Genus Reports Fourth Quarter and Year-End 2002 Results

SUNNYVALE, Calif. - February 10, 2003 - Genus, Inc. (NASDAQ: GGNS) today reported financial results for the fourth quarter and twelve months ended December 31, 2002. Senior management will conduct an investor conference call to discuss these results and the company's financial outlook in more detail at 8:00 a.m. pacific time tomorrow, Tuesday, February 11, 2003. Access information is provided below.

Net sales for the fourth quarter 2002 were $11.3 million compared to net sales of $5.7 million for the same quarter of 2001. The net loss for the fourth quarter 2002 was $2.7 million or $(0.10) per diluted share compared to a net loss of $5.2 million or $(0.23) per diluted share in the same quarter of 2001.

Net sales for the twelve-month period 2002 were $39.8 million compared to net sales of $48.7 million for fiscal 2001. The net loss for the twelve months ended December 31, 2002 was $11.6 million or $(0.43) per diluted share compared to a net loss of $6.7 million, or $(0.31) per diluted share in the same period of 2001. Bookings for the twelve months ended December 31, 2002 were $56 million, 68 percent above the bookings recorded for the twelve months ended December 31, 2001.

"In 2002, both Genus and the atomic layer deposition (ALD) market made great strides in market development," said Bill Elder, Genus' chairman and CEO. "Genus added two new customers, bringing its client roster to a total of ten, and received orders for volume production from two customers in the data storage segment and one customer in the semiconductor segment. These volume purchase orders reflect the growing acceptance of ALD technology as a manufacturing process. The ALD market is forecasted by VLSI Research to be over $1 billion by 2006 and is one of the fastest growing segments in our industry today. Currently, Genus stands poised to benefit from the technology transition that is driving the semiconductor capital equipment industry, as our products serve both the 300mm and next-generation technology markets. Our confidence is slightly tempered by ongoing economic weakness and geopolitical uncertainties, leading to customers deferring capital expenditures. As a result, we anticipate seeing modest growth in the first two quarters of 2003, with potential for acceleration in the second half of the year."

"Fourth quarter 2002 revenues were almost double revenues recorded in the fourth quarter of 2001," said Shum Mukherjee, executive vice president finance and CFO. "Gross profit margin was 23 percent of revenues, compared to 12 percent in the prior year quarter. Gross margin in Q4 of 2002 was impacted by two factors. First, we incurred manufacturing inefficiencies of around $600,000 related to expediting component supplies and compressing processing schedules to help our customers meet their production commitments. Second, we recorded increased provisions of around $500,000 primarily related to increasing our inventory reserves for spare parts for our CVD equipment. Operating expenses were $4.3 million, 24 percent below operating expenses of $5.7 million recorded in the same quarter last year."

Genus ended the fourth quarter 2002 with cash and marketable securities of $11.5 million, compared to cash and marketable securities of $3.0 million on December 31, 2001 and $9.1 million on September 30, 2002.



Financial Guidance
Genus expects full year 2003 bookings to be in the range of $60 million to $70 million, and full year revenues to be in the range of $50 million to $60 million

Conference Call Information
Genus plans to host an investor conference call on Tuesday, February 11, 2003, at 8:00 a.m. pacific time, featuring remarks by Bill Elder, chairman and chief executive officer, and Shum Mukherjee, executive vice president finance and CFO, followed by a live question and answer session. The call will be accessible live by dialing 800-297-9150.

The conference call will also be broadcast live over the Internet at www.genus.com. A replay of the call will be available for 48 hours, beginning two hours after the call, by dialing 888-266-2081 and entering access code 6386846. A web cast replay will be available at www.genus.com.

About Genus
Genus, Inc. manufactures critical deposition processing products for the global semiconductor industry and the data storage industry. To enable the production of intricate micro computer chips and electronic storage devices, Genus offers its LYNX series production-proven equipment for 200mm and 300mm semiconductor production, and offers thin film deposition products for chemical vapor deposition (CVD), atomic layer deposition (ALD), and pre-clean capabilities. Genus is at the forefront of market and technology developments in the ALD marketplace, which is gaining acceptance worldwide as a critical technology for sub 0.13-micron production of computer chips and electronic storage devices. Genus' customers include semiconductor manufacturers located throughout the United States, Europe and the Pacific Rim including Korea, Japan and Taiwan. Founded in 1981, the company is headquartered in Sunnyvale, California. For additional information visit Genus' web site at www.genus.com. LYNX2® and LYNX3™ are trademarks of Genus, Inc

Forward-Looking Statements
This press release contains forward-looking statements regarding the company's future financial and business performance. These forward-looking statements are subject to a number of risks and uncertainties. These contingencies include but are not limited to: actual customer orders received by the company, the extent to which ALD technology is demanded by the marketplace, the actual number of customer orders received by the company, availability of components from suppliers, the timing of final acceptance of products by customers, the financial climate, accessibility to financing and fulfillment of closing conditions, general conditions in the thin film equipment market and in the macro-economy, and the influence of global political events. Genus assumes no obligation to update this information. Additional risks and uncertainties are discussed in the Management's Discussion and Analysis of Results of Operations contained in Genus' Annual Report on Form 10-K for the fiscal year ended December 31, 2001 and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission.

Exhibit 1
Genus, Inc. Condensed Consolidated Statement of Operations (unaudited)

Exhibit 2
Genus, Inc. Condensed Consolidated Balance Sheets (unaudited)