Semitool Announces Fiscal First Quarter Financial Results

KALISPELL, MT--(Marketwire - January 31, 2008) - Semitool, Inc. (NASDAQ: SMTL), a leading manufacturer of wafer processing equipment for the semiconductor industry, today reported financial results for its fiscal first quarter ended December 31, 2007.

Revenue in the quarter was $48.6 million compared with $68.0 million in the comparable quarter a year ago. Gross margin improved to 50 percent versus 48 percent in last year's first quarter. The company reported a net loss of $0.8 million, or $0.02 per share, versus net income of $5.7 million, or $0.18 per share, in the first quarter last year. The net loss was largely attributable to increased stock-based compensation expense amounting to $0.01 per share, increased costs of foreign operations due to weakness in the dollar, and increased process development support costs associated with Semitool's sales and marketing achievements in Asia.

First quarter bookings were $63.8 million, a 42 percent increase versus the same period a year ago and the strongest quarterly bookings performance in more than a year. Deferred revenue at the end of the first quarter was $17.3 million and shipping backlog was $72.2 million, combining for a total revenue backlog of $89.5 million. Total shipments in the first quarter were $50.5 million.

Larry Murphy, president and chief operating officer, said, "Our order activity remained strong during the first quarter, with 49 percent of our tool bookings coming from the Asian market. In addition to the success we have achieved with our copper plating and cleaning tools, we are now seeing heightened activity in the advanced packaging sector, where the Raider is addressing the cost and device performance objectives of our customers."

Ray Thompson, chairman and CEO, said, "In working to continue our market share expansion, we have turned our focus toward the development of next-generation tools and processes that deliver the payback opportunities being demanded by our customers."

Guidance

Management expects to report revenue for the second quarter of fiscal 2008 in the range of $59 million to $61 million. Second quarter earnings per share are expected to range from $0.06 to $0.08. Shipments for the quarter are expected to range from $60 million to $62 million.

Conference Call Information

Semitool will host an investor conference call today at 5:00 p.m. Eastern. The call can be accessed by dialing 888-713-4213 (617-213-4865 for international callers) and entering the passcode 31670451. A simultaneous webcast will be available via the Internet at www.semitool.com. Webcast participants should access the website at least 10 minutes early to register and download any necessary audio software. A replay of the webcast will be available for 90 days. An audio replay of the call will be available from 7 p.m. Eastern on January 31, 2008, until 11:59 p.m. Eastern on February 2, 2008, and can be accessed by calling 888-286-8010 (617-801-6888 for international callers) and entering the passcode 62083446.

About Semitool, Inc.

Semitool designs, manufactures and supports highly engineered, multi-chamber single-wafer and batch wet chemical processing equipment used in the fabrication of semiconductor devices. The company's primary suites of equipment include electrochemical deposition systems for electroplating copper, gold, solder and other metals; surface preparation systems for cleaning, stripping and etching silicon wafers; and wafer transport container cleaning systems. The company's equipment is used in semiconductor fabrication front-end and back-end processes, including wafer-level packaging.

Headquartered in Kalispell, Montana, Semitool maintains sales and support centers in the United States, Europe and Asia. The company's stock trades on Nasdaq under the symbol SMTL. For more information, please visit the company's website at www.semitool.com.

Semitool is a registered trademark of Semitool, Inc.

Safe Harbor Statement

The matters discussed in this news release include forward-looking statements, including statements related to (i) heightened activity in the advanced packaging sector, (ii) the development of next-generation tools and processes and (iii) financial guidance for the second quarter of fiscal 2008. Also, bookings, deferred revenue, revenue backlog and product shipments are not necessarily an indication of revenue in any future period. These forward-looking statements are based on management's assumptions, estimates and projections as of the date hereof and are subject to risks and uncertainties that are discussed in our filings with the U.S. Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K for the fiscal year ended September 30, 2007 and subsequent filings with the SEC. Growth opportunities in the advanced packaging sector and launching new products can be adversely affected by a number of factors, including customers' ultimate preference for our tools and the tools' performance, the ability to capture market share, the ability to timely introduce a new product and technological challenges related to its performance, as well as the general factors affecting our industry. In addition, many factors can adversely affect forecasted financial performance, including cancellations and push-outs, customers' on-site acceptance of our products, unanticipated costs, as well as a number of other risk factors described in our Form 10-K. Our business in general is subject to risks that can cause actual results to differ materially from those anticipated in our forward-looking statements, including, without limitation, demand being adversely affected by the cyclicality in the semiconductor industry, delays in acceptance and payment for shipped tools, the company's ability to timely deliver and support its products, technological changes that affect our ability to compete, the risks associated with competing on a global basis and possible volatility in key markets. We assume no obligation to update forward-looking statements that become untrue because of subsequent events.

                              SEMITOOL, INC.
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
             (Amounts in Thousands, Except Per Share Amounts)
                                (Unaudited)


                                     Three Months    Three Months
                                        Ended           Ended
                                     December 31,    December 31,
                                         2007            2006
                                    --------------  --------------

Net sales                           $       48,592  $       67,965
Cost of sales                               24,420          35,200
                                    --------------  --------------
Gross profit                                24,172          32,765
                                    --------------  --------------

Operating expenses:
  Selling, general and
   administrative                           18,696          19,609
  Research and development                   6,979           6,481
  Gain on sale of building                      --            (648)
                                    --------------  --------------
    Total operating expenses                25,675          25,442
                                    --------------  --------------

Income (loss) from operations               (1,503)          7,323
Other income, net                              447             255
                                    --------------  --------------
Income (loss) before income tax             (1,056)          7,578
Income tax provision (benefit)                (280)          1,885
                                    --------------  --------------

Net income (loss)                   $         (776) $        5,693
                                    ==============  ==============


Earnings (loss) per share:
  Basic                             $        (0.02) $         0.18
                                    ==============  ==============
  Diluted                           $        (0.02) $         0.18
                                    ==============  ==============

Weighted average common shares:
  Basic                                     32,155          31,956
  Diluted                                   32,155          32,500




                              SEMITOOL, INC.
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                          (Amounts in Thousands)
                                (Unaudited)



                                           December 31,  September 30,
                                               2007          2007
                                           ------------  ------------
                 ASSETS

Current assets:
  Cash and cash equivalents                $     12,389  $     16,090
  Marketable securities                           1,280            --
  Trade receivables, net                         66,213        56,999
  Inventories                                    82,754        78,017
  Prepaid expenses and other current
   assets                                        18,390        16,875
                                           ------------  ------------
    Total current assets                        181,026       167,981
Property, plant and equipment, net               48,007        49,148
Other assets, net                                 9,004         9,200
                                           ------------  ------------
    Total assets                           $    238,037  $    226,329
                                           ============  ============

   LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:
  Trade accounts payable                   $     18,418  $     12,958
  Other current liabilities                      35,618        31,654
                                           ------------  ------------
    Total current liabilities                    54,036        44,612
Long-term liabilities                            15,116        12,864
                                           ------------  ------------
    Total liabilities                            69,152        57,476
                                           ------------  ------------

Shareholders’ equity:
  Common stock                                   84,687        83,215
  Retained earnings                              84,683        86,130
  Accumulated other comprehensive loss             (485)         (492)
                                           ------------  ------------
    Total shareholders’ equity                  168,885       168,853
                                           ------------  ------------
      Total liabilities and shareholders’
       equity                              $    238,037  $    226,329
                                           ============  ============

Contact Information: Contacts: Semitool, Inc. Larry Viano Chief Financial Officer 406.752.2107 Pfeiffer High Investor Relations, Inc. Geoff High 303.393.7044 www.pfeifferhigh.com