For more information, contact:

Mike El-Hillow
Advanced Energy Industries, Inc.
970.407.6570
mike.el-hillow@aei.com
Cathy Kawakami
Advanced Energy Industries, Inc.
970.407.6732
cathy.kawakami@aei.com

Advanced Energy Reports Fourth Quarter and Full-Year 2001 Results
Fort Collins, Colorado (February 13, 2001)—Advanced Energy (Nasdaq: AEIS) today reported financial results for the fourth quarter and full-year ended December 31, 2001. Advanced Energy is a leading global provider of critical components and sub-systems used in the production of semiconductors, flat panel displays, data storage products and other advanced applications.

Fourth Quarter Review

For the 2001 fourth quarter, revenues were $34.0 million, down 67 percent from $102.7 million for the fourth quarter of 2000, and down 12 percent from $38.7 million for the third quarter of 2001.

Net loss for the fourth quarter 2001 was $14.4 million, or $0.45 per share compared to fourth quarter 2000 net income of $27.4 million, or $0.83 per diluted share. This compares to the third quarter 2001 net loss of $7.5 million, or $0.24 per share. Pro forma net loss from operations for the fourth quarter of 2001 was $9.4 million, or $0.29 per share, excluding a $2.5 million restructuring charge related to October 2001 cost containment initiatives and a $5.6 million charge related to a technology investment.

Doug Schatz, chairman and chief executive officer, said, “Despite the continuation of a challenging industry environment, fourth quarter revenue came in slightly above our expected range. We believe there is some stabilization in our end markets, as evidenced by the decrease in customer order cancellations and push-outs we experienced earlier in the quarter.”

Full Year Review

For the full year 2001, revenues were $193.6 million compared with $359.8 million for the full year 2000, a decrease of 46 percent. Gross profit for the full year 2001 was $57.4 million, or 30.0 percent, compared with $176.5 million or 49.0 percent for the full year 2000. Net loss for the full year 2001 was $31.4 million or $0.99 per share, compared to net income of $68.0 million or $2.10 per diluted share for the full year 2000.

“Advanced Energy is well-positioned for an industry recovery based on our continued technology lead and our strong presence on new 300mm, copper and low-k dielectric processing tools. Our recent acquisition of Aera Japan Ltd., a world leader in mass flow controllers, expands our global reach, and supports our strategy to provide the critical components and sub-systems that control the plasma manufacturing process,” said Mr. Schatz.

The Company is experiencing a stabilization of orders in the first quarter and expects revenues in the $38 to $40 million range, including Aera.

Fourth Quarter and Year-End Conference Call Management will host a conference call today, Wednesday, February 13, 2002 at 9:00 am Eastern time to discuss the financial results. You may access this conference call by dialing 800-982-3472. For a replay of this teleconference, please call 703-925-2533, passcode 5770769. The replay will be available through Wednesday, February 20, 2002. There will also be a webcast available at www.advanced-energy.com.

About Advanced Energy

Advanced Energy is a global leader in the development, marketing, and support of integrated technology solutions that are central in the manufacture of semiconductors, data storage products, and flat panel displays as well as other mission-critical power applications. AE’s comprehensive suite of custom subsystems for vacuum processing includes power conversion and control solutions, process monitoring and machine control tools, ion-beam sources, dynamic temperature control and measurement products, mass flow systems, and plasma abatement technologies. 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: the volatility and cyclicality of the semiconductor and semiconductor capital equipment industries, 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, our ability to successfully integrate acquired companies' operations, and other risks described in Advanced Energy's Form 10-K, Forms 10-Q and other reports and statements, as filed with the Securities and Exchange Commission. These reports and statements are available on the SEC's website at www.sec.gov . Copies may also be obtained by contacting Advanced Energy's investor relations at 970-407-6732. The company assumes no obligation to update the information in this press release.

    CONDENSED CONSOLIDATED INCOME STATEMENT (UNAUDITED)
(in thousands except per share data)
Quarter Ended December 31,   Year Ended December 31,
2001          2000         2001         2000
Sales                 $33,993      $102,736     $193,600      $359,782
Cost of sales          26,601        52,138      136,168       183,329
Gross profit            7,392        50,598       57,432       176,453
Operating expenses:
Research and
development          10,755        10,668       45,151        36,996
Sales and marketing    5,498         6,629       23,784        24,101
General and
administrative        4,886         6,376       21,522        24,573
Other operating
expenses              5,625            --        6,846            --
Goodwill impairment       --            --        5,446            --
Restructuring charge   2,456            --        3,070         1,000
Litigation recovery       --            --       (1,500)           --
Merger costs              --            --           --         4,583
(Loss) income from
operations           (21,828)       26,925      (46,887)       85,200
Other (expense)
income                (1,487)        1,036       (2,078)        7,485
Net (loss) income
before income taxes,
minority interest and
extraordinary item   (23,315)       27,961      (48,965)       92,685
(Benefit) provision
for income taxes      (8,873)        8,076      (17,441)       32,241
Minority interest in
net (loss) income         --           106         (145)           20
Net (loss) income
before extraordinary
item                 (14,442)       19,779      (31,379)       60,424
Extraordinary item
net of taxes              --         7,610           --         7,610
Net (loss) income    $(14,442)      $27,389     $(31,379)      $68,034
Net (loss) earnings
per share before
extraordinary item:
Basic                 $(0.45)        $0.63       $(0.99)        $1.93
Diluted               $(0.45)        $0.61       $(0.99)        $1.86
Net earnings per
share from
extraordinary item:
Basic                    $--         $0.24          $--         $0.24
Diluted                  $--         $0.22          $--         $0.24
Net (loss) earnings
per share:
Basic                 $(0.45)        $0.87       $(0.99)        $2.17
Diluted               $(0.45)        $0.83       $(0.99)        $2.10
Basic weighted-average
common shares
outstanding           31,821        31,517       31,712        31,336
Diluted weighted-average
common shares
outstanding           31,821        34,078       31,712        32,425
CONDENSED CONSOLIDATED INCOME STATEMENT (UNAUDITED)
Other information
(in thousands except per share data)
Quarter Ended December 31,   Year Ended December 31,
2001           2000        2001           2000
ADDITIONAL INFORMATION
- Pro forma without
exceptional items:
Pro forma net (loss)
income without
exceptional items    $(9,351)      $19,779     $(16,814)      $60,888
Pro forma basic (loss)
earnings per share    $(0.29)        $0.63       $(0.53)        $1.94
Pro forma fully
diluted (loss)
earnings per share    $(0.29)        $0.61       $(0.53)        $1.88
ADDITIONAL INFORMATION
- EBITDA:
(Loss) earnings before
interest, taxes,
depreciation and
amortization
assuming no dilution
from convertible
notes               $(18,469)      $42,087     $(32,244)     $112,337
Pretax EBITDA
diluted EPS            $(0.58)        $1.30       $(1.02)        $3.46
After tax EBITDA
diluted EPS           $(0.37)        $0.86       $(0.66)        $2.29
THE PRO FORMA AMOUNTS
HAVE BEEN ADJUSTED TO
ELIMINATE THE FOLLOWING:
Excess, obsolete and
warranty inventory
charges                   --            --        7,116            --
Other operating
expenses               5,625            --        6,846            --
Goodwill impairment        --            --        5,446            --
Restructuring charge    2,456            --        3,070         1,000
Litigation recovery        --            --       (1,500)           --
Merger costs               --            --           --         4,583
Extraordinary
gain, before tax          --       (12,176)          --       (12,176)
Gain on sale of
investment                --            --           --        (4,841)
Income tax effect      (2,990)        4,566       (6,413)        4,288
$5,091       $(7,610)     $14,565       $(7,146)
EBITDA RECONCILIATION
(Loss) income before
income taxes and
minority interest    (23,315)       27,961      (48,965)       92,685
Extraordinary item         --        12,176           --        12,176
Interest income        (2,164)       (2,722)      (6,581)      (10,727)
Interest expense        2,984         1,602        7,399         7,698
Depreciation and
amortization           4,026         3,070       15,903        10,505
$(18,469)      $42,087     $(32,244)     $112,337
CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
(in thousands)
December 31,      December 31,
2001              2000
ASSETS
Current Assets:
Cash and cash equivalents                 $81,955           $31,716
Marketable securities - trading           190,023           157,811
Accounts receivable                        30,812            76,545
Income tax receivable                      15,862                74
Inventories                                45,248            45,266
Other current assets                        4,178             2,508
Deferred income tax assets, net            11,200             7,483
Total current assets                       379,278           321,403
Property and equipment, net                 31,095            24,101
Notes receivable                                --             2,472
Goodwill and intangibles, net               23,072             9,890
Investments - available for sale             5,350             1,824
Deferred debt issuance costs                 5,736             2,261
Other assets                                 5,664             3,884
Total assets                              $450,195          $365,835
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable, trade                   $11,658           $18,250
Other current liabilities                  13,351            16,210
Accrued income taxes payable                   --             7,923
Current portion of long-term debt           1,130             1,337
Accrued interest payable on
convertible subordinated notes             2,696               529
Total current liabilities                   28,835            44,249
Long-term Liabilities:
Capital leases and notes payable               --             1,043
Deferred income tax liability, net            415                --
Convertible subordinated notes payable    206,600            81,600
Total long-term liabilities                207,015            82,643
Total liabilities                          235,850           126,892
Minority interest                               --               145
Stockholders' equity                       214,345           238,798
Total liabilities and
stockholders' equity                     $450,195          $365,835
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
(in thousands)
Year Ended December 31,
2001              2000
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income                        $(31,379)           $68,034
Depreciation and amortization              16,678             11,122
Provision for inventory and
product-related liabilities                7,116                 --
Loss on impairment of goodwill              5,446                 --
Other operating expenses                    6,846                 --
Stock issued for services rendered             --              2,430
Gain on repayment of convertible debt          --            (12,176)
Gain on sale of investment                     --             (4,841)
Changes in marketable securities, net     (26,688)            38,100
Earnings from marketable securities, net   (4,925)            (9,471)
Accounts receivable                        45,127            (30,074)
Inventories                                (3,688)           (16,856)
Accounts payable, trade                    (7,934)             2,548
Income taxes                              (21,949)            14,631
Other                                      (8,399)              (120)
Net cash (used in) provided by
operating activities                    (23,749)            63,327
CASH FLOWS FROM INVESTING ACTIVITIES:
Advances under notes receivable                --             (2,472)
Proceeds from sale of investments              --              4,464
Proceeds from sale of equipment                --                150
Purchase of property and equipment, net   (12,435)           (14,062)
Purchase of investments                    (7,186)              (981)
Purchase of LITMAS, net of cash acquired       --               (250)
Acquisition of EMCO, net of cash
acquired                                 (29,932)                --
Net cash used in investing activities    (49,553)           (13,151)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from convertible debt, net       121,250                 --
Repurchase of convertible debt, net            --            (40,795)
Net change from notes payable and
capital lease obligations                 (1,136)            (1,632)
Proceeds from common stock transactions     3,970              4,914
Net cash provided by (used in)
financing activities                    124,084            (37,513)
EFFECT OF CURRENCY TRANSLATION ON CASH        (543)            (1,990)
INCREASE IN CASH AND CASH EQUIVALENTS       50,239             10,673
CASH AND EQUIVALENTS, beginning of period   31,716             21,043
CASH AND EQUIVALENTS, end of period        $81,955            $31,716
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SOURCE Advanced Energy
Web site: http: //www.advanced-energy.com
Photo: NewsCom: http: //www.newscom.com/cgi-bin/prnh/20000609/AEISLOGO AP Archive: http://photoarchive.ap.org PRN Photo Desk, +1-888-776-6555 or +1-212-782-2840
CONTACT: Mike El-Hillow, Senior Vice President, Chief Financial Officer, +1-970-407-6570, mike.el-hillow@aei.com, or Cathy Kawakami, Director of Investor Relations, +1-970-407-6732, cathy.kawakami@aei.com, both of Advanced Energy Industries, Inc.
CAPTION: AEISLOGO ADVANCED ENERGY INDUSTRIES LOGO Development, marketing, and support of critical technology solutions for the manufacture of semiconductors, data storage products, and flat panel displays as well as for surface modification applications and process power control. (PRNewsFoto)[PM] FORT COLLINS, CO USA 06/19/2000