FREMONT, Calif. - February 2, 2011 - Mattson Technology, Inc. (Nasdaq: MTSN), a leading supplier of advanced process equipment used to manufacture semiconductors, today announced results for the 2010 fourth quarter and full year ended December 31, 2010.

• Fourth quarter revenue of $41.3 million marked the seventh consecutive quarter of revenue growth. Fiscal 2010 revenue of $138.3 million grew 225 percent over 2009.

• 2010 etch revenue increased 6 times over 2009, generated over 30 percent of systems revenue, and expanded into the NAND, foundry, and packaging markets. In the fourth quarter, Mattson Technology shipped etchers for production into a new etch application set, which expands the Company's etch served-available-market by approximately $500 million and doubles the Company's etch application portfolio.

David L. Dutton, Mattson Technology's president and chief executive officer, noted, "We achieved the majority of the aggressive goals we set in 2010, particularly in the new product penetration area. The fourth quarter marked our seventh consecutive quarter of growth, but as we announced on January 4, 2011, customers rescheduled the shipment of DRAM products during the quarter, which caused our revenue growth rate to fall below our expectations. Although the delay was disappointing, new etch product positions, and our strip systems' strong foundry presence, drove the overall business in the fourth quarter." Dutton concluded, "In 2010, revenue grew 225 percent over 2009, and momentum continues to build. Based in part on our new product positions, we expect to outgrow the industry in 2011."

Operating expenses for the fourth quarter were $19.9 million, compared to $19.5 million in the third quarter and $17.1 million for the fourth quarter of 2009. Fourth quarter operating expenses increased relative to the third quarter, as the Company's accounting calendar was comprised of 14 weeks, whereas the prior periods contained 13 weeks.

Net loss for the fourth quarter was $7.9 million, or $0.16 loss per share, compared with a net loss of $6.4 million, or $0.13 loss per share, for the third quarter and net loss of $11.4 million or $0.23 loss per share, for the fourth quarter of 2009.

Cash, cash equivalents, short-term investments and restricted cash at the end of the fourth quarter were $23.0 million, compared with $45.3 million at the end of the third quarter, and $60.4 million at the end of 2009. The cash reduction from the third quarter was due to increases in working capital accounts. Inventory increased $7 million quarter-over-quarter, and accounts receivable and advanced billings increased by $10 million.

Attached to this news release are preliminary unaudited condensed consolidated statements of operations and balance sheets.

This news release contains forward-looking statements. Forward-looking statements address matters that are subject to a number of risks and uncertainties that can cause actual results to differ materially. Such risks and uncertainties include, but are not limited to: Company expectations with respect to continued growth of its business; the timing of significant customer orders for the Company's products; customer acceptance of delivered products and the Company's ability to collect amounts due upon shipment and upon acceptance; the Company's cash position overall, especially as a result of payments made for inventory and the related collections upon shipment of such inventory; end-user demand for semiconductors; customer demand for semiconductor manufacturing equipment; the Company's ability to timely manufacture, deliver and support ordered products; the Company's ability to bring new products to market, to gain market share with such products and the overall mix of the Company's products; customer rate of adoption of new technologies; risks inherent in the development of complex technology; the timing and competitiveness of new product releases by the Company's competitors; the Company's ability to align its cost structure with market conditions; and other risks and uncertainties described in the Company's Forms 10-K, 10-Q and other filings with the Securities and Exchange Commission. The Company assumes no obligation to update the information provided in this news release.

Internet: www.mattson.com.