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

Fort Collins, Colorado (August 13, 2001)—Advanced Energy (Nasdaq: AEIS), an industry-leading provider of critical technology solutions for the manufacture of semiconductors, data storage products, and flat panel displays, today announced that it has entered into an agreement to license its New Power Supply Architecture (NPSA) high frequency power conversion technology to a leading North American microprocessor manufacturer.

Joseph Chang, director of sales and marketing for Advanced Energy’s NPSA products, said, “We are pleased to announce a new licensee of AE’s high frequency power conversion products, because it represents a very significant step in the promotion and validation of this technology. The agreement enables AE’s high frequency power conversion technology to be used in desktop, workstation, and server systems that will be marketed and distributed by our licensing partner to a worldwide customer base.

“As processor speeds increase, you need DC/DC converters that are capable of low voltage, high current, fast transient response, and low ripple output. All of these have to be done in a very limited space, and cost effectively. AE's NPSA technology not only can provide the performance requirements to meet these challenges but also offers significant benefits including cost advantages, more efficient utilization of space, quality and reliability to high-end microprocessors,” said Mr. Chang.

AE developed its NPSA product line in 1999 to market high frequency and high density DC/DC-converters that utilizes the AE high switching frequency technologies in the computing, data-communications, telecommunications, and ATE markets. This technology allows AE’s products to switch at 10x the frequency offered by conventional technologies in the marketplace. At the same time, it offers a cost effective solution to the end users. Advanced Energy will receive royalties based on the sale of products that use its NPSA technology. The licensing agreement remains effective through June 2008.

About Advanced Energy
Advanced Energy is a global leader in the development, marketing, and support of technology solutions that are central in the manufacture of semiconductors, data storage products, and flat panel displays. Original equipment manufacturers (OEMs) and end-users around the world depend on AE products when plasma-based technology plays a vital role in their manufacturing process. AE offers a comprehensive suite of products for vacuum process systems, including power management, temperature sensing, dynamic temperature control, gas delivery management, process monitoring and machine control tools, ion-beam sources, and plasma abatement technologies. AE technology solutions are sold and supported globally by direct offices, representatives, and distributors. Founded in 1981, AE is a publicly held company traded on Nasdaq under the symbol AEIS. AE’s URL is www.advanced-energy.com

Safe Harbor Statement
This press release contains certain forward-looking statements subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to: fluctuations in quarterly and annual revenues and operating results, Advanced Energy’s ongoing ability to develop new products in a highly competitive industry characterized by increasingly rapid technological changes, the volatility and cyclicality of the semiconductor and semiconductor capital equipment industries and other risks described in Advanced Energy’s 10-K, Forms 10-Q and other reports and statements, as filed with the Securities and Exchange Commission. The company assumes no obligation to update the information in this press release.