Genus Scores Victory in Lawsuit with ASMI

Genus Does Not Infringe on ALD Related Patents Says Federal Court In San Francisco

SUNNYVALE, Calif. - January 17, 2003 - Atomic Layer Deposition (ALD) leader Genus, Inc. (NASDAQ: GGNS) today announced a significant victory in its patent dispute with Dutch semiconductor equipment maker ASM International (ASMI). In an order filed January 10, 2003, the Federal District Court in San Francisco declared that Genus does not infringe U.S. Patent No. 6,015,590, which relates to ALD.

In combination with another order issued November 20, 2002 the court also declared that Genus does not infringe U.S. Patent No. 5,916,365. As a result of these developments, the Court now has ruled that Genus does not infringe on either of the ALD-related patents asserted against it by ASMI in the complaint dated June 6, 2001.

The patent dispute between Genus and ASMI also involves Genus' claim that ASMI infringes U.S. Patent No. 5,294,568, entitled "Method of Selective Etching Native Oxide," and ASMI's claim that Genus infringes U.S. Patent No. 4,798,165, entitled "Apparatus for Chemical Vapor Deposition (CVD), using an axially symmetric gas flow." These additional claims remain a subject of the litigation pending resolution. "We have consistently maintained that Genus does not infringe ASMI's ALD patents, and we are pleased to have been vindicated by the court," said Genus CEO, William Elder. "We also feel that this ruling clears the way for our counter-suit based on the '568 patent, which we believe to be infringed by the HF Vapor Clean module sold by ASMI with its Polygon tool."

Werner Rust, Genus' vice president of sales and marketing commented, "The TFH business has been very good for Genus. Not only is it a valuable source of income for the company when other markets are down, but it also has given us a unique opportunity to hone our skills in a production environment. In return, and with our support, our TFH customers have extended their current manufacturing process beyond what was possible with other deposition techniques, in addition to experiencing greater yields at a lower cost of ownership."

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 microcomputer chips and electronic storage devices, Genus offers its LYNX and StrataGem series of 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.

NOTE: LYNX2®, LYNX3™ and StrataGem™ 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, 2002 and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission.