For more information, contact:

The new facility, scheduled to open the end of May, will initially manufacture two product lines and employ 14 people. Some employees will be transferred from the Company’s Fort Collins, Colorado headquarters. By year’s end, management expects the 7,000 square foot facility to employ 27 people.

Advanced Energy also entered into an agreement to expand its Austin manufacturing capability to 19,000 square feet in new construction during the first quarter of 1999. The expanded, new facility would provide a complete range of DC, RF and mid-frequency power conversion systems and matching networks for use in PVD, CVD and etch applications.

Douglas S. Schatz, CEO of Advanced Energy, said the facility is being designed using lean manufacturing to take advantage of shortened product development and manufacturing cycles. “Lean manufacturing enables us to manufacture products with shorter cycles, which works in concert with our just-in-time delivery schedule that this particular customer prefers. Under JIT, which carries no backlog, product orders are filled immediately, with little delay. Customers have come to depend on our ability to provide the best products in the power conversion market quickly. We look forward to initiating production in Austin and to serving our customer base there.”

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. The Company’s stock is traded on Nasdaq under the symbol AEIS.

For more information, access Advanced Energy’s web site at www.advanced-energy.com or for information via fax, no cost, dial 800-PRO-INFO, code AEIS.