FREMONT, Calif. — July 27, 2011 — Mattson Technology, Inc. (Nasdaq: MTSN), a leading supplier of advanced process equipment used to manufacture semiconductors, today announced results for the fiscal 2011 second quarter, ended July 3, 2011.

• Second quarter 2011 revenue of $51.3 million increased 9 percent as compared with first quarter 2011, marking Mattson Technology's ninth consecutive quarter of revenue growth.

• Cash, cash equivalents, short-term investments and restricted cash at the end of the second quarter were $42.9 million dollars, an improvement of $18.4 million dollars from the first quarter. Mattson Technology strengthened working capital during the quarter, growing cash through operations and a stock offering that raised $12.6 million.

• Mattson Technology had broad-based product strength during the second quarter, with all product areas delivered to leading greenfield fabs.

"During the second quarter, we accomplished several important milestones in expanding our product positions and delivered our 9^th consecutive quarter of revenue growth, with a 9 percent improvement over the first quarter of 2011," noted David L. Dutton, Mattson Technology's president and chief executive officer. "This growth was driven by continued strength of our new etch business plus gains in the strip business. We further extended our etch systems into new applications, and have now shipped over 30 paradigmE® and Alpine® etch tools. Beyond etch, our market share growth in strip continues as a result of our low cost, high volume strategy. RTP has also been established in volume production NAND fabs, a new position gained over the last cycle."

Mr. Dutton continued, "As a result of our expanded product positions, Mattson Technology's revenues for the first half of 2011 improved 21 percent over the second half of 2010. Looking forward, we see good opportunities in our served markets. There is uncertainty on a global macro-economic level which is translating into a more conservative outlook on the part of our customers." Mr. Dutton concluded, "Mattson Technology's opportunities lie in our new positions, which we expect will help us achieve our goal of outperforming the industry. We believe that the long-term outlook for the semiconductor industry remains positive, and our investment in the Company's growth strategy has well positioned Mattson Technology to leverage the industry's momentum."

percent gross margin reported in the first quarter of 2011. Operating expenses for the second quarter of $19.4 million was an increase of two percent compared with $19.0 million in the first quarter of 2011.

Second quarter interest and other income (expense), net, was a $0.9 million expense, primarily a result of currency adjustments to certain accounts pertaining to the strengthening of the Euro in Mattson Technology's European operations.

Net loss for the second quarter was $5.2 million, or $0.10 loss per share, compared with a net loss of $6.3 million, or $0.12 loss per share, for the first quarter of 2011, and a net loss of $8.4 million, or $0.17 loss per share, for the second quarter of 2010.

Cash, cash equivalents, short-term investments and restricted cash at the end of the second quarter were $42.9 million, compared with $24.4 million at the end of the first quarter of 2011. The increase in cash was due to the equity offering with net proceeds of $12.6 million, and operational and other cash flow items of $5.8 million.

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

Mattson Technology, Inc. designs, manufactures and markets semiconductor wafer processing equipment used in the fabrication of integrated circuits. We are a leading supplier of plasma and rapid thermal processing equipment to the global semiconductor industry, and operate in three primary product sectors: dry strip, rapid thermal processing and etch. Through manufacturing and design innovation, we have produced technologically advanced systems that provide productive and cost-effective solutions for customers fabricating current- and next-generation semiconductor devices. For more information, please contact Mattson Technology, Inc., 47131 Bayside Parkway, Fremont, CA, 94538. Telephone: (800) MATTSON/(510) 657-5900. Internet:www.mattson.com.