Genus Adopts Amended Shareholders' Rights Plan

SUNNYVALE, Calif. (September 26, 2000) – Genus, Inc. (Nasdaq: GGNS) announced today that its board of directors has updated its previous Common Shares Purchase Rights Plan with a Preferred Shares Purchase Rights Plan. As with the original plan, the amended plan is designed to protect Genus shareholders from coercive or unfair takeover tactics in the event of an unsolicited attempt to form a business combination. The plan is similar to plans adopted by many public companies. Genus management added that it is not aware of any takeover proposals at this time.

Under the plan, Genus will issue a dividend of one right for each share of common stock of Genus held by shareholders of record as of the close of business on October 13, 2000. These rights will initially trade with shares of Genus Common Stock and will not be immediately exercisable.

The rights will become exercisable ten business days after a person or group announces acquisition of 15% or more of Genus' outstanding Common Stock or ten business days after the commencement of a tender offer that would result in ownership of 15% or more of Genus' Common Stock, if such action is taken without the approval of the board of directors of Genus. If exercised, the rights would significantly dilute the Genus holdings of the would-be acquiror by allowing all shareholders, except the acquiror, to purchase shares of Genus at a price equal to one-half of the then-current trading price. The terms of the rights agreement may be amended by the board of directors at any time prior to the date on which the rights become exercisable. Further details of the plan will be mailed to stockholders following the record date.

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.