of 0.37 to 1.0. Backlog at the end of third quarter of 2001 was $113.5 million.

Cash and cash equivalents, restricted cash and investments increased to over $100 million at September 30, 2001 from $87 million at July 1, 2001. Working capital decreased to $120 million at September 30, 2001 from $174 million at July 1, 2001. As part of its efforts to strengthen its financial position, the Company has renegotiated the terms of its notes payable of approximately $45 million to STEAG SES AG, a stockholder. The obligations, previously payable on July 2, 2001, are now payable on July 2, 2002.

David Dutton, acting chief executive officer, stated, ``This quarter, we analyzed our assets and wrote-down the value of goodwill and intangible assets associated with our merger with STEAG and CFM at the beginning of this year. We have also taken a reserve against our inventories that we believe to be excess due to deteriorating business conditions.''

Dutton continued, ``Meanwhile, we are positioning our products for advanced demands. Our key technology investments have resulted in market-ready products for low K, copper and 300mm applications. The first of these technologies, our Highlands strip machines, shipped to customers in the U.S. and Asia this quarter.''

Dutton also commented, ``We now have to complete the difficult task of restructuring our operations to fit the level of business we anticipate in 2002. We will need to further reduce our fixed costs of production, which will necessitate another substantial reduction in our workforce in the fourth quarter. Simultaneously, we are taking significant steps to increase customer satisfaction indicators. In the fourth quarter we anticipate a 10% to 20% increase in bookings, but a revenue decrease of approximately 25% from the third quarter of this year.''

Attached to this release are unaudited condensed consolidated statements of operations and balance sheets. The balance sheet continues to reflect a preliminary allocation of the purchase price of STEAG and CFM. There may be changes in the allocation of the purchase price based on the ultimate realization of the assets and liabilities acquired in the acquisition of STEAG and CFM that became effective January 1, 2001.

At 2:30 PM (Pacific Time) Tuesday, November 13th, 2001 Mattson will hold a call to review the following topics: third quarter of 2001 financial results, current business conditions, and the near-term business outlook. The conference call will be publicly available via the Internet beginning with a live webcast at 2:30 PM, Pacific Time (http://www.mattson.com/), November 13, 2001, under ``Investor Line''. In addition to the live webcast, replays will be available to the public on the Mattson website. Users can access the replay one hour after the call.

This press release contains forward looking statements regarding, among other matters, the Company's future prospects and near-term outlook, the effects of our restructuring and cost reduction programs, allocation of the purchase price of STEAG and CFM, and customer demand and the effect of the economic downturn. Forward looking statements address matters that are subject to a number of risks and uncertainties that can cause actual results to differ significantly. In addition to the general risks associated with the slowdown in the semiconductor industry, development of complex technology, future results of the Company will depend on a variety of factors, including the timing of significant orders, the ability of the Company to timely manufacture and deliver ordered products, the ability of the Company to bring new systems to market, the timing of new product releases by the Company's competitors, other competitive factors, and risks of integration following the STEAG-CFM acquisitions. Reference is made to the Company's filings with the Securities and Exchange Commission for further discussion of risks and uncertainties regarding the Company's business.

About Mattson Technology, Inc.

Mattson Technology, Inc. is a leading supplier of semiconductor wafer processing equipment used in "front-end" fabrication of integrated circuits. The company is a market leader in dry strip and RTP equipment, and its products combine advanced process technology on high-productivity platforms backed by industry-leading support. Since beginning operations in 1989, the company’s core vision has been to help bring technology leadership and productivity gains to semiconductor manufacturers worldwide. Headquartered in Fremont, Calif., the company maintains sales and support centers throughout the United States, Europe and Asia. For more information, please contact Mattson Technology, Inc., 47131 Bayside Parkway, Fremont, Calif. 94538. Telephone: (800) MATTSON/(510) 657-5900. Fax: (510) 492-5911. Internet: www.mattson.com.