AXT, Inc. Retains World-Renowned Scientist Grant Elliot, Ph.D. to Extend R&D Capabilities

FREMONT, CA--(Marketwire - January 28, 2008) - AXT, Inc. (NASDAQ: AXTI), a leading manufacturer of compound semiconductor substrates, today announced that it has retained the services of world-renowned scientist Grant Elliot, Ph.D. to extend its research and development activities under Chia-Li Wei, chief technology officer, primarily in the areas of VGF technology enhancements and Czochralski (Cz) and Liquid Encapsulated Czochralski (LEC) Crystal Growth.

Dr. Elliot has more than 40 years of research and development and engineering experience in materials ranging from oxides and high temperature inter-metallic compounds to III-V semiconductors. He spent 18 years developing and augmenting the III-V crystal growth capability of Hewlett Packard's Optoelectronics Division. His primary area of expertise is the LEC growth of both gallium arsenide (GaAs) and gallium phosphide (GaP).

Dr. Elliot obtained his bachelor's of science degree in ceramic engineering from the University of California, Berkeley and started his career in research and development with Lockheed Missiles and Space Co. Palo Alto Research Labs. After obtaining his master's degree in materials science from San Jose State University, he was awarded a Graduate Study Fellowship from Lockheed to pursue his doctorate in materials science at Stanford University. Following a postdoctoral fellowship appointment in the Physics Department at Southampton University, England, he returned to Stanford University to carry out research on ceramic materials for battery applications and to study the liquid phase epitaxy growth of gallium arsenide on various substrate materials. He later joined the III-V crystal growing group at Hewlett Packard's Optoelectronics Division.

Dr. Elliot has 33 publications and one patent. He served one term as vice president for the American Association for Crystal Growth and was president of the American Association for Crystal Growth/Western Region for several terms.

"We are very pleased to have retained the services of Dr. Elliot, a leading scientist in the area of LEC growth of both gallium arsenide and gallium phosphide," said Dr. Phil Yin, chairman and chief executive officer. "We are very committed to developing world-class Cz and LEC capabilities in order to broaden our product offering into areas that we do not currently participate in and to improve our manufacturing cost structure for certain current products, in which these technologies offer the most appropriate level of performance. We continue to focus on our internal competencies with an eye towards providing a more comprehensive product offering to meet our customers' future device requirements."

About AXT, Inc.

AXT designs, develops, manufactures and distributes high-performance compound and single element semiconductor substrates comprising gallium arsenide (GaAs), indium phosphide (InP) and germanium (Ge) through its manufacturing facilities in Beijing, China. In addition, AXT maintains its sales, administration and customer service functions at its headquarters in Fremont, California. The company's substrate products are used primarily in lighting display applications, wireless communications, and fiber optic communications. Its vertical gradient freeze (VGF) technique for manufacturing semiconductor substrates provides significant benefits over other methods and enabled AXT to become a leading manufacturer of such substrates, particularly in optoelectronics applications. AXT has manufacturing facilities in China and invests in five joint ventures producing raw materials. For more information, see AXT's website at http://www.axt.com.

Safe Harbor Statement

The foregoing paragraphs contain forward-looking statements within the meaning of the Federal Securities laws, including statements related to the future performance of the company and our ability to develop world-class Cz and LEC capabilities, broaden our product offering, improve our manufacturing cost structure and provide a more comprehensive product offering to meet our customers' future device requirements. These forward-looking statements are based upon specific assumptions that are subject to uncertainties and factors relating to the company's operations and business environment, which could cause actual results of the company to differ materially from those expressed or implied in the forward-looking statements contained in the foregoing discussion. These uncertainties and factors include but are not limited to the impact of customer qualification of our products, improvements in our production processes, product quality and yields, cost and supply of raw materials, the impact of technology developments providing new markets for GaAs and Ge substrates, overall conditions in the markets in which the company competes as well as market conditions and trends; market acceptance and demand for the company's products; and other factors as set forth in the company's annual report on Form 10-K and other filings made with the Securities and Exchange Commission. Each of these factors is difficult to predict and many are beyond the company's control. The company does not undertake any obligation to update publicly any forward-looking statement, as a result of new information, future events or otherwise.

Contact Information: Contacts: Wilson W. Cheung Chief Financial Officer (510) 683-5900 Leslie Green Green Communications Consulting, LLC (650) 312-9060