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The software licensed by Advanced Energy under the agreement will provide network communications for process control, and is currently targeted for use with Advanced Energy's power delivery and instrumentation products sold into the semiconductor equipment industry. The software under license will extend the application of Advanced Energy's Fourth State Technology process monitoring instrumentation and provide advanced process control capability. The new functionality will include external data access for remote system diagnostics and monitoring over the Internet. In addition, the license includes internal server software that can be used to upgrade an end-user's internal system or sub-system.

"This agreement is a further step in achieving our goal of becoming a broad supplier of products and services to the semiconductor equipment industry", said Doug Schatz, CEO of Advanced Energy. "The acquisition of Fourth State Technology in 1998 provided us with technology and a core team to build on our Z-Scan monitoring system used in plasma processing. This agreement expands our offering and gives a valuable tool to our customers to maximize their productivity and process capability."

In addition, the license agreement includes sophisticated, real-time database capability and a suite of vertical applications for equipment health monitoring, data analysis, and related functionality.

The license agreement with Symphony Systems is consistent with Advanced Energy's strategy of acquiring technologies and companies as strategic opportunities develop, and consistent with Advanced Energy's customers' requirements for working with supplier partners who are able to deliver a broad array of solutions. Customers are interested in supporting software, and interfaces to other applications, in order to have more data about their operations, and to increase their ability to manage their operations.

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 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 Form 10-K and Forms 10-Q. The Company continues to be susceptible to fluctuations in quarterly and annual revenues and operating results and the volatility of the semiconductor and semiconductor capital equipment industries. The Company assumes no obligation to update the information in this release.

About Advanced Energy
Advanced Energy is a worldwide leader in the development and marketing of power conversion and control system solutions, ion-beam sources, and plasma abatement systems. Customers throughout the world use Advanced Energy's products where plasma-based thin film technology is a critical function in their manufacturing process. These applications include the manufacture of semiconductors, CD-ROMs, DVDs, compact disks, flat panel displays, disk drives, and optical and architectural glass. In addition, Advanced Energy provides the power conversion and control system solutions of choice to a growing number of general applications in the medical, instrumentation, telecommunications, automotive, and tool industries. Founded in 1981, AE is a publicly held company traded on Nasdaq under the symbol AEIS.