FREMONT, Calif.- February 13, 2003 - Mattson Technology, Inc. (NASDAQ: MTSN), a leading supplier of advanced process equipment used to manufacture semiconductors, today is reporting financial results for the fourth quarter and year ended December 31, 2002.

Highlights of this report include:

Net loss for the year decreased 72 percent over 2001, the result of significant actions taken to restructure to current business conditions and focus the company’s business on the most valuable and growing components of its core technologies. The Company’s cash position is $89.0 million at year end. With a significantly reduced cash burn, the Company is closer to achieving a cash positive performance.
Today, the Company announced the sale of its Wet Products division, completing the last major action necessary to complete its strategic restructuring plan.

" We have concentrated during the past year on sharpening our strategic focus on our core technologies and restructuring our company to operate successfully in a dynamic market environment," said David L. Dutton, president and chief executive officer of Mattson Technology. "The divestiture of our wet operations allows us to concentrate our attention and resources on our core strengths and enhances our balance sheet position. Our next goal is to drive our core products to strong segment leadership, while improving operational effectiveness. In 2003, we expect to establish an operating profile that will enhance our ability to create meaningful, sustainable growth for our shareholders."

Net sales for the quarter were $49.2 million, a decrease of $11.6 million or 19 percent from $60.8 million in the third quarter of 2002, and an increase of $0.5 million or 1 percent from the fourth quarter of 2001 net sales of $48.7 million. Shipments for the quarter were $40.5 million, a decrease of $17.3 million or 30 percent from $57.8 million in the third quarter of 2002, and a decrease of $9.0 million or 18 percent from the fourth quarter of 2001 shipments of $49.5 million. Revenues for the quarter included $3.3 million of royalty income related to the settlement of the patent infringement suit with Dainippon Screen Manufacturing Co., Ltd. (DNS).

Net loss for the fourth quarter of 2002 was $31.9 million, or $(0.71) per share, compared to a net loss of $12.0 million, or $(0.27) per share for the third quarter of 2002, and a net loss of $67.1 million, or $(1.81) per share, for the fourth quarter of 2001. Results for the fourth quarter of 2002 included an $11.1 million restructuring charge related to a reduction in force, the reorganization of EPI operations, fixed asset write offs and impairment of long-lived assets related to the Wet Division.

Net bookings for the fourth quarter of 2002 were $44.2 million, down compared to net bookings in the third quarter of 2002 of $51.1 million, and an increase from net bookings of $19.7 million in the fourth quarter of 2001. Net bookings in the fourth quarter of 2002 resulted in a book-to-bill ratio of 1.1 to 1.0.

Net sales for the year were $203.5 million, a decrease of 12 percent from fiscal year 2001 net sales of $230.1 million. Shipments for the year were $174.6 million, compared to shipments of $325.8 million in 2001.

Net loss for the year was $94.3 million or $(2.23) per share, compared to the fiscal year 2001 net loss of $336.7 million or $(9.14) per share. Net loss for the year 2002 includes restructuring charges of $17.3 million.

Gross margin for the fourth quarter of 2002 was 20.5 percent, a decrease of approximately 2 percentage points from 22.2 percent for the third quarter of 2002, and an increase from negative 26.5 percent gross margin for the fourth quarter of 2001.

Deferred revenue at the end of the fourth quarter of 2002 was $108.7 million, which relates to tools shipped and awaiting customer acceptance. The $108.7 million is a decrease of $5.6 million from $114.3 million at the end of the third quarter of 2002, and a decrease of $27.9 million from $136.6 million at December 31, 2001.

The company ended the year with cash and cash equivalents, restricted cash and investments of $89.0 million, an increase of $11.9 million from $77.1 million as of the quarter ended September 30, 2002. Working capital decreased to $62.1 million as of December 31, 2002 from the $82.2 million as of September 30, 2002.

Ludger Viefhues, chief financial officer said, "With $89.0 million in cash at the end of 2002 and essentially no debt, our financial position is strong. With our restructuring actions in place, we anticipate moving toward cash positive operations in 2003. "

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

At 2:00 PM (Pacific Time) today, Wednesday, February 12, 2003, Mattson will hold a conference call to review the following topics: fourth quarter and 2002 financial results, current business conditions, and the near-term business outlook. The conference call will be webcast via the Internet (www.mattson.com, under "Investor Line"), beginning at 2:00 pm Pacific Time, February 12, 2003. In addition to the live webcast, a replay will be available to the public on the Mattson website for one-week following the live broadcast.

This press release contains forward looking statements regarding, among other matters, the Company's future prospects and near-term outlook 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 materially. In addition to the general risks associated with the slowdown in the semiconductor industry and development of complex technology, our future results will depend on a variety of factors, including the timing of significant orders, our ability to timely manufacture and deliver ordered products, our ability to bring new systems to market, the timing of new product releases by our competitors, our ability to reduce cost in response to market conditions, and other competitive factors. 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. The Company assumes no obligation to update the information in this press release.

Mattson Technology, Inc. is a leading supplier of semiconductor wafer processing equipment used in "front-end" fabrication of integrated circuits. The company is a leader in dry strip, RTP and wet processing equipment markets 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., 2800 Bayview Drive, Fremont, Calif. 94538. Telephone: (800) MATTSON/(510) 657-5900. Fax: (510) 226-8241. Internet: www.mattson.com.

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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.