Genus Reports Sales Up 55 Percent, Earnings Up 433 Percent in Second Quarter Results

SUNNYVALE, Calif. (July 31, 2000) – Genus, Inc. (NASDAQ: GGNS) announced profitable results for the second quarter ended June 30,2000. The company recorded net sales of $12.4 million, a 55% increase over the *.0 million reported in the second quarter of 1999. Net income for the second quarter of 2000 was $955,000, or $0.05 per share, 433% higher than the net income of $179,000, or $0.01 per share, for the same quarter 1999. For the six months ending June 30, 2000, revenue was $24.6 million, 77% higher than the $13.9 million for the first six months of 1999, and net income was $1.9 million, or $0.09 per share, compared to a net loss of $432,000, or $0.02 per share.

"The second quarter was another successful one for Genus, as we continue to see strength in the semiconductor equipment marketplace," said Dr. William W.R. Elder, Genus' chairman and CEO. "As expected, revenue and profits were similar to the first quarter, and well above last year's second quarter results. The $24.6 million we shipped during the first six months of 2000 is almost as much as was recorded in all of 1999. We now have all of our third quarter system requirements in backlog, and are focused on booking business for delivery in the fourth quarter and into 2001."

During Semicon West, Genus introduced its next generation multiple process deposition platform called the LYNX3™. This is an advanced 200/300mm bridge tool, featuring a seven-sided wafer-handling robotic platform with dual-end effector robotics for high throughput operation, and up to four process modules, plus one auxiliary cool or metrology station. The LYNX3 also includes innovative and patented design features. Genus also announced at Semicon West a new milestone in the development of advanced dielectrics for memory capacitors and logic gate stacks with the introduction of a new nanolaminate Atomic Layer Deposition (ALD) process.

"We are delighted to have been able to introduce such important developments for our customers, who can benefit from having tools and process solutions ahead of the curve," commented Elder. Genus remains the only deposition equipment supplier offering a production-ready ALD machine and will introduce additional dielectric and barrier metal materials later in 2000.

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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.