Realigns Operations and Lowers Breakeven

Company Implements Actions to Reduce Operating and Manufacturing Expenses

SUNNYVALE, Calif.-July 18, 200 - Atomic layer deposition (ALD) market leader Genus (Nasdaq: GGNS) today announced a reduction in staff and contractors that it expects will generate more than $4 million in annual expense savings. The company anticipates that its cash operating breakeven point will be reduced to approximately $10 million in net revenues per quarter following the implementation of these actions.

Approximately 35 full-time employees and contractors will be affected by these actions, bringing the company's total employee base to approximately 100 people. While the workforce reductions affect all departments, a majority of the impact is in administration and operations, with minimal reductions in technology-related positions.

"As we indicated in our updated financial guidance announced on July 2, we have experienced delays in anticipated orders that have led us to lower our revenue outlook for 2002," said Bill Elder, Genus' chairman and CEO. "Today's action is intended to adjust our cost structure to reduce our breakeven point, with the clear goal of achieving profitability in a shorter time frame. We remain confident however that demand remains strong as we are experiencing growing customer interest in our ALD equipment. In concert with our newly reduced cost structure, the growth opportunities in our markets position us for expected and sustained profitability as the industry recovers."

"Despite the difficult decision to reduce our workforce, Genus customer focus remains strong, and we are highly committed to delivering superior support and service for our products. Genus recently achieved a key technological milestone in delivering production-ready film for use in ALD, further solidifying our leadership position. We do not expect today's action to impact our production schedule, manufacturing capabilities, or the service levels required to meet current and growing demand," added Elder.

About ALD
Both the semiconductor and data storage industries continue to migrate toward products with higher density and higher topology. As a result, conformality of deposited films has also become a critical factor. With current technology unable to meet the degree of conformality required to manufacture today's leading-edge technology, the use of Genus' ALD technology in the data storage market has been adopted. ALD enables manufacturers to extend current semiconductor and data storage manufacturing processes by offering greater deposition conformality in smaller feature components with higher aspect ratios.

About Genus
Genus, Inc. manufactures critical deposition processing products for both the global semiconductor and data storage industries. To enable the production of intricate micro computer chips and electronic storage devices, Genus offers its LYNX series production-proven equipment for 200 mm and 300 mm semiconductor production. They also offer 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(TM) 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, the timing of final acceptance of products by customers, the financial climate and accessibility to financing, 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.