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Lawrence D. Firestone
Advanced Energy Industries, Inc.

Advanced Energy Announces 2007 First Quarter Financial Results
FORT COLLINS, Colo., April 25, 2007—Advanced Energy Industries, Inc. (Nasdaq: AEIS) today announced financial results for the first quarter ended March 31, 2007. Sales were $107.3 million for the first quarter of 2007, an increase of 2.7% compared to $104.5 million in the fourth quarter of 2006, and an increase of 14.1% compared with $94.0 million in the first quarter of 2006. Gross profit was $48.3 million, or 45.0% of sales, an increase of 7.6%, compared with $44.9 million, or 42.9% of sales for the fourth quarter of 2006, and 25.1% higher than $38.6 million, or 41.0% of sales in the first quarter of 2006. Operating profit for the first quarter of 2007, which included a $2.8 million restructuring charge related to the closure of our factory in Stolberg, Germany, was $17.9 million, or 16.7% of sales, an increase of 7.8%, compared with $16.6 million, or 15.9% of sales in the fourth quarter of 2006, and an increase of 35.6%, compared to $13.2 million, or 14.0% of sales in the first quarter of 2006.

Net income from continuing operations for the first quarters of 2007 and 2006 was $12.7 million and $12.8 million, respectively, or $0.28 per diluted share for each period; however, the first quarter of 2007 included the above mentioned restructuring charge of $2.8 million, and an effective tax rate of 35% in the first quarter of 2007 compared to a 15% tax rate in the first quarter of 2006.

"We are pleased with our results this quarter and are particularly encouraged by the strength in the semiconductor and solar markets. Semiconductor revenues were sequentially 8% higher than the fourth quarter of 2006, and solar revenues were 103% higher from the prior quarter representing 7% of our overall sales," said Dr. Hans Betz, president and chief executive officer of Advanced Energy. "Our strong operating performance demonstrates the progress of our strategic initiatives including streamlining our operations and leveraging our technology to diversify our business. We remain excited about the potential of the markets that we serve and in our ability to grow."

Second Quarter 2007 Guidance

The Company anticipates second quarter 2007 results to be within the following ranges:

* Sales of $102 million to $106 million.

* Earnings per share of $0.26 to $0.29.

First Quarter 2007 Conference Call

Management will host a conference call today, Wednesday, April 25, 2007 at 5:00 pm Eastern 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 706-679-7720. For a replay of this teleconference, please call 706-645-9291, and enter the pass code 1215631. The replay will be available through May 2, 2007. There will also be a webcast available on the Investor Relations webpage at

About Advanced Energy

Advanced Energy is a global leader in the development and support of technologies critical to thin film deposition manufacturing processes used in the production of semiconductors, flat panel displays, data storage products, solar cells, architectural glass, and other advanced product applications.

Leveraging a diverse product portfolio and technology leadership, Advanced Energy creates solutions that maximize process impact, improve productivity and lower the cost of ownership for its customers. The Company's portfolio includes a comprehensive line of technology solutions in power, flow, thermal management, and plasma and ion beam sources for original equipment manufacturers (OEMs) and end-users around the world.

Advanced Energy operates in regional centers in North America, Asia and Europe and offers global sales and support through direct offices, representatives and distributors. Founded in 1981, Advanced Energy is a publicly held company traded on the Nasdaq Global Market under the symbol AEIS. For more information, please visit our corporate website:

The Company's expectations with respect to financial results for the second quarter of 2007 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, 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 Copies may also be obtained from Advanced Energy's website at or by contacting Advanced Energy's investor relations at 970-221-4670. 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.


    (in thousands, except per share data)

                                                 Three Months Ended
                                                 March 31,       December 31,
                                              2007       2006        2006

    Sales                                   $107,323    $93,950    $104,533
    Cost of sales                             59,014     55,400      59,639
    Gross profit                              48,309     38,550      44,894

    Operating expenses:
         Research and development             12,035     10,459      12,240
         Selling, general and
          administrative                      15,218     14,405      15,535
         Amortization of intangible
          assets                                 324        477         450
         Restructuring charges                 2,792         29          20
              Total operating expenses        30,369     25,370      28,245

    Income from operations                    17,940     13,180      16,649

    Other income, net                          1,554      1,833       1,060
    Income from continuing operations
     before income taxes                      19,494     15,013      17,709
    (Provision) benefit for income taxes      (6,823)    (2,252)     21,697
      Income from continuing operations       12,671     12,761      39,406

    Gain on sale of discontinued assets           --         --       1,000

      Income from discontinued operations         --         --       1,000

    Net income                               $12,671    $12,761     $40,406

    Net income per basic share
      Income from continuing operations        $0.28      $0.29       $0.88
      Income from discontinued operations        $--        $--       $0.02
      Basic earnings per share                 $0.28      $0.29       $0.90

    Net income per diluted share
      Income from continuing operations        $0.28      $0.28       $0.87
      Income from discontinued operations        $--        $--       $0.02
      Diluted earnings per share               $0.28      $0.28       $0.89

    Basic weighted-average common shares
     outstanding                              44,941     44,571      44,826

    Diluted weighted-average common
     shares outstanding                       45,636     45,004      45,345

    (in thousands)

                                                 March 31,        December 31,
                                                    2007              2006


    Current assets:
         Cash and cash equivalents                 $51,073           $58,240
         Marketable securities                     105,259            85,978
         Accounts receivable, net                   76,318            74,794
         Inventories, net                           57,655            52,778
         Deferred income taxes                      19,677            24,434
         Other current assets                        3,688             4,503
    Total current assets                           313,670           300,727

    Property and equipment, net                     31,647            33,571

    Deposits and other                               7,690             2,640
    Goodwill and intangibles, net                   65,681            65,584
    Customer service equipment, net                    616               832
    Deferred income tax assets, net                  8,833             8,549

    Total assets                                  $428,137          $411,903


    Current liabilities:
         Trade accounts payable                    $17,428           $16,310
         Other accrued expenses                     30,170            36,488
         Current portion of capital
          leases and senior borrowings                 127               131
    Total current liabilities                       47,725            52,929

    Long-term liabilities:
        Capital leases and senior
         borrowings                                    175               198
        Other long-term liabilities                  9,616             2,986
    Total long-term liabilities                      9,791             3,184

    Total liabilities                               57,516            56,113

    Stockholders' equity                           370,621           355,790
    Total liabilities and stockholders'
     equity                                       $428,137          $411,903