Genus Announces Fourth Quarter And Year End 1999 Results

Strong Bookings Reported; Loss Due to System Push Out

SUNNYVALE, Calif. (February 11, 2000) – Genus, Inc. (Nasdaq: GGNS) announced results for the fourth quarter and year ended December 31, 1999. The company recorded net sales of $5.6 million, compared with $5.1 million for the fourth quarter of 1998. Net loss for the fourth quarter of 1999 was $1.5 million or $0.08 per share, compared to net income of $1.3 million or $0.07 per share for the same quarter of 1998.

The company's net sales for 1999 were $28.4 million and net loss was $1.6 million, resulting in a loss of $0.09 per share available to common shareholders. In comparison, Genus' net sales for the previous year were $32.4 million and net loss was $29.5 million or $1.71 per share.

"As previously stated, the fourth quarter was going to be a challenge from a revenue standpoint, as we still needed to book and ship business during the quarter to meet our profitability objective," said Kenneth Schwanda, Genus' chief financial officer. "The atomic layer deposition system to a new customer announced today was scheduled for delivery in December, but was pushed out to the first quarter due to the complexity of the order. While we are disappointed that the timing of this system resulted in a loss for the fourth quarter and year end, it will be incremental to our first quarter 2000 financial plan."

"These are exciting times at Genus," said Dr. William W.R. Elder, Genus chairman and CEO. "The overall performance of the company was excellent. We had a strong bookings quarter of almost $20 million, shipped our first ALD technology to a major U.S. semiconductor manufacturer, and have our expected first quarter revenue requirements in backlog."

For the financial statement, click here.

Safe Harbor

This press release contains statements that may be deemed forward-looking regarding the use of ALD technology by the semiconductor industry. Any such forward-looking statements are subject to a number of risks and uncertainties, including actual acceptance of ALD technology by the marketplace, potential development of competing technologies, cyclical economic conditions in the semiconductor equipment market, and global economic conditions. Additional associated risks and uncertainties are found in the Management's Discussion and Analysis of Results of Operations section of Genus' Annual Report on Form 10-K for the fiscal year ended December 1999 and in Genus' subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission.

About Genus

Founded in 1982, Genus, Inc. designs, manufactures, and markets capital equipment and deposition processes for advanced semiconductor manufacturing, as well as for other emerging non-semiconductor applications. Genus offers various thin-film deposition modules using its own production-proven equipment and processes for both chemical vapor deposition (CVD) and atomic layer deposition (ALD). The deposition processes are used to manufacture integrated circuits for the computer, communications, medical, military, transportation, and consumer electronics industries. Genus' customers include semiconductor manufacturers located throughout the United States, Europe, and the Pacific Rim, including Korea and Japan. Company headquarters are in Sunnyvale, California. For additional information, visit Genus' Web site at www.genus.com.