Genus Reports Sales Up 61 Percent, Profitability Up 280 Percent in Third Quarter 2000 Results

SUNNYVALE, Calif. (October 31, 2000) – Genus, Inc. (Nasdaq: GGNS) announced profitable results for the third consecutive quarter ending September 30, 2000. The company recorded net sales of $14.2 million, a 61 percent increase over the $8.8 million reported for the third quarter of 1999. Net income for the third quarter of 2000 was $1.2 million or $0.06 per share, 280 percent higher than the $313,000 net income or $0.02 per share for the same quarter of 1999. For the nine months ending September 30, 2000, revenue was $38.8 million, 71 percent higher than the $22.7 million for the first nine months of 1999, and year-to-date net income was $3.1 million or $0.15 per share fully diluted, compared to a net loss of $119,000 or $0.01 per share in 1999.

"Genus is performing very well this year as evidenced by solid financials with three quarters of sequential growth in revenue and operating profits," said Dr. William Elder, Genus chairman and chief executive officer. "We recently achieved ISO 9001 certification, and the business is moving in an exciting direction that includes non-semiconductor applications. We are now actively engaged with several new customers for our atomic layer deposition (ALD) technology, and we anticipate shipping to two new customers by the end of the year."

As previously announced, Dr. Elder and Kenneth Schwanda, chief financial officer, will hold a conference call this morning which also will be Webcast live to the general public. During the call, various topics will be discussed, including the outlook for the fourth quarter and 2001. Revenues and profitability in the fourth quarter are anticipated to be similar to those of the third quarter. However, if the Securities and Exchange Commission requires the implementation of SAB 101 during the fourth quarter, Genus' financial results for the fourth quarter and fiscal year 2000 will be affected. Not all of the fourth quarter business has been booked yet, but Genus expects to receive orders in time to meet the revenue projections. For 2001, revenue and profitability are expected to increase approximately 50 percent over 2000 levels.

Bookings, including the multiple system order announced last week that had been expected to close during the third quarter but was actually received in October, amounted to approximately $17 million.

Genus is enjoying high levels of customer interaction and interest in its ALD technology for both semiconductor and non-semiconductor applications. The company anticipates shipping two ALD systems during the fourth quarter and two more during the first half of 2001 to additional new customers. ALD for production is anticipated to occur late in 2001, when the industry migrates toward 0.13 micron geometries. Shipments into research and development facilities should continue throughout the year.

For the financial statement, click here.

Conference Call Information

Genus will hold its third quarter conference call with financial analysts today at 8:00 a.m. Pacific time which also will be simultaneously Webcast for the first time. The live and on-demand Webcast will be available at StreetFusion.com as well as linked to the Genus.com home page. The call will be available for instant telephone replay at 402-998-0807 until 5:00 p.m on Friday, November 3, 2000. The Webcast replay will be archived at www.genus.com through November 30, 2000.

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.