For more information, contact:

Richard Beck Advanced Energy Industries 970/407-6204

Catherine Kawakami Advanced Energy Industries 970/407-6732

FORT COLLINS, CO, December 22, 1998 --Advanced Energy Industries, Inc. (Nasdaq:AEIS) today opened a new sales and service office outside Seoul, Korea. AE Korea will provide direct sales, service and application engineering support to the non-semiconductor and semiconductor markets of Korea. The office will support sales of all AE product divisions, and service most all of the existing products from AE and RF Power Products (RFPP), an AE subsidiary.

Joseph Monkowski, Senior Vice President of Sales and Marketing of Advanced Energy, said, “Emerging non-semiconductor applications in the Korean market was one of the deciding factors in turning our presence in Korea from a distributor relationship to a direct sales and service office. A direct presence allows us to offer application engineering capabilities for new technologies that Korean manufacturers are developing. We are particularly targeting emerging industrial applications as one of the stronger future growth areas in Korea.”

Advanced Energy ended its 10-year relationship with its Korean distributor, Zeus & Co., and with ISTC, RFPP’s distributor, in a positive manner. Some Zeus and ISTC employees have joined the AE Korea staff. SW Kim, formerly with RFPP, has been named Country Manager of the new AE office. Mr. Kim has extensive experience in the markets AE Korea will serve, having worked for Applied Komatsu Technology Korea and Varian Korea prior to joining RFPP as Country Manager.

Safe Harbor Statement
Except for any historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties, including the achievement of goals established by the Company to improve gross margin and maintain operating expenses in line with revenue, continued sales growth in non-semiconductor areas, and other risks detailed from time to time in the Company’s Securities and Exchange Commission reports, including the Company’s recent Prospectus, Form 10-K and Forms 10-Q. The Company continues to be susceptible to fluctuations in quarterly and annual revenues and operating results. The Company assumes no obligation to update the information in this release.

About the Company
Advanced Energy Industries, Inc. was founded in 1981 and is the leading manufacturer of power delivery systems that are critical in the manufacturing of semiconductors, data storage media, flat panel displays, and other products using thin-film technology. Within its comprehensive product portfolio of direct current (DC), low/mid-frequency and radio frequency (RF) solutions, the Company sells hundreds of different products critical in applications ranging from compact disks, digital video disks, flat panel displays, the most popular logic semiconductor devices, among many other applications. Advanced Energy’s stock is traded on Nasdaq under the symbol AEIS.