For more information, contact:

Lawrence D. Firestone
Advanced Energy Industries, Inc.
970.407.6570
lawrence.firestone@aei.com

Annie Leschin/Brooke Deterline
Advanced Energy Industries, Inc.
970.407.6555
ir@aei.com


Advanced Energy Announces Strong First Quarter Results
Fort Collins, Colo., April 23, 2008—Advanced Energy Industries, Inc. (Nasdaq GM: AEIS) today announced financial results for the first quarter ended March 31, 2008. Sales were $88.9 million for the quarter, representing a decline of 17.2% from $107.3 million in the first quarter of 2007 and an increase of 6.0% from $83.8 million in the fourth quarter of 2007.

Net income for the first quarter of 2008 was $6.0 million, or $0.13 per diluted share, compared to $12.7 million, or $0.28 per diluted share, in the first quarter of 2007. However, net income increased sequentially from $4.2 million, or $0.09 per diluted share, in the fourth quarter of 2007, primarily due to higher revenues and gross profit.

"Strength in our solar equipment and flat panel display markets drove total revenue and EPS above our guided range this quarter. We were pleased with our continued diversification, as we grew our non-semiconductor business 18% sequentially,” said Dr. Hans Betz, president and chief executive officer of Advanced Energy. “We implemented cost reductions in G&A during the first quarter that will equate to an estimated $5.5 million in annual savings. This will position us to operate more effectively and profitably in the future."

Second Quarter 2008 Guidance

The Company anticipates the semiconductor market to remain weak through the second quarter 2008 and our results to be within the following ranges:

  • Sales of $81 million to $87 million
  • Earnings per share of $0.07 to $0.12

First Quarter 2008 Conference Call

Management will host a conference call today, Wednesday, April 23, 2008, at 5:00 p.m. Eastern Daylight Time, to discuss Advanced Energy's financial results. You may access this conference call by dialing 888-713-4717. International callers may access the call by dialing 706-634-7937. Participants will need to provide a conference passcode 42737664. For a replay of this teleconference, please call 800-642-1687 or 706-645-9291, and enter the passcode 42737664. The replay will be available through 12:00 a.m. Eastern Daylight Time, April 25, 2008. A webcast will also be available on the Investor Relations webpage at http://ir.advanced-energy.com.

About Advanced Energy

Advanced Energy® develops innovative power and control technologies that enable high-growth, plasma thin-film manufacturing processes worldwide, including semiconductors, flat panel displays, data storage products, solar cells, architectural glass, and other advanced product applications. Advanced Energy® also develops grid connect inverters for the solar energy market.

The Company’s expectations with respect to financial results for the second quarter of 2008 are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are 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 industries the company serves, particularly the semi-conductor industry, the timing of orders received from customers, the company's ability to realize cost improvement benefits from the global operations initiatives underway, and unanticipated changes to management's estimates, reserves or allowances. These and other risks are described in Advanced Energy's Form 10-K, Forms 10-Q and other reports and statements 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 from Advanced Energy's website at www.advanced-energy.com or by contacting Advanced Energy's investor relations at 970-407-6555. Forward-looking statements are made and based on information available to the company on the date of this press release. The company assumes no obligation to update the information in this press release.

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    CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
    (in thousands, except per share data)


                                                    Three Months Ended
                                                 March 31,        December 31,
                                             2008        2007         2007

    Sales                                    $88,887     $107,323   $83,836
    Cost of sales                             53,039       59,014    51,017
    Gross profit                              35,848       48,309    32,819

    Operating expenses:
         Research and development             13,085       12,035    12,510
         Selling, general and
          administrative                      14,468       15,218    16,075
         Amortization of intangible
          assets                                 240          324       218
         Restructuring charges                   674        2,792      (219)
              Total operating expenses        28,467       30,369    28,584

    Income from operations                     7,381       17,940     4,235

    Other income, net                            905        1,554     1,444
    Income from continuing operations
     before income taxes                       8,286       19,494     5,679
    Provision for income taxes                 2,320        6,823     1,512

    Net income                                $5,966      $12,671    $4,167

    Basic and diluted earnings per share       $0.13        $0.28     $0.09

    Basic weighted-average common shares
     outstanding                              44,662       44,941    45,274

    Diluted weighted-average common
     shares outstanding                       45,065       45,636    45,758



    CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
    (in thousands)

                                                 March 31,        December 31,
                                                    2008              2007

    ASSETS

    Current assets:
         Cash and cash equivalents               $99,064           $94,588
         Marketable securities                    37,816           110,676
         Accounts receivable, net                 70,493            64,188
         Inventories, net                         51,603            50,532
         Deferred income taxes                    14,156            23,696
         Other current assets                      3,757             4,289
    Total current assets                         276,889           347,969

    Property and equipment, net                   31,870            30,912

    Deposits and other                            46,140             7,045
    Goodwill and intangibles, net                 72,528            67,768
    Customer service equipment, net                1,060             1,236
    Deferred income tax assets, net               14,614             4,098

    Total assets                                $443,101          $459,028


    LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities:
         Trade accounts payable                  $16,786           $12,424
         Other accrued expenses                   25,669            29,590
    Total current liabilities                     42,455            42,014

    Long-term liabilities                          9,979             9,953

    Total liabilities                             52,434            51,967

    Stockholders' equity                         390,667           407,061
    Total liabilities and stockholders'
     equity                                     $443,101          $459,028