Genus Gives Fourth Quarter Update

SUNNYVALE, Calif. (December 21, 2000) – Genus, Inc. (Nasdaq: GGNS) announced that it will ship fewer systems in the fourth quarter than previously expected. One ALD system order from a new ALD customer (announced today) was rescheduled to ship in January of 2001 even though it had been anticipated for this quarter. The delay was caused by late deliveries of critical parts from suppliers, which did not allow for the system to be fully tested prior to shipment. The company also said they would not ship a second atomic layer deposition (ALD) system that had been anticipated for the fourth quarter.

The company projects revenues to be in the range of approximately $8 to $9 million and is expecting a loss for the quarter. Management's earlier guidance given on October 31 had been for revenue of $14 to $15 million and earnings similar to those of the third quarter, $0.06 per share. If the current revenue projections prove accurate, Genus will end the year with a 60 to 70 percent increase in total revenues for the year 2000 over the $28 million total in 1999.

The company added that these revised revenue projections have been provided using accounting methods that have existed prior to the implementation of the Staff Accounting Bulletin No. 101 (SAB 101) issued by the Securities and Exchange Commission. For Genus' fourth quarter reporting, SAB 101 will have become effective retroactively as of January 1, 2000.

"We are ending the year with three ALD customers," said Dr. William Elder, Genus chairman and chief executive officer. "Meanwhile the number of customers expressing interest in our ALD technology continues to rise, and the scope of potential ALD applications expands. In spite of this fourth quarter, the good news is that our ALD technology is gaining wider attention and is emerging as the solution to many next-generation processing problems."

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.