November 13, 2001 – Beverly, MA – Axcelis will reduce its headcount by 20% from December 2000 levels and consolidate its domestic manufacturing facilities. As part of this consolidation, its Rockville, MD, equipment production will be moved to Beverly, MA. The company’s Rockville, MD, location will continue as the Axcelis marketing and technology center for Curing and Cleaning Systems.

“Today’s actions are designed to increase our operating leverage, while enabling us to continue to support our critical new product programs for the transition to 300mm technology,” said Brian Bachman, vice chairman and CEO of Axcelis Technologies. “We are committed to using this period to strengthen our market position with investments in new product development.”

Bachman said the actions will begin immediately and continue through the 3Q02. He said the company will provide transitional assistance, severance payments, a benefits continuation program and comprehensive outplacement service to all affected employees.

The company also reaffirmed its revenue and earnings guidance for the fourth quarter. Worldwide (including SEN) and net revenues are projected to be $60 to $70 million and $40 to $50 million, respectively, for 4Q, with a corresponding net loss (before goodwill and intangible amortization) of 15 to 20% per share.

Since January, the company has been proactively managing its business in response to industry conditions and instituted a number of cost saving measures including executive pay freezes, work force reductions, temporary plant shutdowns and voluntary furloughs. The company has reduced its recurring quarterly selling, general and administrative expense by 26% since the start of the year.