For more information, contact:

Richard Beck
Advanced Energy Industries, Inc.
970.407.6204
dick.beck@aei.com
Cathy Kawakami
Advanced Energy Industries, Inc.
970.407.6732
cathy.kawakami@aei.com

Advanced Energy Posts Record Quarterly Revenue and Earnings
Fort Collins, Colorado (July 17, 2000)-Advanced Energy (Nasdaq: AEIS) today reported record financial results for the second quarter and six-month period ended June 30, 2000. Advanced Energy is an industry-leading provider of critical technology solutions for the manufacture of semiconductors, data storage products, and flat panel displays. For the second quarter, revenues were $80.6 million, up 86 percent from $43.3 million for the second quarter of 1999 and up 15 percent from $70.3 million for the first quarter of 2000. The company's prior quarter and 1999 results have been restated to reflect the second quarter acquisition of Noah Holdings, using the pooling of interests method of accounting.

"We are seeing continued strength in demand from the semiconductor capital equipment sector, which was a contributing factor in the achievement of our sixth consecutive quarter of increasing revenues and earnings," said Doug Schatz, Chairman and Chief Executive Officer. "The company is poised for continued growth as we further integrate our product offering to best address customer needs and capture new market share opportunities."

Net income for the 2000 second quarter grew to $12.0 million, or $0.40 per diluted share, after considering non-recurring charges of $2.3 million associated with the acquisition of Noah Holdings, completed on April 6, 2000. Pro forma net income for the second quarter of 2000, excluding the non-recurring charges associated with the Noah Holdings acquisition, was $14.4 million, or $0.47 per diluted share. This compares to net income of $2.8 million or $0.10 per diluted share for the second quarter of 1999. This also compares favorably with net income of $10.0 million, or $0.33 per diluted share, for the first quarter of 2000.

"Our gross margin for the quarter expanded to 48.8 percent, continuing our trend of cost containment and cost reduction," said Mr. Schatz.

For the first six months of 2000, revenues were $150.8 million compared with $77.2 million for the first six months of 1999. Gross profit for the 2000 six-month period was $73.0 million, or 48.4 percent, an improvement compared with $32.6 million or 42.3 percent for the 1999 period.

Net income for the 2000 six-month period was $22.1 million, or $0.73 per diluted share, compared with $3.3 million, or $0.12 per diluted share, for the six-month period ended June 30, 1999. Pro forma net income for the 2000 six-month period was $24.4 million, or $0.80 per diluted share, and does not include the non-recurring charge of $2.3 million associated with the second quarter acquisition.

The company announced on July 6, 2000 its intent to acquire Engineering Measurements Company (EMCO) in a stock transaction that is anticipated to close during the fourth quarter of 2000 after an EMCO shareholder meeting. EMCO provides flow measurement and control solutions, which are designed to improve yield and reliability in the manufacture of semiconductor devices.

"Our pending acquisition of EMCO, and important strategic partnerships with companies such as Berkeley Process Control and network-based software provider, Symphony Systems, are integral to our vision of providing complete sub-systems and electronic controls for our OEM customers," said Mr. Schatz. "We believe our customers endorse and support our integration strategy, as we work closely with them to deliver value through technical innovation and integration. We anticipate that these strong relationships and expanded product offering will lead to increased market share opportunities and solid execution of our long-term strategy for growth."

The company also announced today that it will be consolidating its Tower Electronics facility, located in Fridley, Minnesota, into the Company's existing facility in Voorhees, New Jersey. The company anticipates one-time charges of less than $1 million related to the consolidation in the third and fourth quarters, and expects the move to be completed during the fourth quarter of this year.