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<SEC-DOCUMENT>0001206774-09-000215.txt : 20090209
<SEC-HEADER>0001206774-09-000215.hdr.sgml : 20090209
<ACCEPTANCE-DATETIME>20090209160130
ACCESSION NUMBER:		0001206774-09-000215
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20081231
FILED AS OF DATE:		20090209
DATE AS OF CHANGE:		20090209

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AMTECH SYSTEMS INC
		CENTRAL INDEX KEY:			0000720500
		STANDARD INDUSTRIAL CLASSIFICATION:	SPECIAL INDUSTRY MACHINERY, NEC [3559]
		IRS NUMBER:				860411215
		STATE OF INCORPORATION:			AZ
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-11412
		FILM NUMBER:		09581331

	BUSINESS ADDRESS:	
		STREET 1:		131 S CLARK DR
		CITY:			TEMPE
		STATE:			AZ
		ZIP:			85281
		BUSINESS PHONE:		6029675146

	MAIL ADDRESS:	
		STREET 1:		131 SOUTH CLARK DRIVE
		CITY:			TEMPE
		STATE:			AZ
		ZIP:			85281

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	QUARTZ ENGINEERING & MATERIALS INC
		DATE OF NAME CHANGE:	19870715
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>amtech_10q.htm
<DESCRIPTION>QUARTERLY REPORT
<TEXT>

<HTML>
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   <TITLE></TITLE>
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<P align=center><B><FONT face=serif size=4>UNITED STATES <BR></FONT></B><B><FONT face=serif size=4>SECURITIES AND EXCHANGE COMMISSION</FONT></B> <B><FONT face=serif><BR>Washington, D.C. 20549</FONT></B></P>
<P align=center><B><FONT face=serif size=5>__________<BR>FORM
10-Q</FONT></B></P>
<P align=justify>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="99%"><B><FONT face=serif size=2>(Mark
      One)</FONT></B>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
  &nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="99%">&nbsp; &nbsp; &nbsp;<FONT face=serif size=2>[X] QUARTERLY REPORT PURSUANT</FONT>&nbsp; <FONT face=serif size=2>TO SECTION</FONT>&nbsp; <FONT face=serif size=2>13</FONT>&nbsp;
      <FONT face=serif size=2>OR</FONT>&nbsp; <FONT face=serif size=2>15</FONT><FONT face=serif size=2>(d)</FONT>&nbsp; <FONT face=serif size=2>OF</FONT>&nbsp; <FONT face=serif size=2>THE</FONT>&nbsp; <FONT face=serif size=2>SECURITIES</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="99%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=2>EXCHANGE ACT OF
      1934</FONT>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</TD></TR>
  <TR>
    <TD width="99%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="99%"><FONT face=serif size=2>For the
      quarterly period ended: December 31,
      2008</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
  <TR>
    <TD width="99%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center width="99%"><FONT face=serif size=2>OR</FONT></TD></TR>
  <TR>
    <TD width="99%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="99%">&nbsp; &nbsp; &nbsp;<FONT face=serif size=2>[ ] TRANSITION REPORT PURSUANT</FONT>&nbsp; <FONT face=serif size=2>TO SECTION</FONT>&nbsp; <FONT face=serif size=2>13</FONT>&nbsp;
      <FONT face=serif size=2>OR</FONT>&nbsp; <FONT face=serif size=2>15</FONT><FONT face=serif size=2>(d)</FONT>&nbsp; <FONT face=serif size=2>OF</FONT>&nbsp; <FONT face=serif size=2>THE</FONT>&nbsp; <FONT face=serif size=2>SECURITIES</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="99%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=2>EXCHANGE ACT OF
      1934</FONT>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
  &nbsp;</TD></TR></TABLE><BR>
<P align=justify><FONT face=serif size=2>For the transition period from
________________ to ________________<BR></FONT></P>
<P align=center><FONT face=serif size=2>Commission File Number:</FONT> <U><FONT face=serif size=2>0-11412</FONT></U><FONT face=serif size=2></FONT></P>
<P align=justify>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=center width="99%" colSpan=3><B><FONT face=serif size=5>AMTECH SYSTEMS,
      INC.</FONT></B>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="99%" colSpan=3><FONT face=serif size=2>(Exact name of registrant as specified in its
    charter)</FONT>&nbsp;</TD></TR>
  <TR>
    <TD noWrap align=center width="33%">&nbsp;</TD>
    <TD noWrap align=center width="33%"></TD>
    <TD noWrap align=center width="33%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=center width="33%"><FONT face=serif size=2>Arizona</FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=center width="33%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=center width="33%"><FONT face=serif size=2>86-0411215</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="33%"><FONT face=serif size=2>(State or
      other jurisdiction of</FONT>&nbsp;</TD>
    <TD noWrap align=center width="33%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=center width="33%"><FONT face=serif size=2>(I.R.S.
      Employer</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="33%"><FONT face=serif size=2>incorporation
      or organization)</FONT>&nbsp;</TD>
    <TD noWrap align=center width="33%"></TD>
    <TD noWrap align=center width="33%"><FONT face=serif size=2>Identification
      No.)</FONT>&nbsp;</TD></TR>
  <TR>
    <TD noWrap align=center width="33%">&nbsp;</TD>
    <TD noWrap align=center width="33%"></TD>
    <TD noWrap align=center width="33%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=center width="33%"><FONT face=serif size=2>131 South Clark Drive, Tempe,
      Arizona</FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=center width="33%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=center width="33%"><FONT face=serif size=2>85281</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="33%"><FONT face=serif size=2>(Address of
      principal executive offices)</FONT>&nbsp;</TD>
    <TD noWrap align=center width="33%"></TD>
    <TD noWrap align=center width="33%"><FONT face=serif size=2>(Zip
      Code)</FONT>&nbsp;</TD></TR></TABLE>
<P align=left><FONT face=serif size=2>Registrant&#146;s telephone number, including
area code:</FONT> <U><FONT face=serif size=2>480-967-5146</FONT></U><FONT face=serif size=2></FONT></P>
<P align=left><FONT face=serif size=2>Indicate by a check mark whether the
registrant (1) has filed all reports required to be filed by Section 13 or 15(d)
of the Securities Exchange Act of 1934 during the preceding 12 months (or for
such shorter period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days. [X] Yes [
] No</FONT></P>
<P align=left><FONT face=serif size=2>Indicate by check mark whether the
registrant is a large accelerated filer, an accelerated filer, or a
non-accelerated filer. See definition of &#147;accelerated filer and large
accelerated filer&#148; in Rule 12b-2 of the Exchange Act. (Check one):</FONT></P>
<P align=justify>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD width="90%">
      <P align=justify><FONT face=serif size=2>Large accelerated filer [
      ]</FONT></P></TD>
    <TD noWrap width="10%"><FONT size=2>Accelerated filer [ X ]</FONT></TD></TR>
  <TR>
    <TD width="90%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD></TR>
  <TR>
    <TD width="90%"><FONT size=2>Non-accelerated filer [&nbsp;] (Do not check
      if a smaller reporting company)</FONT>&nbsp;</TD>
    <TD noWrap width="10%">
      <P align=justify><FONT face=serif size=2>Smaller Reporting Company&nbsp;[
      ]</FONT></P></TD></TR></TABLE>
<P></P>
<P align=left><FONT face=serif size=2>Indicate by check mark whether the
registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes [ ] No [ X ]</FONT></P>
<P align=center><FONT face=serif size=2>Shares of Common Stock outstanding as of
February 5, 2009: 9,103,673</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><FONT face=serif size=2>AMTECH SYSTEMS, INC. AND SUBSIDIARIES
<BR>TABLE OF CONTENTS </FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD align=left width="97%"></TD>
    <TD align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%"><FONT face=serif size=2>Page</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="97%" bgColor=#cceeff><B><FONT face=serif size=2>PART
      I. FINANCIAL INFORMATION</FONT></B> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=right width="1%" bgColor=#cceeff></TD></TR>
  <TR>
    <TD align=left width="97%">&nbsp;</TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="97%" bgColor=#cceeff><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT><STRONG>Item
      1.</STRONG></FONT>&nbsp;<B><FONT face=serif size=2>Condensed Consolidated
      Financial Statements</FONT></B>&nbsp; </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=right width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="97%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT>Condensed Consolidated Balance Sheets</FONT> </TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="97%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif size=2>December 31, 2008 (Unaudited) and September 30,
      2008</FONT> </TD>
    <TD align=right width="1%"></TD>
    <TD align=right width="1%"><FONT face=serif size=2>3</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="97%" bgColor=#cceeff><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT>Condensed Consolidated Statements of Operations (Unaudited)</FONT>
    </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=right width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="97%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif size=2>Three Months Ended December 31, 2008 and
      2007</FONT> </TD>
    <TD align=right width="1%" bgColor=#cceeff></TD>
    <TD align=right width="1%" bgColor=#cceeff><FONT face=serif size=2>5</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="97%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT>Condensed Consolidated Statements of Cash Flows (Unaudited)</FONT>
    </TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="97%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif size=2>Three Months Ended December 31, 2008 and
      2007</FONT> </TD>
    <TD align=right width="1%"></TD>
    <TD align=right width="1%"><FONT face=serif size=2>6</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="97%" bgColor=#cceeff><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>Notes
      to Condensed Consolidated Financial Statements (Unaudited)</FONT>&nbsp;
</TD>
    <TD align=right width="1%" bgColor=#cceeff></TD>
    <TD align=right width="1%" bgColor=#cceeff><FONT face=serif size=2>7</FONT> </TD></TR>
  <TR>
    <TD align=left width="99%" colSpan=3>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="99%" bgColor=#cceeff colSpan=3><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT><STRONG>Item
      2.</STRONG></FONT>&nbsp;<B><FONT face=serif size=2>Management&#146;s Discussion
      and Analysis of Financial Condition and Results </FONT></B></TD></TR>
  <TR>
    <TD align=left width="99%" bgColor=#cceeff colSpan=3><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><STRONG>of
      Operations</STRONG></FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="97%"><FONT face=serif>&nbsp;</FONT></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="97%" bgColor=#cceeff><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT>Caution Regarding Forward-Looking Statements </FONT></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=right width="1%" bgColor=#cceeff><FONT size=2>16</FONT><FONT size=3> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="97%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT>Overview </FONT></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="1%"><FONT size=2>17</FONT><FONT size=3>
  </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="97%" bgColor=#cceeff><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT>Results of Operations </FONT></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=right width="1%" bgColor=#cceeff><FONT size=2>17</FONT><FONT size=3> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="97%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT>Liquidity and Capital Resources</FONT> </TD>
    <TD align=right width="1%"></TD>
    <TD align=right width="1%"><FONT face=serif size=2>20<FONT size=3>
      </FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="97%" bgColor=#cceeff><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT>Off-Balance Sheet Arrangements</FONT> </TD>
    <TD align=right width="1%" bgColor=#cceeff></TD>
    <TD align=right width="1%" bgColor=#cceeff><FONT face=serif size=2>20<FONT size=3> </FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="97%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT>Contractual Obligations </FONT></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="1%"><FONT size=2>20</FONT><FONT size=3>
  </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="97%" bgColor=#cceeff><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT>Critical Accounting Policies </FONT></TD>
    <TD align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD align=right width="1%" bgColor=#cceeff><FONT size=2>21</FONT><FONT size=3> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="97%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT size=2>Impact of Recently Issued Accounting Pronouncements</FONT> </TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="1%"><FONT size=2>22</FONT> </TD></TR>
  <TR>
    <TD align=left width="97%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="1%" bgColor=#ffffff></TD>
    <TD align=right width="1%" bgColor=#ffffff></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="97%" bgColor=#cceeff><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT><STRONG>Item 3. Quantitative and
      Qualitative Disclosures About Market Risk</STRONG></FONT> </TD>
    <TD align=right width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD align=right width="1%" bgColor=#cceeff><FONT face=serif size=2>23</FONT> </TD></TR>
  <TR>
    <TD align=left width="97%">&nbsp;</TD>
    <TD align=right width="1%"></TD>
    <TD align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="97%" bgColor=#cceeff><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT><STRONG>Item 4. Controls and
      Procedures</STRONG></FONT> </TD>
    <TD align=right width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD align=right width="1%" bgColor=#cceeff><FONT face=serif size=2>23</FONT> </TD></TR>
  <TR>
    <TD align=left width="97%">&nbsp;</TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="97%" bgColor=#cceeff><B><FONT face=serif size=2>PART
      II. OTHER INFORMATION</FONT></B> </TD>
    <TD align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD align=right width="1%" bgColor=#cceeff></TD></TR>
  <TR>
    <TD align=left width="97%">&nbsp;</TD>
    <TD align=right width="1%"></TD>
    <TD align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="97%" bgColor=#cceeff><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT><STRONG>Item 6.</STRONG></FONT>
      <B><FONT face=serif size=2>Exhibits </FONT></B></TD>
    <TD align=right width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD align=right width="1%" bgColor=#cceeff><FONT face=serif size=2>24</FONT> </TD></TR>
  <TR>
    <TD align=left width="97%">&nbsp;</TD>
    <TD align=right width="1%"></TD>
    <TD align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="97%" bgColor=#cceeff><B><FONT face=serif size=2>SIGNATURES</FONT></B> </TD>
    <TD align=right width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD align=right width="1%" bgColor=#cceeff><FONT face=serif size=2>25</FONT> </TD></TR>
  <TR>
    <TD align=left width="97%">&nbsp;</TD>
    <TD align=right width="1%"></TD>
    <TD align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="97%" bgColor=#cceeff><B><FONT face=serif size=2>EXHIBIT INDEX</FONT></B> </TD>
    <TD align=right width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD align=right width="1%" bgColor=#cceeff><FONT face=serif size=2>26</FONT> </TD></TR></TABLE><BR>
<P align=center><FONT face=serif size=2>2</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><B><FONT face=serif size=2>PART I FINANCIAL
INFORMATION</FONT></B></P>
<P align=justify><B><FONT face=serif size=2>ITEM 1. Condensed Consolidated
Financial Statements</FONT></B></P>
<P align=justify><B><FONT face=serif size=2>AMTECH SYSTEMS, INC. AND
SUBSIDIARIES <BR>Condensed Consolidated Balance Sheets<BR></FONT></B><B><FONT face=serif size=2>(in thousands except share data)</FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD align=left width="90%"></TD>
    <TD align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>December 31,</FONT></B> </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>September 30,</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="90%"></TD>
    <TD align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>2008</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>2008</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="90%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=center width="4%" colSpan=2><FONT face=serif size=2>(Unaudited)</FONT> </TD>
    <TD align=center width="1%"></TD>
    <TD align=center width="1%"></TD>
    <TD align=center width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="90%"><B><FONT face=serif size=2>Assets</FONT></B> </TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="3%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="90%" bgColor=#cceeff><B><FONT face=serif size=2>Current Assets</FONT></B> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="3%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="3%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Cash and cash equivalents</FONT> </TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"><FONT face=serif size=2>$</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align=right width="3%"><FONT face=serif size=2>38,411</FONT> </TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"><FONT face=serif size=2>$</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align=right width="3%"><FONT face=serif size=2>37,501</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="90%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Restricted cash</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>489</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>970</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Accounts receivable</FONT> </TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="3%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="90%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Trade (less allowance for doubtful accounts of $639 and
      $588 at</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>14,299</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>17,639</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="90%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>December 31, 2008 and September 30, 2008,
      respectively)</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="3%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="3%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Unbilled and other</FONT> </TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="3%"><FONT face=serif size=2>7,200</FONT> </TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="3%"><FONT face=serif size=2>5,376</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="90%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Inventories</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>16,358</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>15,902</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Deferred income taxes</FONT> </TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="3%"><FONT face=serif size=2>4,700</FONT> </TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="3%"><FONT face=serif size=2>4,500</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="90%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Income taxes receivable</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>-</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>-</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Other</FONT> </TD>
    <TD align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><FONT face=serif size=2>2,210</FONT> </TD>
    <TD align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><FONT face=serif size=2>1,511</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="90%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Total current assets</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>83,667</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>83,399</FONT> </TD></TR>
  <TR>
    <TD width="100%" colSpan=7>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="90%" bgColor=#cceeff><B><FONT face=serif size=2>Property, Plant and Equipment - Net</FONT></B> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>8,314</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>8,409</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="90%"><B><FONT face=serif size=2>Intangible Assets -
      Net</FONT></B> </TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="3%"><FONT face=serif size=2>5,076</FONT> </TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="3%"><FONT face=serif size=2>4,384</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="90%" bgColor=#cceeff><B><FONT face=serif size=2>Goodwill</FONT></B> </TD>
    <TD align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>4,450</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>4,450</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="90%"><B><FONT face=serif size=2>Restricted cash -
      non-current</FONT></B> </TD>
    <TD align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><FONT face=serif size=2>677</FONT> </TD>
    <TD align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><FONT face=serif size=2>1,713</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="90%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=serif size=2>Total Assets</FONT></B> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>102,184</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>102,355</FONT>
</TD></TR></TABLE><BR>
<P align=left><FONT face=serif size=2>The accompanying notes are an integral
part of these condensed consolidated financial statements.</FONT></P>
<P align=center><FONT face=serif size=2>3</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><B><FONT face=serif size=2>AMTECH SYSTEMS, INC. AND
SUBSIDIARIES <BR>Condensed Consolidated Balance Sheets <BR></FONT></B><B><FONT face=serif size=2>(in thousands except share data)</FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD align=left width="89%"></TD>
    <TD align=left width="1%"></TD>
    <TD noWrap align=center width="6%" colSpan=3><B><FONT face=serif size=2>December 31,</FONT></B> </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=center width="2%" colSpan=2><B><FONT face=serif size=2>September 30,</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%"></TD>
    <TD align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%" colSpan=3><B><FONT face=serif size=2>2008</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="2%" colSpan=2><B><FONT face=serif size=2>2008</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%"></TD>
    <TD align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=center width="6%" colSpan=3><FONT face=serif size=2>(Unaudited)</FONT> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="89%"><B><FONT face=serif size=2>Liabilities and Stockholders'
      Equity</FONT></B> </TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="3%"></TD>
    <TD align=left width="2%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%" bgColor=#cceeff><B><FONT face=serif size=2>Current Liabilities</FONT></B> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="3%" bgColor=#cceeff></TD>
    <TD align=left width="2%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Accounts payable</FONT> </TD>
    <TD align=right width="1%"></TD>
    <TD align=left width="3%"><FONT face=serif size=2>$</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align=right width="2%"><FONT face=serif size=2>6,791</FONT> </TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="1%"></TD>
    <TD align=left width="1%"><FONT face=serif size=2>$</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align=right width="1%"><FONT face=serif size=2>6,529</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Bank
      loans and current maturities of long-term debt</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="3%" bgColor=#cceeff></TD>
    <TD align=right width="2%" bgColor=#cceeff><FONT face=serif size=2>113</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=right width="1%" bgColor=#cceeff><FONT face=serif size=2>148</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Accrued compensation and related taxes</FONT> </TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="3%"></TD>
    <TD align=right width="2%"><FONT face=serif size=2>3,912</FONT> </TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="1%"><FONT face=serif size=2>4,553</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Accrued warranty expense</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="3%" bgColor=#cceeff></TD>
    <TD align=right width="2%" bgColor=#cceeff><FONT face=serif size=2>1,331</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=right width="1%" bgColor=#cceeff><FONT face=serif size=2>1,155</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Deferred profit</FONT> </TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="3%"></TD>
    <TD align=right width="2%"><FONT face=serif size=2>6,009</FONT> </TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="1%"><FONT face=serif size=2>5,352</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Customer deposits</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="3%" bgColor=#cceeff></TD>
    <TD align=right width="2%" bgColor=#cceeff><FONT face=serif size=2>4,040</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=right width="1%" bgColor=#cceeff><FONT face=serif size=2>4,859</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Other accrued liabilities</FONT> </TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="3%"></TD>
    <TD align=right width="2%"><FONT face=serif size=2>1,548</FONT> </TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="1%"><FONT face=serif size=2>2,503</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Income taxes payable</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="3%" bgColor=#cceeff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="2%" bgColor=#cceeff><FONT face=serif size=2>1,730</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#cceeff><FONT face=serif size=2>1,060</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Total current liabilities</FONT> </TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="3%"></TD>
    <TD align=right width="2%"><FONT face=serif size=2>25,474</FONT> </TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="1%"><FONT face=serif size=2>26,159</FONT> </TD></TR>
  <TR>
    <TD width="99%" colSpan=8>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%" bgColor=#cceeff><B><FONT face=serif size=2>Income Taxes Payable Long-term</FONT></B> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="3%" bgColor=#cceeff></TD>
    <TD align=right width="2%" bgColor=#cceeff><FONT face=serif size=2>460</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=right width="1%" bgColor=#cceeff><FONT face=serif size=2>440</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%"><B><FONT face=serif size=2>Deferred Income
      Taxes Long-term</FONT></B> </TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="3%"></TD>
    <TD align=right width="2%"><FONT face=serif size=2>900</FONT> </TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="1%"><FONT face=serif size=2>940</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%" bgColor=#cceeff><B><FONT face=serif size=2>Long-Term Obligations</FONT></B> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="3%" bgColor=#cceeff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="2%" bgColor=#cceeff><FONT face=serif size=2>251</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#cceeff><FONT face=serif size=2>283</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Total liabilities</FONT> </TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="3%"></TD>
    <TD align=right width="2%"><FONT face=serif size=2>27,085</FONT> </TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="1%"><FONT face=serif size=2>27,822</FONT> </TD></TR>
  <TR>
    <TD width="99%" colSpan=8>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%" bgColor=#cceeff><B><FONT face=serif size=2>Commitments and Contingencies</FONT></B> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="3%" bgColor=#cceeff></TD>
    <TD align=left width="2%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR>
    <TD width="99%" colSpan=8>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%" bgColor=#cceeff><B><FONT face=serif size=2>Stockholders' Equity</FONT></B> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="3%" bgColor=#cceeff></TD>
    <TD align=left width="2%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Preferred stock; 100,000,000 shares authorized; none issued</FONT>
    </TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="3%">&nbsp;</TD>
    <TD align=right width="2%"><FONT face=serif size=2>-</FONT> </TD>
    <TD align=right width="1%"></TD>
    <TD align=right width="1%"></TD>
    <TD align=right width="1%"></TD>
    <TD align=right width="1%"><FONT face=serif size=2>-</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Common stock; $0.01 par value; 100,000,000 shares
      authorized;</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD align=left width="3%" bgColor=#cceeff></TD>
    <TD align=left width="2%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>shares issued and outstanding: 9,103,673 and
      9,096,048</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="3%" bgColor=#cceeff></TD>
    <TD align=left width="2%" bgColor=#cceeff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>at December 31, 2008 and September 30, 2008,
      respectively</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="3%" bgColor=#cceeff></TD>
    <TD align=right width="2%" bgColor=#cceeff><FONT face=serif size=2>91</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=right width="1%" bgColor=#cceeff><FONT face=serif size=2>91</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Additional paid-in capital</FONT> </TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="3%"></TD>
    <TD align=right width="2%"><FONT face=serif size=2>70,300</FONT> </TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="1%"><FONT face=serif size=2>70,135</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Accumulated other comprehensive income</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="3%" bgColor=#cceeff></TD>
    <TD align=right width="2%" bgColor=#cceeff><FONT face=serif size=2>(392</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT>
    </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=right width="1%" bgColor=#cceeff><FONT face=serif size=2>67</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Retained Earnings</FONT> </TD>
    <TD align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="3%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="2%"><FONT face=serif size=2>5,100</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%">&nbsp;</TD>
    <TD align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%"><FONT face=serif size=2>4,240</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Total stockholders' equity</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="3%" bgColor=#cceeff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="2%" bgColor=#cceeff><FONT face=serif size=2>75,099</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#cceeff><FONT face=serif size=2>74,533</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=serif size=2>Total Liabilities and Stockholders'
      Equity</FONT></B>&nbsp; </TD>
    <TD align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" align=left width="3%"><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" align=right width="2%"><FONT face=serif size=2>102,184</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" align=left width="1%">&nbsp;</TD>
    <TD align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" align=right width="1%"><FONT face=serif size=2>102,355</FONT> </TD></TR></TABLE><BR>
<P align=left><FONT face=serif size=2>The accompanying notes are an integral
part of these condensed consolidated financial statements.</FONT></P>
<P align=center><FONT face=serif size=2>4</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><B><FONT face=serif size=2>AMTECH SYSTEMS, INC. AND
SUBSIDIARIES <BR>Condensed Consolidated Statements of
Operations<BR></FONT></B><FONT face=serif size=2><B>(Unaudited)</B><BR></FONT><B><FONT face=serif size=2>(in thousands,
except per share data)</FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD align=left width="89%"></TD>
    <TD align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="9%" colSpan=5><B><FONT face=serif size=2>Three Months Ended December
      31,</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%"></TD>
    <TD align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>2008</FONT></B> </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%" bgColor=#cceeff><FONT face=serif size=2>Revenues, net of returns and allowances</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>17,872</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>11,741</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%"><FONT face=serif size=2>Cost of
      sales</FONT>&nbsp; </TD>
    <TD align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><FONT face=serif size=2>11,786</FONT> </TD>
    <TD align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><FONT face=serif size=2>8,181</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%" bgColor=#cceeff><FONT face=serif size=2><FONT style="BACKGROUND-COLOR: #cceeff" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Gross profit</FONT>&nbsp; </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>6,086</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>3,560</FONT> </TD></TR>
  <TR>
    <TD align=left width="89%">&nbsp;</TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="3%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%" bgColor=#cceeff><FONT face=serif size=2>Selling, general and administrative</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>4,483</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>3,302</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%"><FONT face=serif size=2>Research and
      development</FONT> </TD>
    <TD align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><FONT face=serif size=2>224</FONT> </TD>
    <TD align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><FONT face=serif size=2>233</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%" bgColor=#cceeff><FONT face=serif size=2><FONT style="BACKGROUND-COLOR: #cceeff" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Operating income</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>1,379</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>25</FONT> </TD></TR>
  <TR>
    <TD align=left width="89%">&nbsp;</TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="3%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%" bgColor=#cceeff><FONT face=serif size=2>Interest and other income, net</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>61</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>153</FONT> </TD></TR>
  <TR>
    <TD align=left width="89%">&nbsp;</TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="3%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%" bgColor=#cceeff><FONT face=serif size=2>Income
      before income taxes</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>1,440</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>178</FONT> </TD></TR>
  <TR>
    <TD align=left width="89%">&nbsp;</TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="3%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%" bgColor=#cceeff><FONT face=serif size=2>Income
      tax provision</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>580</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>70</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><STRONG>Net
      income</STRONG></FONT> </TD>
    <TD align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" align=right width="3%"><FONT face=serif size=2>860</FONT> </TD>
    <TD align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" align=right width="3%"><FONT face=serif size=2>108</FONT> </TD></TR>
  <TR>
    <TD width="99%" colSpan=7>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%" bgColor=#cceeff><B><FONT face=serif size=2>Earnings Per Share:</FONT></B> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="3%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="3%" bgColor=#cceeff></TD></TR>
  <TR>
    <TD align=left width="89%">&nbsp;</TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="3%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%" bgColor=#cceeff><FONT face=serif size=2>Basic
      income per share</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT>
    </TD>
    <TD align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>0.09</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT>
    </TD>
    <TD align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>0.01</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%"><FONT face=serif size=2>Weighted average shares
      outstanding</FONT> </TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="3%"><FONT face=serif size=2>9,098</FONT> </TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="3%"><FONT face=serif size=2>7,636</FONT> </TD></TR>
  <TR>
    <TD align=left width="89%">&nbsp;</TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="3%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%" bgColor=#cceeff><FONT face=serif size=2>Diluted
      income per share</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT>
    </TD>
    <TD align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>0.09</FONT> </TD>
    <TD align=left width="1%" bgColor=#cceeff></TD>
    <TD align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT>
    </TD>
    <TD align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>0.01</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="89%"><FONT face=serif size=2>Weighted average shares
      outstanding</FONT> </TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="3%"><FONT face=serif size=2>9,109</FONT> </TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="3%"><FONT face=serif size=2>7,818</FONT>
  </TD></TR></TABLE><BR>
<P align=left><FONT face=serif size=2>The accompanying notes are an integral
part of these condensed consolidated financial statements.</FONT><B><FONT face=serif size=2> </FONT></B></P>
<P align=center><FONT face=serif size=2>5 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><B><FONT face=serif size=2>AMTECH SYSTEMS, INC. AND
SUBSIDIARIES <BR>Condensed Consolidated Statements Of Cash
Flows<BR></FONT></B><B><FONT face=serif size=2>(Unaudited) <BR>(in
thousands)</FONT></B></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="80%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="19%" colSpan=7><B><FONT face=serif size=2>Three Months Ended December
      31,</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="9%" colSpan=3><B><FONT face=serif size=2>2008</FONT></B> </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="9%" colSpan=3><B><FONT face=serif size=2>2007</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%" bgColor=#cceeff><B><FONT face=serif size=2>Operating Activities</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="7%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Net income</FONT> </TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>860</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>108</FONT> </TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Adjustments to reconcile net income to net</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="7%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%" bgColor=#cceeff><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>cash
      provided by (used in) operating activities:</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="7%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Depreciation and amortization</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>363</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>313</FONT> </TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Write-down of inventory</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>119</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>24</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Deferred income taxes</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>(374</FONT> </TD>
    <TD noWrap align=left width="1%"><FONT size=2>)</FONT><FONT size=3>
    </FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>(398</FONT> </TD>
    <TD noWrap align=left width="1%"><FONT size=2>)<FONT size=3>
    </FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Non-cash share based compensation expense</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>166</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>102</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Other</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>66</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>53</FONT> </TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Changes in operating assets and liabilities:</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="7%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Restricted cash</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>1,466</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>(786</FONT> </TD>
    <TD noWrap align=left width="1%"><FONT size=2>)<FONT size=3>
    </FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Accounts receivable</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>890</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>3,063</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Inventories</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>(935</FONT> </TD>
    <TD noWrap align=left width="1%"><FONT size=2>)<FONT size=3>
    </FONT></FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>(2,745</FONT>
</TD>
    <TD noWrap align=left width="1%"><FONT size=2>)<FONT size=3>
    </FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Accrued income taxes</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>623</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>276</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Prepaid expenses and other assets</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>(687</FONT> </TD>
    <TD noWrap align=left width="1%"><FONT size=2>)<FONT size=3>
    </FONT></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>(5</FONT> </TD>
    <TD noWrap align=left width="1%"><FONT size=2>)<FONT size=3>
    </FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Accounts payable</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>(135</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT size=2>)<FONT size=3> </FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>(772</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT size=2>)<FONT size=3> </FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Accrued liabilities and customer deposits</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>(2,019</FONT>
</TD>
    <TD noWrap align=left width="1%"><FONT size=2>)<FONT size=3>
    </FONT></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>(87</FONT> </TD>
    <TD noWrap align=left width="1%"><FONT size=2>)<FONT size=3>
    </FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Deferred profit</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>736</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>(833</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff><FONT size=2>)<FONT size=3> </FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Net cash provided by (used in) operating
      activities</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%"><FONT face=serif size=2>1,139</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%"><FONT face=serif size=2>(1,687</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2>)<FONT size=3> </FONT></FONT></TD></TR>
  <TR>
    <TD width="98%" colSpan=7>&nbsp; </TD>
    <TD align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%" bgColor=#cceeff><B><FONT face=serif size=2>Investing Activities</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="7%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Purchases of property, plant and equipment</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>(222</FONT> </TD>
    <TD noWrap align=left width="1%"><FONT size=2>)<FONT size=3>
    </FONT></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>(1,193</FONT>
</TD>
    <TD noWrap align=left width="1%"><FONT size=2>)<FONT size=3>
    </FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Increase in restricted cash long-term</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>(1,952</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT size=2>)<FONT size=3> </FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Payment for licensing agreement</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>(300</FONT> </TD>
    <TD noWrap align=left width="1%"><FONT size=2>)<FONT size=3>
    </FONT></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT size=2>-</FONT> </TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Investment in R2D</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>-</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>(6,415</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff><FONT size=2>)<FONT size=3> </FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Net cash used in investing activities</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%"><FONT face=serif size=2>(522</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2>)<FONT size=3> </FONT></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%"><FONT face=serif size=2>(9,560</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2>)<FONT size=3> </FONT></FONT></TD></TR>
  <TR>
    <TD width="98%" colSpan=7>&nbsp; </TD>
    <TD align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%" bgColor=#cceeff><B><FONT face=serif size=2>Financing Activities</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="7%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Proceeds from issuance of common stock</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>-</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>33,827</FONT>
</TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Payments on long-term obligations</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>(62</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT size=2>)<FONT size=3> </FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>(59</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT size=2>)<FONT size=3> </FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Excess tax benefit of stock options</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%"><FONT face=serif size=2>-</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%"><FONT face=serif size=2>80</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Net cash provided by (used in) financing
      activities</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>(62</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff><FONT size=2>)<FONT size=3> </FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>33,848</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR>
    <TD width="98%" colSpan=7>&nbsp; </TD>
    <TD align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%" bgColor=#cceeff><B><FONT face=serif size=2>Effect of Exchange Rate Changes on Cash</FONT></B>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>355</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>(225</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff><FONT size=2>)<FONT size=3> </FONT></FONT></TD></TR>
  <TR>
    <TD width="98%" colSpan=7>&nbsp; </TD>
    <TD align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%" bgColor=#cceeff><B><FONT face=serif size=2>Net Increase in Cash and Cash Equivalents</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>910</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>22,376</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%"><B><FONT face=serif size=2>Cash and Cash
      Equivalents, Beginning of Period</FONT></B>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%"><FONT face=serif size=2>37,501</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%"><FONT face=serif size=2>18,370</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%" bgColor=#cceeff><B><FONT face=serif size=2>Cash and Cash Equivalents, End of Period</FONT></B>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;</FONT>38,411</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;</FONT>40,746</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR>
    <TD width="98%" colSpan=7>&nbsp;&nbsp; </TD>
    <TD align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%" bgColor=#cceeff><B><FONT face=serif size=2>Supplemental Cash Flow Information:</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="7%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Interest paid</FONT> </TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>8</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>118</FONT> </TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Income tax refunds</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>131</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT size=2>-</FONT>
</TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Income tax payments</FONT> </TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>345</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>104</FONT> </TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%" bgColor=#cceeff><B><FONT face=serif size=2>Supplemental Non-cash Investing Activities:</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="7%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Transfer inventory to capital equipment</FONT> </TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>116</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%"><FONT size=2>-</FONT> </TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Intangible assets funded with current liabilities</FONT>
    </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>500</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT size=2>-</FONT><FONT size=3> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR></TABLE><BR>
<P align=justify><FONT face=serif size=2>The accompanying notes are an integral
part of these condensed consolidated financial statements.</FONT></P>
<P align=center><FONT face=serif><FONT size=2>6</FONT>&nbsp;</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><B><FONT face=serif size=2>AMTECH SYSTEMS, INC. AND
SUBSIDIARIES <BR></FONT></B><B><FONT face=serif size=2>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS <BR>THREE MONTHS ENDED DECEMBER 31, 2008 AND
2007 <BR>(UNAUDITED) </FONT></B></P>
<P align=justify><B><FONT face=serif size=2>1. Basis of
Presentation</FONT></B><FONT face=serif size=2> </FONT></P>
<P align=justify><B><FONT face=serif size=2>Nature of Operations and Basis of
Presentation</FONT></B><FONT face=serif size=2> &#150; Amtech Systems, Inc. (the
&#147;Company&#148;) designs, assembles, sells and installs capital equipment and related
consumables used in the manufacture of solar cells, semiconductors, and wafers
of various materials, primarily for the solar and semiconductor industries. The
Company sells these products worldwide, particularly in Asia, the United States
and Europe. In addition, the Company provides semiconductor manufacturing
support services. </FONT></P>
<P align=justify><FONT face=serif size=2>The Company serves niche markets in
industries that are experiencing rapid technological advances, and which
historically have been very cyclical. Therefore, future profitability and growth
depend on the Company&#146;s ability to develop or acquire and market profitable new
products, and on its ability to adapt to cyclical trends. </FONT></P>
<P align=justify><FONT face=serif size=2>The accompanying unaudited condensed
consolidated financial statements have been prepared pursuant to the rules and
regulations of the Securities and Exchange Commission (the &#147;SEC&#148;), and
consequently do not include all disclosures normally required by U.S. generally
accepted accounting principles. In the opinion of management, the accompanying
unaudited interim condensed consolidated financial statements contain all
adjustments necessary, all of which are of a normal recurring nature, to present
fairly our financial position, results of operations and cash flows. Certain
information and note disclosures normally included in financial statements have
been condensed or omitted pursuant to the rules and regulations of the SEC.
These condensed consolidated financial statements should be read in conjunction
with the audited consolidated financial statements and notes thereto included in
our Annual Report on Form 10-K for the fiscal year ended September 30, 2008.
</FONT></P>
<P align=justify><FONT face=serif size=2>The consolidated results of operations
for the three months ended December 31, 2008, are not necessarily indicative of
the results to be expected for the full fiscal year. </FONT></P>
<P align=justify><B><FONT face=serif size=2>Reclassifications - </FONT></B><FONT face=serif size=2>Certain reclassifications have been made in the accompanying
consolidated financial statements for fiscal 2008 conform to the 2009
presentation. These reclassifications did not have a material effect on the
Company&#146;s financial statements.</FONT><B><FONT face=serif size=2>
</FONT></B></P>
<P align=justify><B><FONT face=serif size=2>Use of Estimates &#150; </FONT></B><FONT face=serif size=2>The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results could differ
from those estimates. </FONT></P>
<P align=justify><B><FONT face=serif size=2>Revenue
Recognition</FONT></B><B><I><FONT face=serif size=2> &#150; </FONT></I></B><FONT face=serif size=2>Revenue is recognized upon shipment of the Company&#146;s proven
technology equal to the sales price less the greater of (i) the fair value of
undelivered services and (ii) the contingent portion of the sales price, which
is generally 10-20% of the total contract price. The entire cost of the
equipment relating to proven technology is recorded upon shipment. The remaining
contractual revenue, deferred costs and installation costs are recorded upon
successful installation of the product. </FONT></P>
<P align=justify><FONT face=serif size=2>For purposes of revenue recognition,
proven technology means the Company has a history of at least two successful
installations. New technology systems are those systems with respect to which
the Company cannot demonstrate that it can meet the provisions of customer
acceptance at the time of shipment. The full amount of revenue and costs of new
technology shipments is recognized upon the completion of installation at the
customers&#146; premises and acceptance of the product by the customer. </FONT></P>
<P align=justify><FONT face=serif size=2>Revenue from services is recognized as
the services are performed. Revenue from prepaid service contracts is recognized
ratably over the life of the contract. Revenue from spare parts is recorded upon
shipment. </FONT></P>
<P align=center><FONT face=serif size=2>7</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<P><PAGE>
<P><FONT size=2><STRONG>Deferred Profit</STRONG><FONT face=serif> &#150; Revenue
deferred pursuant to the Company&#146;s revenue recognition policy, net of the
related deferred costs, if any, is recorded as deferred profit in current
liabilities. The components of deferred profit are as follows:
</FONT></FONT></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="82%">&nbsp; </TD>
    <TD noWrap align=center width="8%" colSpan=2><B><FONT face=serif size=2>December 31,</FONT></B> </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=center width="8%" colSpan=2><B><FONT face=serif size=2>September 30,</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="8%" colSpan=2><B><FONT face=serif size=2>2008</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="8%" colSpan=2><B><FONT face=serif size=2>2008</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%">&nbsp; </TD>
    <TD noWrap align=center width="17%" colSpan=5><B><FONT face=serif size=1>(dollars in thousands)</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%" bgColor=#cceeff><FONT face=serif size=2>Deferred revenues</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>8,846</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>6,934</FONT>
  </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%"><FONT face=serif size=2>Deferred
      costs</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%"><FONT face=serif size=2>2,837</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%"><FONT face=serif size=2>1,582</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%" bgColor=#cceeff><FONT face=serif size=2>Deferred profit</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>6,009</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>5,352</FONT>
</TD></TR></TABLE><BR>
<P align=justify><B><FONT face=serif size=2>Concentrations of Credit Risk &#150;
</FONT></B><FONT face=serif size=2>Financial instruments that potentially
subject the Company to significant concentrations of credit risk consist
principally of trade accounts receivable. The Company&#146;s customers, located
throughout the world, consist of manufacturers of solar cells, semiconductors,
semiconductor wafers and MEMS. Credit risk is managed by performing ongoing
credit evaluations of the customers&#146; financial condition, by requiring
significant deposits where appropriate, and by actively monitoring collections.
Letters of credit are required of certain customers depending on the size of the
order, type of customer or its creditworthiness, and its country of domicile.
Reserves for potentially uncollectible receivables are maintained based on an
assessment of collectibility.</FONT></P>
<P align=justify><FONT face=serif size=2>As of December 31, 2008, receivables
from two customers individually accounted for 18% and 12% of total accounts
receivable.</FONT></P>
<P align=justify><B><FONT face=serif size=2>Restricted Cash</FONT></B><FONT face=serif size=2> &#150;</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>Current restricted cash of $0.5 million as of December 31, 2008 consists
of bank guarantees. The bank guarantees are required by certain customers from
whom deposits have been received in advance of shipment. Current restricted cash
of $1.0 million as of September 30, 2008 consists of bank guarantees in excess
of our European overdraft facility that was terminated in the first quarter of
fiscal 2009.</FONT><B><FONT face=serif size=2> </FONT></B></P>
<P align=justify><B><FONT face=serif size=2>Accounts Receivable - Unbilled and
Other</FONT></B><FONT face=serif size=2> &#150; Unbilled and other accounts
receivable consist mainly of the contingent portion of the sales price that is
not collectible until successful installation of the product. These amounts are
generally billed upon final acceptance by our customers. The majority of these
amounts are offset by balances included in deferred profit.</FONT></P>
<P align=justify><B><FONT face=serif size=2>Inventories</FONT></B><FONT face=serif size=2> &#150; Inventories are stated at the lower of cost or net
realizable value. Costs for approximately 80% of inventory are determined on an
average cost basis with the remainder determined on a first-in, first-out (FIFO)
basis. The components of inventories are as follows:</FONT></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="83%">&nbsp; </TD>
    <TD noWrap align=center width="8%" colSpan=2><B><FONT face=serif size=2>December 31,</FONT></B> </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=center width="8%" colSpan=2><B><FONT face=serif size=2>September 30,</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="8%" colSpan=2><B><FONT face=serif size=2>2008</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="8%" colSpan=2><B><FONT face=serif size=2>2008</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%">&nbsp; </TD>
    <TD noWrap align=center width="17%" colSpan=5><B><FONT face=serif size=1>(dollars in thousands)</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#cceeff><FONT face=serif size=2>Purchased parts and raw materials</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>10,448</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>9,776</FONT>
  </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%"><FONT face=serif size=2>Work-in-process</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>5,069</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>5,057</FONT>
  </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#cceeff><FONT face=serif size=2>Finished goods</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>841</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>1,069</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="7%"><FONT face=serif size=2>16,358</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="7%"><FONT face=serif size=2>15,902</FONT> </TD></TR></TABLE><BR>
<P align=justify><B><FONT face=serif size=2>Property, Plant and
Equipment</FONT></B><FONT face=serif size=2> &#150; Property, plant and equipment are
recorded at cost. Maintenance and repairs are charged to expense as incurred.
The cost of property retired or sold and the related accumulated depreciation
are removed from the applicable accounts when disposition occurs and any gain or
loss is recognized. Depreciation is computed using the straight-line method.
Useful lives for equipment, machinery and leasehold improvements range from
three to seven years; for furniture and fixtures from five to 10 years; and for
buildings 20 years.</FONT></P>
<P align=justify><FONT face=serif size=2>The following is a summary of property,
plant and equipment: </FONT></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="80%">&nbsp; </TD>
    <TD noWrap align=center width="9%" colSpan=3><B><FONT face=serif size=2>December 31,</FONT></B> </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=center width="9%" colSpan=3><B><FONT face=serif size=2>September 30,</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="9%" colSpan=3><B><FONT face=serif size=2>2008</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="9%" colSpan=3><B><FONT face=serif size=2>2008</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%">&nbsp; </TD>
    <TD noWrap align=center width="19%" colSpan=7><B><FONT face=serif size=1>(dollars in thousands)</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%" bgColor=#cceeff><FONT face=serif size=2>Land, building and leasehold improvements</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>6,860</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>6,916</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%"><FONT face=serif size=2>Equipment and
      machinery</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>3,788</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>3,654</FONT> </TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%" bgColor=#cceeff><FONT face=serif size=2>Furniture and fixtures</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>3,300</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>3,306</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>13,948</FONT>
</TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>13,876</FONT>
</TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%" bgColor=#cceeff><FONT face=serif size=2>Accumulated depreciation and amortization</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>(5,634</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff><FONT size=2>)</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>(5,467</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff><FONT size=2>)</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="7%"><FONT face=serif size=2>8,314</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="7%"><FONT face=serif size=2>8,409</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%"></TD></TR></TABLE><BR>
<P align=center><FONT face=serif size=2>8</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><B><FONT face=serif size=2>Goodwill - </FONT></B><FONT face=serif size=2>Goodwill and intangible assets with indefinite lives are not
subject to amortization, but are tested for impairment at least annually. The
Company accounts for goodwill under the provisions of Statement of Financial
Accounting Standards (&#147;SFAS&#148;) No. 142. Accordingly, goodwill is reviewed for
impairment on an annual basis, typically at the end of the fiscal year, or more
frequently if circumstances dictate. </FONT></P>
<P align=justify><B><FONT face=serif size=2>Intangibles</FONT></B><FONT face=serif size=2> &#150; Intangible assets are capitalized and amortized over 2 to
15 years if the life is determinable. If the life is not determinable,
amortization is not recorded.</FONT></P>
<P align=justify><FONT face=serif size=2>In November the Company entered into a
license agreement with PST Co., LTD (&#147;PST&#148;)., based in Korea, to market PST&#146;s
existing and future proprietary PSG (phosphorus silicate glass)</FONT><FONT face=serif> </FONT><FONT face=serif size=2>dry etch systems.</FONT></P>
<P align=justify><FONT face=serif size=2>The royalty free, 10-year license
agreement grants Amtech exclusive marketing rights throughout the world, with
the exception of Korea and one Japanese customer with respect to which PST
retains marketing rights. In consideration for the licensed rights, Amtech will
pay $0.5 million and enter into a manufacturing agreement with PST. </FONT></P>
<P align=justify><FONT face=serif size=2>The following is a summary of
intangibles: </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="73%">&nbsp; </TD>
    <TD noWrap align=center width="7%">&nbsp; </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=center width="9%" colSpan=3><B><FONT face=serif size=2>December 31,</FONT></B> </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=center width="9%" colSpan=3><B><FONT face=serif size=2>September 30,</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="7%"><B><FONT face=serif size=2>Useful Life</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="9%" colSpan=3><B><FONT face=serif size=2>2008</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="9%" colSpan=3><B><FONT face=serif size=2>2008</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%">&nbsp; </TD>
    <TD noWrap align=center width="27%" colSpan=9><B><FONT face=serif size=1>(dollars in thousands)</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%" bgColor=#cceeff><FONT face=serif size=2>Trademarks</FONT> </TD>
    <TD noWrap align=center width="7%" bgColor=#cceeff><FONT face=serif size=2>Indefinite</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>592</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>592</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%"><FONT face=serif size=2>Non-compete
      agreements</FONT> </TD>
    <TD noWrap align=center width="7%"><FONT face=serif size=2>8-10
      years</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>524</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>524</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%" bgColor=#cceeff><FONT face=serif size=2>Customer lists</FONT> </TD>
    <TD noWrap align=center width="7%" bgColor=#cceeff><FONT face=serif size=2>10-15 years</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>1,195</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>1,195</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%"><FONT face=serif size=2>Technology</FONT> </TD>
    <TD noWrap align=center width="7%"><FONT face=serif size=2>4-10
      years</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>1,822</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>1,924</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%" bgColor=#cceeff><FONT face=serif size=2>Licenses</FONT> </TD>
    <TD noWrap align=center width="7%" bgColor=#cceeff><FONT face=serif size=2>10 years</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>1,500</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>700</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%"><FONT face=serif size=2>Other</FONT> </TD>
    <TD noWrap align=center width="7%"><FONT face=serif size=2>2-10
      years</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%"><FONT face=serif size=2>94</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%"><FONT face=serif size=2>94</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="7%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>5,727</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>5,029</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%"><FONT face=serif size=2>Accumulated
      amortization</FONT> </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%"><FONT face=serif size=2>(651</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%"><FONT face=serif size=2>(645</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="7%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>5,076</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>4,384</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD></TR></TABLE><BR>
<P align=justify><B><FONT face=serif size=2>Restricted Cash &#150;
Non-current</FONT></B><FONT face=serif size=2> &#150; Restricted cash &#150; non-current
consists of cash in an escrow account related to contingent payments to be paid
to the sellers of R2D upon fulfillment of certain requirements. The amount of
future contingent payments earned will be allocated to goodwill.</FONT></P>
<P align=justify><B><FONT face=serif size=2>Warranty &#150; </FONT></B><FONT face=serif size=2>A limited warranty is provided free of charge, generally for
periods of 12 to 24 months to all purchasers of the Company&#146;s new products and
systems. Accruals are recorded for estimated warranty costs at the time revenue
is recognized. </FONT></P>
<P align=justify><FONT face=serif size=2>The following is a summary of activity
in accrued warranty expense: </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="80%">&nbsp; </TD>
    <TD noWrap align=center width="19%" colSpan=7><B><FONT face=serif size=2>Three Months Ended December 31,</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="9%" colSpan=3><B><FONT face=serif size=2>2008</FONT></B> </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="9%" colSpan=3><B><FONT face=serif size=2>2007</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%">&nbsp; </TD>
    <TD noWrap align=center width="19%" colSpan=7><B><FONT face=serif size=1>(dollars in thousands)</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%" bgColor=#cceeff><FONT face=serif size=2>Beginning balance</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>1,155</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>256</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%"><FONT face=serif size=2>Warranty
      expenditures</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>(151</FONT> </TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(110</FONT> </TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%" bgColor=#cceeff><FONT face=serif size=2>Provision</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>327</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>81</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%"><FONT face=serif size=2>Acquired through
      business acquisitions</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%"><FONT face=serif size=2>-</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%"><FONT face=serif size=2>247</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%" bgColor=#cceeff><FONT face=serif size=2>Ending balance</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>1,331</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>474</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD></TR></TABLE><BR>
<P align=center><FONT face=serif><FONT size=2>9</FONT>&nbsp;</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><FONT face=serif size=2><STRONG>Stock-Based Compensation -
</STRONG><FONT face=serif size=2>On October 1, 2005, the Company adopted SFAS
No. 123 (R), &#147;Share-Based Payment&#148; (&#147;SFAS 123 (R)&#148;) and Staff Accounting
Bulletin 107, &#147;Share-Based Payment.&#148; SFAS 123 (R) requires the Company to
measure compensation costs relating to share-based payment transactions based
upon the grant-date fair value of the award. Those costs are recognized as
expense over the requisite service period, which is generally the vesting
period. The Company has elected the modified prospective application method of
reporting; therefore, prior periods were not restated. Under the modified
prospective method, this statement was applied to new awards granted after the
time of adoption, as well as to the unvested portion of previously granted
awards for which the requisite service had not been rendered as of October 1,
2005. SFAS 123 (R) also requires the benefits of tax deductions in excess of
recognized compensation cost to be reported as cash flow from financing
activities rather </FONT>than as cash flow from operating activities. Our
stock-based compensation plans are summarized in the table below: </FONT></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="70%">&nbsp; </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=center width="6%"><B><FONT face=serif size=1>Shares</FONT></B> </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=center width="7%"><B><FONT face=serif size=1>Shares</FONT></B> </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=center width="6%">&nbsp; </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=center width="6%"><B><FONT face=serif size=1>Plan</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="70%"><B><FONT face=serif size=1>Name of Plan</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%"><B><FONT face=serif size=1>Authorized</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="7%"><B><FONT face=serif size=1>Available</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%"><B><FONT face=serif size=1>Options Outstanding</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%"><B><FONT face=serif size=1>Expiration</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="70%" bgColor=#cceeff><FONT face=serif size=1>2007 Employee Stock Incentive Plan</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=right width="6%" bgColor=#cceeff><FONT face=serif size=1>500,000</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=1>119,187</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="6%" bgColor=#cceeff><FONT face=serif size=1>250,313</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=right width="6%" bgColor=#cceeff><FONT face=serif size=1>Apr. 2017</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="70%"><FONT face=serif size=1>1998 Employee
      Stock Option Plan</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="6%"><FONT face=serif size=1>500,000</FONT>
    </TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=1>-</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="6%"><FONT face=serif size=1>335,490</FONT>
    </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="6%"><FONT face=serif size=1>Jan. 2008</FONT>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="70%" bgColor=#cceeff><FONT face=serif size=1>Non-Employee Directors Stock Option Plan</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="6%" bgColor=#cceeff><FONT face=serif size=1>200,000</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=1>58,600</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%" bgColor=#cceeff><FONT face=serif size=1>64,000</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="6%" bgColor=#cceeff><FONT face=serif size=1>Jul. 2015</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="70%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="6%">&nbsp; </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="7%"><FONT face=serif size=1>177,787</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="6%"><FONT face=serif size=1>649,803</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="6%">&nbsp; </TD></TR></TABLE><BR>
<P align=justify><FONT face=serif size=2>Stock-based compensation expense
recognized under SFAS 123 (R) reduced the Company&#146;s results of operations as
follows: </FONT></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="81%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="19%" colSpan=7><B><FONT face=serif size=2>Three Months Ended December
      31,</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="9%" colSpan=3><B><FONT face=serif size=2>2008</FONT></B> </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="9%" colSpan=3><STRONG><FONT size=2>2007</FONT></STRONG> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%">&nbsp; </TD>
    <TD noWrap align=center width="19%" colSpan=7><FONT face=serif size=2>(dollars in thousands, except per share amounts)</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#cceeff><FONT face=serif size=2>Effect on income before income taxes (1)</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(166</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(102</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"><FONT face=serif size=2>Effect on net
      income</FONT> </TD>
    <TD noWrap align=left width="1%"><FONT size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>(135</FONT> </TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>(89</FONT> </TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#cceeff><FONT face=serif size=2>Effect on basic income per share</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>(0.01</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>(0.01</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"><FONT face=serif size=2>Effect on
      diluted income per share</FONT> </TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>(0.01</FONT> </TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>(0.01</FONT> </TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>
  </TD></TR></TABLE><BR>
<P align=justify><FONT face=serif size=1>(1)&nbsp;&nbsp;&nbsp; &nbsp;Stock-based
compensation expense is included in selling, general and administrative
expenses.</FONT></P>
<P align=justify><FONT face=serif size=2>Qualified stock options issued under
the terms of the plans have, or will have, an exercise price equal to or greater
than the fair market value of the common stock at the date of the option grant
and expire no later than 10 years from the date of grant, with the most recent
grant expiring in 2018. Under the terms of the 1998 Employee Stock Option Plan,
nonqualified stock options may also be issued. Options issued by the Company
vest over 1 to 5 years.</FONT></P>
<P align=justify><FONT face=serif size=2>The stock option transactions and the
options outstanding are summarized as follows: </FONT></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="63%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="37%" colSpan=13><B><FONT face=serif size=2>Three Months Ended December
      31,</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="63%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="18%" colSpan=6><B><FONT face=serif size=2>2008</FONT></B> </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="18%" colSpan=6><B><FONT face=serif size=2>2007</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="63%">&nbsp; </TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="7%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=center width="8%" colSpan=2><STRONG><FONT size=2>Weighted</FONT></STRONG> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="7%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=center width="8%" colSpan=2><B><FONT face=serif size=2>Weighted</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="63%">&nbsp; </TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="7%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="8%" colSpan=2><B><FONT face=serif size=2>Average</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="7%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="8%" colSpan=2><B><FONT face=serif size=2>Average</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="63%">&nbsp; </TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="7%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="8%" colSpan=2><B><FONT face=serif size=2>Exercise</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="7%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="8%" colSpan=2><B><FONT face=serif size=2>Exercise</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="63%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="9%" colSpan=3><B><FONT face=serif size=2>Options</FONT></B> </TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="8%" colSpan=2><B><FONT face=serif size=2>Price</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="9%" colSpan=3><B><FONT face=serif size=2>Options</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="8%" colSpan=2><B><FONT face=serif size=2>Price</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="63%" bgColor=#cceeff><FONT face=serif size=2>Outstanding at beginning of period</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>487,053</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>8.39</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>450,303</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>6.44</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="63%"><FONT face=serif size=2>Granted</FONT>
    </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>163,000</FONT>
    </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>3.80</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>85,000</FONT>
</TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>14.79</FONT>
  </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="63%" bgColor=#cceeff><FONT face=serif size=2>Exercised</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT size=2>-</FONT>
</TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>(50,875</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>5.15</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="63%"><FONT face=serif size=2>Forfeited</FONT>
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%"><FONT face=serif size=2>(250</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2>)</FONT><FONT size=3> </FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>7.00</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%"><FONT face=serif size=2>(500</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>7.00</FONT>
  </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="63%" bgColor=#cceeff><FONT face=serif size=2>Outstanding at end of period</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>649,803</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>7.24</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>483,928</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>8.04</FONT> </TD></TR>
  <TR>
    <TD width="63%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" width="7%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" width="7%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="63%" bgColor=#cceeff><FONT face=serif size=2>Exercisable at end of period</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>296,892</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>7.15</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>222,809</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>6.35</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="63%"><FONT face=serif size=2>Weighted average
      fair value of options</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="63%" bgColor=#cceeff><FONT face=serif size=2>granted during the period</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>2.29</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="7%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%" bgColor=#cceeff><FONT face=serif size=2>8.70</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="7%" bgColor=#cceeff>&nbsp;
</TD></TR></TABLE><BR>
<P align=center><FONT face=serif size=2>10</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P><FONT face=serif size=2>The fair value of options was estimated at the date
of grant using the Black-Scholes option pricing model with the following
assumptions:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="77%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="22%" colSpan=3><B><FONT face=serif size=2>Three Months Ended December
      31,</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="10%"><B><FONT face=serif size=2>2008</FONT></B></TD>
    <TD noWrap align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="10%"><B><FONT face=serif size=2>2007</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%" bgColor=#cceeff><FONT face=serif size=2>Risk free interest rate</FONT>&nbsp;</TD>
    <TD noWrap align=center width="10%" bgColor=#cceeff><FONT face=serif size=2>1.82%</FONT></TD>
    <TD noWrap align=center width="2%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=center width="10%" bgColor=#cceeff><FONT face=serif size=2>3.45%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%"><FONT face=serif size=2>Expected
      life</FONT>&nbsp;</TD>
    <TD noWrap align=center width="10%"><FONT face=serif size=2>6
    years</FONT></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="10%"><FONT face=serif size=2>6
    years</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%" bgColor=#cceeff><FONT face=serif size=2>Dividend rate</FONT>&nbsp;</TD>
    <TD noWrap align=center width="10%" bgColor=#cceeff><FONT face=serif size=2>0%</FONT></TD>
    <TD noWrap align=center width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=center width="10%" bgColor=#cceeff><FONT face=serif size=2>0%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%"><FONT face=serif size=2>Volatility</FONT>&nbsp;</TD>
    <TD noWrap align=center width="10%"><FONT face=serif size=2>66%</FONT></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="10%"><FONT face=serif size=2>61%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%" bgColor=#cceeff><FONT face=serif size=2>Forfeiture rate</FONT>&nbsp;</TD>
    <TD noWrap align=center width="10%" bgColor=#cceeff><FONT face=serif size=2>8%</FONT></TD>
    <TD noWrap align=center width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=center width="10%" bgColor=#cceeff><FONT face=serif size=2>9%</FONT></TD></TR></TABLE><BR>
<P align=justify><FONT face=serif size=2>To estimate expected lives for this
valuation, it was assumed that options will be exercised at varying schedules
after becoming fully vested. In accordance with SFAS 123 (R), forfeitures have
been estimated at the time of grant and will be revised, if necessary, in
subsequent periods if actual forfeitures differ from those estimates.
Forfeitures were estimated based upon historical experience. Fair value
computations are highly sensitive to the volatility factor assumed; the greater
the volatility, the higher the computed fair value of the options
granted.</FONT></P>
<P align=justify><FONT face=serif size=2>There were 163,000 and 85,000 options
granted during the three months ended December 31, 2008 and 2007, respectively.
Total fair value of options granted was approximately $373,000 and $740,000 for
the three months ended December 31, 2008 and 2007, respectively.</FONT></P>
<P align=justify><FONT face=serif size=2>In December 2007, we began awarding
restricted shares under the existing share-based compensation plans. Our
restricted share-awards vest in equal annual installments over a four-year year
period. The total value of these awards is expensed on a ratable basis over the
service period of the employees receiving the grants. The &#147;service period&#148; is
the time during which the employees receiving grants must remain employees for
the shares granted to fully vest.</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="70%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="77%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="22%" colSpan=10><B><FONT face=serif size=2>Three Months Ended December
      31,</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="10%" colSpan=5><B><FONT face=serif size=2>2008</FONT></B></TD>
    <TD noWrap align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="10%" colSpan=4><B><FONT face=serif size=2>2007</FONT></B></TD></TR>
  <TR>
    <TD width="99%" colSpan=11>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%">&nbsp;</TD>
    <TD noWrap align=center width="4%" colSpan=2>&nbsp;</TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Weighted</FONT></B></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="4%">&nbsp;</TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Weighted</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%">&nbsp;</TD>
    <TD noWrap align=center width="4%" colSpan=2>&nbsp;</TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Average</FONT></B></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="4%">&nbsp;</TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Average</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%">&nbsp;</TD>
    <TD noWrap align=center width="4%" colSpan=2>&nbsp;</TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Grant Date</FONT></B></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="4%">&nbsp;</TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Grant Date</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Awards</FONT></B></TD>
    <TD noWrap align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Fair Value</FONT></B></TD>
    <TD noWrap align=center width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%"><B><FONT face=serif size=2>Options</FONT></B></TD>
    <TD noWrap align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Fair Value</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%" bgColor=#cceeff><FONT face=serif size=2>Beginning Outstanding</FONT>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>30,500</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>14.79</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT size=2>-<FONT size=3></FONT></FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT size=2>$</FONT><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT size=2>-<FONT size=3></FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%"><FONT face=serif size=2>Awarded</FONT>&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>100,000</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>3.80</FONT></TD>
    <TD noWrap align=right width="2%"></TD>
    <TD noWrap align=right width="4%">&nbsp; &nbsp; &nbsp;<FONT face=serif size=2>31,500</FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>14.79</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%" bgColor=#cceeff><FONT face=serif size=2>Released</FONT>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(7,625</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT>&nbsp;</TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>14.79</FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT size=2>-<FONT size=3></FONT></FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT size=2>-<FONT size=3></FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%"><FONT face=serif size=2>Forfeited</FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>-<FONT size=3></FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT size=2>-<FONT size=3></FONT></FONT></TD>
    <TD noWrap align=right width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT size=2>-<FONT size=3></FONT></FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT size=2>-<FONT size=3></FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%" bgColor=#cceeff><FONT face=serif size=2>Ending Outstanding</FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>122,875</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>7.24</FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#cceeff>&nbsp; &nbsp; &nbsp;<FONT face=serif size=2>31,500</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>14.79</FONT></TD></TR></TABLE><BR>
<P align=justify><B><FONT face=serif size=2>Impact of Recently Issued Accounting
Pronouncements</FONT></B><FONT face=serif></FONT></P>
<P align=justify><FONT face=serif size=2>In April 2008, the Financial Accounting
Standards Board (FASB) issued Staff Position (&#147;FSP&#148;) No. 142-3 &#147;Determination of
the Useful Life of Intangible Assets (&#147;FSP No. 142-3&#148;). FSP No. 142-3 amends the
factors that should be considered in developing renewal or extension assumptions
used to determine the useful life of a recognized intangible asset under SFAS
No. 142 &#147;Goodwill and Other Intangible Assets&#148;. FSP No. 142-3 is effective for
the Company&#146;s quarter beginning October 1, 2009. The Company is currently
evaluating the impact that FSP No. 142-3 will have on its consolidated financial
statements.</FONT></P>
<P align=justify><FONT face=serif size=2>In September 2006, the FASB issued SFAS
No. 157, &#147;Fair Value Measurements&#148;. SFAS No. 157 defines fair value, establishes
a formal framework for measuring fair value and expands disclosures about fair
value measurements. SFAS No. 157 was effective for the Company&#146;s fiscal year
beginning October 1, 2008. The effect of implementing SFAS 157 did not have a
material impact on the Company&#146;s financial position or results of
operations.</FONT></P>
<P align=center><FONT face=serif size=2>11</FONT><FONT face=serif></FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><FONT face=serif size=2>In December 2007, the FASB issued SFAS
No. 141(R), &#147;Business Combinations&#148;. This Statement replaces SFAS No. 141,
(Statement 141) Business Combinations. SFAS No. 141(R) retains the fundamental
requirements in Statement 141 that the acquisition method of accounting (which
Statement 141 called the purchase method) be used </FONT><FONT face=serif size=2>for all business combinations and for an acquirer to be identified for
each business combination. SFAS No. 141(R) also establishes principles and
requirements for how the acquirer: a) recognizes and measures in its financial
statements the identifiable assets acquired, the liabilities assumed, and any
noncontrolling interest in the acquiree; b) recognizes and measures the goodwill
acquired in the business combination or a gain from a bargain purchase and c)
determines what information to disclose to enable users of the financial
statements to evaluate the nature and financial effects of the business
combination. SFAS No. 141(R) will apply prospectively to business combinations
for which the acquisition date is on or after Company&#146;s fiscal year beginning
October 1, 2009. While the Company has not yet evaluated the impact, if any,
that SFAS No. 141(R) will have on its consolidated financial statements, the
Company will be required to expense costs related to any acquisitions after
September 30, 2009. </FONT></P>
<P align=justify><B><FONT face=serif size=2>2. Income Taxes </FONT></B></P>
<P align=justify><FONT face=serif size=2>The quarterly income tax provision is
calculated using an estimated annual effective tax rate, based upon expected
annual income, permanent items, statutory tax rates and planned tax strategies
in the various jurisdictions in which the Company operates.</FONT></P>
<P align=justify><FONT face=serif size=2>Deferred tax assets and liabilities
reflect the tax effects of temporary differences between the carrying value of
assets and liabilities for financial reporting purposes and the amounts used for
income tax purposes. SFAS No. 109 &#147;Accounting for Income Taxes&#148; requires that a
valuation allowance is recognized if, based on the weight of available evidence,
it is more likely than not that some portion or all of the deferred tax asset
will not be realized. The company maintains a valuation allowance with respect
to certain state and foreign net operating losses that may not be recovered.
Each quarter the valuation allowance is re-evaluated. During the quarter ended
December 31, 2008, no change was made to the valuation allowance.</FONT></P>
<P align=justify><FONT face=serif size=2>Upon the adoption of FIN 48, the
Company classified uncertain tax positions as non-current income taxes payable
unless expected to be paid within one year. At December 31, 2008, and September
30, 2008, the total amount of unrecognized tax benefits was $460,000 and
$440,000. If recognized, these amounts would favorably impact the effective tax
rate.</FONT></P>
<P align=justify><FONT face=serif size=2>The Company recognizes interest accrued
related to unrecognized tax benefits and penalties in the provision for income
taxes. As of December 31, 2008 and September 30, 2008, the Company accrued
$90,000 and $70,000 for potential interest and penalties.</FONT></P>
<P align=justify><FONT face=serif size=2>The Company and one or more of its
subsidiaries file income tax returns in The Netherlands, Germany, the U.S.,
France and other foreign jurisdictions, as well as various states in the U.S.
The Company and its subsidiaries have open tax years primarily from fiscal 2004
to fiscal 2008 with taxing foreign jurisdictions and the U.S. These open years
contain certain matters that could be subject to differing interpretations of
applicable tax laws and regulations as they relate to the amount, timing, or
inclusion of revenues and expenses, or the sustainability of income tax
positions of the Company and its subsidiaries.</FONT></P>
<P align=justify><B><FONT face=serif size=2>3. Earnings Per Share
</FONT></B></P>
<P align=justify><FONT face=serif size=2>Basic earnings per share (EPS) is
computed by dividing net income by the weighted average number of common shares
outstanding for the period. Diluted EPS is computed similarly to basic EPS
except that the denominator is increased to include the number of additional
common shares that would have been outstanding if potentially dilutive common
shares had been issued. </FONT></P>
<P align=justify><FONT face=serif size=2>Common shares relating to stock options
where the exercise prices exceeded the average market price of our common shares
during the period were excluded from the diluted earnings per share calculation
as the related impact was anti-dilutive. For the three months ended December 31,
2008, options for 630,000 shares and 30,500 restricted stock award shares are
excluded from the diluted EPS calculations because they are anti-dilutive. For
the three months ended December 31, 2007, options for 85,000 shares and 31,500
restricted stock award shares are excluded from the diluted EPS calculations
because they are anti-dilutive.</FONT></P>
<P align=center><FONT face=serif size=2>12</FONT><FONT face=serif> </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="75%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="89%">&nbsp; </TD>
    <TD noWrap align=center width="10%" colSpan=5><B><FONT face=serif size=2>Three Months Ended</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="10%" colSpan=5><B><FONT face=serif size=2>December 31,</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>2008</FONT></B> </TD>
    <TD noWrap align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%">&nbsp; </TD>
    <TD noWrap align=center width="10%" colSpan=5><B><FONT face=serif size=1>(in thousands, except per share amounts)</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#cceeff><B><U><FONT face=serif size=2>Basic Earnings Per Share Computation</FONT></U></B>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%"><FONT face=serif size=2>Net
      income</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT face=serif size=2>860</FONT> </TD>
    <TD noWrap align=left width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face=serif size=2>$<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT face=serif size=2>108</FONT> </TD></TR>
  <TR>
    <TD width="99%" colSpan=6>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#cceeff><FONT face=serif size=2>Weighted Average Shares Outstanding:</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Common stock</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>9,098</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>7,636</FONT> </TD></TR>
  <TR>
    <TD width="99%" colSpan=6>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#cceeff><FONT face=serif size=2>Basic earnings per share</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>0.09</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>0.01</FONT> </TD></TR>
  <TR>
    <TD width="99%" colSpan=6>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#cceeff><B><U><FONT face=serif size=2>Diluted Earnings Per Share Computation</FONT></U></B>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%"><FONT face=serif size=2>Net
      income</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face=serif size=2>$<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT face=serif size=2>860</FONT> </TD>
    <TD noWrap align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face=serif size=2>$<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT face=serif size=2>108</FONT> </TD></TR>
  <TR>
    <TD width="99%" colSpan=6>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#cceeff><FONT face=serif size=2>Weighted Average Shares Outstanding:</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Common stock</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>9,098</FONT> </TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>7,636</FONT>
  </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Common stock equivalents (1)</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>11</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>182</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Diluted shares</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT face=serif size=2>9,109</FONT> </TD>
    <TD noWrap align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT face=serif size=2>7,818</FONT> </TD></TR>
  <TR>
    <TD width="99%" colSpan=6>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#cceeff><FONT face=serif size=2>Diluted earnings per share</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>0.09</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>0.01</FONT>
</TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(1)</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>The number of common stock
      equivalents is calculated using the treasury stock method and the average
      market price during the period.</FONT></P></TD></TR></TABLE>
<P align=justify><B><FONT face=serif size=2>4. Comprehensive Income
</FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 width="70%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="88%">&nbsp; </TD>
    <TD noWrap align=center width="11%" colSpan=6><B><FONT face=serif size=2>Three Months Ended</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="11%" colSpan=6><B><FONT face=serif size=2>December 31,</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>2008</FONT></B> </TD>
    <TD noWrap align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%">&nbsp; </TD>
    <TD noWrap align=center width="11%" colSpan=6><B><FONT face=serif size=1>(dollars in thousands)</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#cceeff><FONT face=serif size=2>Net income, as reported</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>860</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>108</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%"><FONT face=serif size=2>Foreign currency
      translation adjustment</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>(459</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>146</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#cceeff><FONT face=serif size=2>Comprehensive income</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>401</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>254</FONT>
</TD></TR></TABLE><BR>
<P align=justify><B><FONT face=serif size=2>5. Business Segment Information
</FONT></B></P>
<P align=justify><FONT face=serif size=2>The Company&#146;s products are classified
into two core business segments; the solar and semiconductor equipment segment
and the polishing supplies segment. The solar and semiconductor equipment
segment designs, manufactures and markets semiconductor wafer processing and
handling equipment used in the fabrication of solar cells, integrated circuits
and MEMS. Also included in the solar and semiconductor equipment segment are the
manufacturing support service operations and corporate expenses, except for a
portion of corporate expenses that is allocated to the polishing supplies
segment. The polishing supplies segment designs, manufactures and markets
carriers, templates and equipment used in the lapping and polishing of
wafer-thin materials, including silicon wafers used in the production of
semiconductors. </FONT></P>
<P align=justify><FONT face=serif size=2></FONT>&nbsp;</P>
<P align=center><FONT face=serif size=2>13</FONT><FONT face=serif>&nbsp;</FONT><FONT face=serif> </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="75%" border=0>

  <TR>
    <TD noWrap align=left width="100%" colSpan=8><FONT size=2>Information
      concerning our business segments is as follows:</FONT><FONT size=3>&nbsp;</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="88%">&nbsp; </TD>
    <TD noWrap align=center width="12%" colSpan=7></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%">&nbsp; </TD>
    <TD noWrap align=center width="12%" colSpan=7><B><FONT face=serif size=2>Three Months Ended</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="12%" colSpan=7><B><FONT face=serif size=2>December 31,</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>2008</FONT></B> </TD>
    <TD noWrap align=center width="2%"><FONT size=3>&nbsp; &nbsp;
      &nbsp;&nbsp;&nbsp;</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>2007</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%"><FONT face=serif size=2>Net
      Revenues:</FONT>&nbsp; </TD>
    <TD noWrap align=center width="12%" colSpan=7><B><FONT face=serif size=1>(dollars in thousands)</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Solar and semiconductor equipment</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>16,132</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>9,997</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Polishing supplies</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>1,740</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>1,744</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#cceeff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>17,872</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>11,741</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD></TR>
  <TR>
    <TD width="100%" colSpan=8>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#cceeff><FONT face=serif size=2>Operating Income:</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Solar and semiconductor equipment</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT>&nbsp;
</TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>1,407</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT>&nbsp;
</TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(118</FONT> </TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp;
  </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Polishing supplies</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(28</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>143</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>1,379</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>25</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR>
    <TD width="100%" colSpan=8>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#cceeff><FONT face=serif size=2>Interest and other income (expense), net</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>61</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>153</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD></TR>
  <TR>
    <TD width="100%" colSpan=8>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Income before income taxes</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>1,440</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>178</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD></TR>
  <TR>
    <TD width="100%" colSpan=8>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%">&nbsp; </TD>
    <TD noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>December 31,</FONT></B> </TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>September 30,</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>2008</FONT></B> </TD>
    <TD noWrap align=center width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>2008</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%"><FONT face=serif size=2>Identifiable
      Assets:</FONT>&nbsp; </TD>
    <TD noWrap align=center width="12%" colSpan=7><B><FONT face=serif size=1>(dollars in thousands)</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Solar and semiconductor equipment</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>97,615</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>97,545</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Polishing supplies</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>4,569</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>4,810</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#cceeff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>102,184</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>102,355</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD></TR></TABLE><BR>
<P align=justify><B><FONT face=serif size=2>6. Major Customers and Foreign Sales
</FONT></B></P>
<P align=justify><FONT face=serif size=2>During the three month period ended
December 31, 2008, two customers individually represented 33% and 12% of net
revenues. During the three months ended December 31, 2007, one customer
represented 15% of net revenues.</FONT></P>
<P align=justify><FONT face=serif size=2>Our net revenues were to customers in
the following geographic regions: </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="81%">&nbsp; </TD>
    <TD noWrap align=center width="18%" colSpan=3><B><FONT face=serif size=2>Three Months Ended</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="18%" colSpan=3><B><FONT face=serif size=2>December 31,</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="8%"><B><FONT face=serif size=2>2008</FONT></B> </TD>
    <TD noWrap align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="8%"><STRONG><FONT size=2>2007</FONT></STRONG> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#cceeff><FONT face=serif size=2>North America </FONT><FONT face=serif size=1>(1)</FONT>&nbsp; </TD>
    <TD noWrap align=right width="8%" bgColor=#cceeff><FONT face=serif size=2>18%</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=right width="8%" bgColor=#cceeff><FONT face=serif size=2>21%</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"><FONT face=serif size=2>Asia
      </FONT><FONT face=serif size=1>(2) (3)</FONT>&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=serif size=2>69%</FONT> </TD>
    <TD noWrap align=left width="2%">&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=serif size=2>44%</FONT>
</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#cceeff><FONT face=serif size=2>Europe</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="8%" bgColor=#cceeff><FONT face=serif size=2>13%</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="8%" bgColor=#cceeff><FONT face=serif size=2>35%</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="8%"><FONT face=serif size=2>100%</FONT> </TD>
    <TD noWrap align=left width="2%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="8%"><FONT face=serif size=2>100%</FONT> </TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD vAlign=top noWrap><FONT face=serif size=1>(1)</FONT></TD>
    <TD vAlign=top noWrap><FONT size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD width="100%"><FONT face=serif size=1>Includes 18% and 21% to the
      United States in fiscal 2009 and 2008, respectively</FONT></TD></TR>
  <TR>
    <TD noWrap></TD>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD vAlign=top noWrap><FONT face=serif size=1>(2)</FONT></TD>
    <TD vAlign=top noWrap><FONT size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD width="100%"><FONT face=serif size=1>Includes 17% and 25% to China in
      fiscal 2009 and 2008, respectively.</FONT></TD></TR>
  <TR>
    <TD noWrap></TD>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD vAlign=top noWrap><FONT face=serif size=1>(3)</FONT></TD>
    <TD vAlign=top noWrap><FONT size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD width="100%"><FONT face=serif size=1>Includes 48% and 6% to Taiwan in
      fiscal 2009 and 2008, respectively.</FONT></TD></TR></TABLE>
<P align=justify><B><FONT face=serif size=2>7. Commitments and Contingencies
</FONT></B></P>
<P align=justify><B><FONT face=serif size=2>Purchase Obligations</FONT></B><FONT face=serif size=2> &#150; As of December 31, 2008, we had purchase obligations in the
amount of $6.1 million. These purchase obligations consist of outstanding
purchase orders for goods and services. While the amount represents purchase
agreements, the actual amounts to be paid may be less in the event that any
agreements are renegotiated, cancelled or terminated. </FONT></P>
<P align=center><FONT face=serif size=2>14&nbsp;</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><B><FONT face=serif size=2>8. Stockholders Equity
</FONT></B></P>
<P align=justify><B><FONT face=serif size=2>Shareholder Rights
Plan</FONT></B><FONT face=serif> &#150; </FONT><FONT face=serif size=2>On December
15, 2008, the Company and Computershare Trust Company, N.A., as Rights Agent
(the &#147;Rights Agent&#148;), entered into an Amended and Restated Rights Agreement (the
&#147;Restated Rights Agreement&#148;) which amends and restates the terms governing the
previously authorized shareholder rights (each a &#147;Right&#148;) to purchase fractional
shares of the Company&#146;s Series A Participating Preferred Stock (&#147;Series A
Preferred&#148;) currently attached to each of the Company&#146;s outstanding Common
Shares, par value $0.01 per share (&#147;Common Shares&#148;). As amended, each Right
entitles the registered holder to purchase from the Company one one-thousandth
of a share of Series A Preferred at an exercise price of $51.60 (the &#147;Exercise
Price&#148;), subject to adjustment. The Final Expiration Date (as defined in the
Restated Rights Agreement) is now December 14, 2018.</FONT></P>
<P align=justify><FONT face=serif size=2>Other than extending the Final
Expiration Date (as defined in the Restated Rights Agreement) of the Rights to
December 14, 2018 and adjusting the Exercise Price, there were no material
changes to the principal terms of the Rights. The Restated Rights Agreement also
contains certain other changes in order to address current law and practice with
respect to shareholder rights plans. </FONT></P>
<P align=justify><B><FONT face=serif size=2>Stock Repurchase
Program</FONT></B><FONT face=serif> &#150; </FONT><FONT face=serif size=2>In December
the Board of Directors approved a stock repurchase program authorizing the
repurchase of up to $4 million of its common stock. Under the program, shares
may be repurchased from time to time in open market transactions at prevailing
market prices or in privately negotiated purchases. The timing and actual number
of shares purchased will depend on a variety of factors, such as price,
corporate and regulatory requirements, alternative investment opportunities, and
other market and economic conditions. The program may be commenced, suspended or
terminated at any time, or from time-to-time at management&#146;s discretion without
prior notice.</FONT></P>
<P align=center><FONT face=serif size=2>15</FONT><FONT face=serif> </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><B><FONT face=serif size=2>ITEM 2. MANAGEMENT&#146;S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</FONT></B></P>
<P align=justify><FONT face=serif size=2>The following discussion and analysis
of our financial condition and results of operations should be read in
conjunction with our condensed consolidated financial statements and the related
notes included in Item 1, &#147;Condensed Financial Statement&#148; in this quarterly
report on Form 10-Q and our consolidated financial statements and related notes
included in Item 8, &#147;Financial Statements and Supplementary Data&#148; in our Annual
Report on Form 10-K for the fiscal year ended September 30, 2008, as
amended.</FONT></P>
<P align=justify><B><FONT face=serif size=2>Cautionary Statement Regarding
Forward-Looking Statements</FONT></B></P>
<P align=justify><I><FONT face=serif size=2>The statements in this report
include forward-looking statements. These forward-looking statements are based
on our management&#146;s current expectations and beliefs and involve numerous risks
and uncertainties that could cause actual results to differ materially from
expectations. You should not rely upon these forward-looking statements as
predictions of future events because we cannot assure you that the events or
circumstances reflected in these statements will be achieved or will occur. You
can identify forward-looking statements by the use of forward-looking
terminology, including the words &#147;believes,&#148; &#147;expects,&#148; &#147;may,&#148; &#147;will,&#148; &#147;should,&#148;
&#147;seeks,&#148; &#147;intends,&#148; &#147;plans,&#148; &#147;estimates&#148; or &#147;anticipates&#148; or the negative of
these words and phrases or other variations of these words and phrases or
comparable terminology. These forward-looking statements relate to, among other
things: our sales, results of operations and anticipated cash flows; capital
expenditures; depreciation and amortization expenses; research and development
expenses; selling, general and administrative expenses; the development and
timing of the introduction of new products and technologies; our ability to
maintain and develop relationships with our existing and potential future
customers and our ability to maintain the level of investment in research and
development and capacity that is required to remain competitive. Many factors
could cause our actual results to differ materially from those projected in
these forward-looking statements, including, but not limited to: whether we will
be able to complete acquisitions and integrate such businesses successfully and
achieve anticipated synergies; variability of our revenues and financial
performance; risks associated with product development and technological
changes; the acceptance of our products in the marketplace by existing and
potential future customers; disruption of operations or increases in expenses
caused by civil or political unrest or other catastrophic events; general
economic conditions and conditions in the semiconductor and solar industries in
particular; the continued employment of our key personnel and risks associated
with competition.</FONT></I><FONT face=serif size=2></FONT></P>
<P align=justify><I><FONT face=serif size=2>For a discussion of the factors that
could cause actual results to differ materially from the forward-looking
statements, see the &#147;Risk Factors&#148; set forth in Item 1A of Part I of Amtech
Systems, Inc.&#146;s Annual Report on Form 10-K for the fiscal year ended September
30, 2008, the &#147;Liquidity and Capital Resources&#148; section under &#147;Management&#146;s
Discussion and Analysis of Financial Condition and Results of Operations&#148; in
this item of this report and the other risks and uncertainties that are set
forth elsewhere in this report or detailed in our other Securities and Exchange
Commission reports and filings. We assume no obligation to update these
forward-looking statements.</FONT></I></P>
<P align=justify><B><FONT face=serif size=2>Introduction</FONT></B><B><FONT face=serif></FONT></B></P>
<P align=justify><FONT face=serif size=2>Management&#146;s Discussion and Analysis
(&#147;MD&amp;A&#148;) is intended to facilitate an understanding of our business and
results of operations. MD&amp;A consists of the following sections:</FONT> <FONT face=serif></FONT></P>
<UL>
  <LI><FONT face=serif size=2>Overview<BR>&nbsp;</FONT>
  <LI><FONT face=serif size=2>Results of Operations<BR>&nbsp;</FONT>
  <LI><FONT face=serif size=2>Liquidity and Capital Resources<BR>&nbsp;</FONT>
  <LI><FONT face=serif size=2>Off &#150; Balance Sheet Arrangements<BR>&nbsp;</FONT>
  <LI><FONT face=serif size=2>Contractual Obligations<BR>&nbsp;</FONT>
  <LI><FONT face=serif size=2>Critical Accounting Policies<BR>&nbsp;</FONT>
  <LI><FONT face=serif size=2>Impact of Recently Issued Accounting
  Pronouncements</FONT></LI></UL>
<P align=center><FONT face=serif><FONT face=serif size=2>16</FONT></FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><B><FONT face=serif size=2>Overview</FONT></B><FONT face=serif>
</FONT></P>
<P align=justify><FONT face=serif size=2>We operate in two segments: the solar
and semiconductor equipment segment and the polishing supplies segment. Our
solar and semiconductor equipment segment is a leading supplier of thermal
processing systems, including related automation, parts and services, to the
solar/photovoltaic, semiconductor, silicon wafer and MEMS
industries.</FONT><FONT face=serif> </FONT></P>
<P align=justify><FONT face=serif size=2>Our polishing supplies and equipment
segment is a leading supplier of wafer carriers to manufacturers of silicon
wafers. The polishing segment also manufacturers polishing templates, steel
carriers and double-sided polishing and lapping machines to fabricators of
optics, quartz, ceramics and metal parts, and to manufacturers of medical
equipment components.</FONT></P>
<P align=justify><FONT face=serif size=2>Our customers are primarily
manufacturers of solar cells and integrated circuits. The solar cell and
semiconductor industries are cyclical and historically have experienced
significant fluctuations. Our revenue is impacted by these broad industry
trends. </FONT></P>
<P align=justify><FONT face=serif size=2>Due to the nature of the capital
equipment markets that we serve, revenues, gross margins, and operating results
have historically fluctuated on a quarterly basis. Our contracts include
holdbacks of 10-20% of revenue, which are recognized at the time of customer
acceptance. </FONT><FONT face=serif></FONT></P>
<P align=justify><B><FONT face=serif size=2>Results of Operations
</FONT></B></P>
<P align=justify><FONT face=serif size=2>The following table sets forth certain
operational data as a percentage of net revenue for the periods indicated:
</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="70%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="74%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="25%" colSpan=3><B><FONT face=serif size=1>Three Months Ended</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%">&nbsp; </TD>
    <TD noWrap align=center width="10%"><B><FONT face=serif size=1>December
      31,</FONT></B> </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="10%"><B><FONT face=serif size=1>December
      31,</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="10%"><B><FONT face=serif size=1>2008</FONT></B> </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="10%"><B><FONT face=serif size=1>2007</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%" bgColor=#cceeff><FONT face=serif size=2>Net revenue</FONT>&nbsp; </TD>
    <TD noWrap align=right width="10%" bgColor=#cceeff><FONT face=serif size=2>100%</FONT> </TD>
    <TD noWrap align=right width="5%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="10%" bgColor=#cceeff><FONT face=serif size=2>100%</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%"><FONT face=serif size=2>Cost of goods
      sold</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="10%"><FONT face=serif size=2>66%</FONT> </TD>
    <TD noWrap align=right width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="10%"><FONT face=serif size=2>70%</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%" bgColor=#cceeff><FONT face=serif size=2>Gross margin</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="10%" bgColor=#cceeff><FONT face=serif size=2>34%</FONT> </TD>
    <TD noWrap align=right width="5%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="10%" bgColor=#cceeff><FONT face=serif size=2>30%</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%"><FONT face=serif size=2>Operating
      expenses:</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="10%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Selling, general and administrative</FONT>&nbsp; </TD>
    <TD noWrap align=right width="10%" bgColor=#cceeff><FONT face=serif size=2>25%</FONT> </TD>
    <TD noWrap align=right width="5%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="10%" bgColor=#cceeff><FONT face=serif size=2>28%</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Research and Development</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="10%"><FONT face=serif size=2>1%</FONT> </TD>
    <TD noWrap align=right width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="10%"><FONT face=serif size=2>2%</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%" bgColor=#cceeff><FONT face=serif size=2>Total operating expenses</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="10%" bgColor=#cceeff><FONT face=serif size=2>26%</FONT> </TD>
    <TD noWrap align=right width="5%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="10%" bgColor=#cceeff><FONT face=serif size=2>30%</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%"><FONT face=serif size=2>Income from
      operations</FONT>&nbsp; </TD>
    <TD noWrap align=right width="10%"><FONT face=serif size=2>8%</FONT> </TD>
    <TD noWrap align=right width="5%"></TD>
    <TD noWrap align=right width="10%"><FONT face=serif size=2>0%</FONT>
</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%" bgColor=#cceeff><FONT face=serif size=2>Interest income (expense), net</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="10%" bgColor=#cceeff><FONT face=serif size=2>0%</FONT> </TD>
    <TD noWrap align=right width="5%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="10%" bgColor=#cceeff><FONT face=serif size=2>2%</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%"><FONT face=serif size=2>Income before
      income taxes</FONT>&nbsp; </TD>
    <TD noWrap align=right width="10%"><FONT face=serif size=2>8%</FONT> </TD>
    <TD noWrap align=right width="5%"></TD>
    <TD noWrap align=right width="10%"><FONT face=serif size=2>2%</FONT>
</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%" bgColor=#cceeff><FONT face=serif size=2>Income taxes</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="10%" bgColor=#cceeff><FONT face=serif size=2>3%</FONT> </TD>
    <TD noWrap align=right width="5%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="10%" bgColor=#cceeff><FONT face=serif size=2>1%</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%"><FONT face=serif size=2>Net
      Income</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="10%"><FONT face=serif size=2>5%</FONT> </TD>
    <TD noWrap align=right width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="10%"><FONT face=serif size=2>1%</FONT> </TD></TR></TABLE><BR>
<P align=justify><B><I><FONT face=serif size=2>Net Revenue</FONT></I></B><FONT face=serif size=2> </FONT></P>
<P align=justify><FONT face=serif size=2>Net revenue consists of revenue
recognized upon shipment or installation of products using proven technology and
upon acceptance of products using new technology. In addition, spare parts sales
are recognized upon shipment. Service revenue is recognized upon completion of
the service activity or ratably over the term of the service contract. The
majority of our revenue is generated from large furnace systems sales which,
depending on the timing of shipment and installation, can have a significant
impact on our revenue and earnings in any given period. </FONT><I><FONT face=serif size=2>See</FONT></I><FONT face=serif size=2> Critical Accounting
Policies &#150; Revenue Recognition.</FONT></P>
<P align=center><FONT face=serif size=2>17</FONT><FONT face=serif> </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="62%">&nbsp; </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="13%" colSpan=5><B><FONT face=serif size=1>Three Months Ended</FONT></B> </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="15%" colSpan=6>&nbsp; &nbsp; &nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="62%">&nbsp; </TD>
    <TD align=center width="5%">&nbsp;</TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=1>December 31,</FONT></B> </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=1>December 31,</FONT></B> </TD>
    <TD align=center width="5%"></TD>
    <TD noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=1>Increase</FONT></B> </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="5%" colSpan=2>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="62%">&nbsp; </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=1>2008</FONT></B> </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=1>2007</FONT></B> </TD>
    <TD align=center width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=1>(Decrease)</FONT></B> </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><FONT face=serif size=1>%</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="62%"><FONT face=serif size=2>Segment</FONT>&nbsp; </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="13%" colSpan=5><B><FONT face=serif size=1>(dollars in thousands)</FONT></B> </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="15%" colSpan=6>&nbsp; &nbsp; &nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="62%" bgColor=#cceeff><FONT face=serif size=2>Solar and Semiconductor Equipment Segment</FONT>&nbsp; </TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>16,132</FONT> </TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>9,997</FONT> </TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>6,135</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>61</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff><FONT face=serif size=2>%</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="62%"><FONT face=serif size=2>Polishing
      Supplies Segment</FONT>&nbsp; </TD>
    <TD noWrap align=left width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>1,740</FONT> </TD>
    <TD noWrap align=left width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>1,744</FONT> </TD>
    <TD noWrap align=left width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>(4</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp; </TD>
    <TD noWrap align=right width="5%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(0</FONT> </TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>%)</FONT>&nbsp;
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="62%" bgColor=#cceeff><B><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Total Net Revenue</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>17,872</FONT> </TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>11,741</FONT> </TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>6,131</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>52</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff><FONT face=serif size=2>%</FONT>&nbsp; </TD></TR></TABLE><BR>
<P align=justify><FONT face=serif size=2>Net revenue for the quarter ended
December 31, 2008 increased by $6.1 million, or 52%, from the quarter ended
December 31, 2007. Revenue increases in the solar and semiconductor equipment
segment resulted from higher shipment volumes to the solar industry, partially
offset by an increase in deferred revenue. Net revenue from the solar market was
$11.1 million for the three months ended December 31, 2008, a $5.9 million or
113% increase from the three months ended December 31, 2007. Net revenue of the
polishing supplies segment for the three months ended December 31, 2008 remained
at the same level as net revenue for the three months ended December 31, 2007.
The recent global credit crisis and related downturn in the global economy has
caused many of our customers to delay or suspend their capacity expansion plans,
which has resulted in lower orders. In addition, some of our customers have and
others may request delays in the shipment of their orders. As a result, future
revenues from both the solar and semiconductor markets are likely to be
negatively impacted.</FONT></P>
<P align=justify><B><I><FONT face=serif size=2>Backlog and
Orders&nbsp;</FONT></I></B></P>
<P align=justify><FONT face=serif size=2>Our order backlog as of December 31,
2008 and 2007 was $42.4 million and $49.9 million, respectively. Our backlog as
of December 31, 2008 includes approximately $35.8 million of orders from our
solar industry customers compared to $42.2 million at December 31, 2007. New
orders booked in our most recent quarter ended December 31, 2008 were $9.3
million compared to $37.0 million in the first quarter of fiscal 2008 and $17.6
million in the fourth quarter of fiscal 2008. The decrease in new orders and
backlog is due primarily to the recent global credit crisis and related economic
downturn. This has caused many of our customers to delay or suspend their
capacity expansion plans. Total bookings for the next several quarters are
expected to remain noticeably lower than prior year quarters as a result of the
lingering global economic downturn.</FONT></P>
<P align=justify><FONT face=serif size=2>The orders included in our backlog are
generally credit approved customer purchase orders expected to ship within the
next twelve months. Because our orders are typically subject to cancellation or
delay by the customer, our backlog at any particular point in time is not
necessarily representative of actual sales for succeeding periods, nor is
backlog any assurance that we will realize profit from completing these orders.
Our backlog also includes revenue deferred pursuant to our revenue recognition
policy, derived from orders that have already been shipped, but which have not
met the criteria for revenue recognition. Our backlog as of December 31, 2008
and 2007, respectively, include $1.1 million and $0.9 million of deferred
revenue for which there is an equal amount of deferred costs, i.e. with no gross
profit to be realized. </FONT></P>
<P align=justify><B><I><FONT face=serif size=2>Gross Profit and Gross
Margin</FONT></I></B><FONT face=serif size=2> </FONT></P>
<P align=justify><FONT face=serif size=2>Gross profit is the difference between
net revenue and cost of goods sold. Cost of goods sold consists of purchased
material, labor and overhead to manufacture equipment and spare parts and the
cost of service and support to customers for warranty, installation and paid
service calls. Gross margin is gross profit as a percent of net revenue.
</FONT></P>
<P align=justify>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="62%">&nbsp; </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="13%" colSpan=5><B><FONT face=serif size=1>Three Months Ended</FONT></B> </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="15%" colSpan=6>&nbsp; &nbsp; &nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="62%">&nbsp; </TD>
    <TD align=center width="5%">&nbsp;</TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=1>December 31,</FONT></B> </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=1>December 31,</FONT></B> </TD>
    <TD align=center width="5%"></TD>
    <TD noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=1>Increase</FONT></B> </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="5%" colSpan=2>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="62%">&nbsp; </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=1>2008</FONT></B> </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=1>2007</FONT></B> </TD>
    <TD align=center width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=1>(Decrease)</FONT></B> </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><FONT face=serif size=1>%</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="62%"><FONT face=serif size=2>Segment</FONT>&nbsp; </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="13%" colSpan=5><B><FONT face=serif size=1>(dollars in thousands)</FONT></B> </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="15%" colSpan=6>&nbsp; &nbsp; &nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="62%" bgColor=#cceeff><FONT face=serif size=2>Solar and Semiconductor Equipment Segment<FONT size=3>&nbsp;
      </FONT></FONT></TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>5,778<FONT size=3> </FONT></FONT></TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>3,059<FONT size=3> </FONT></FONT></TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>2,719<FONT size=3> </FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>89</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff><FONT face=serif size=2>%</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="62%"><FONT face=serif size=2>Polishing
      Supplies Segment<FONT size=3>&nbsp; </FONT></FONT></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>308<FONT size=3> </FONT></FONT></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>501<FONT size=3> </FONT></FONT></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>(193<FONT size=3> </FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp; </TD>
    <TD noWrap align=right width="5%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(39</FONT> </TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>%)</FONT>&nbsp;
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="62%" bgColor=#cceeff><FONT face=serif size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp; Total Gross Profit</STRONG><FONT size=3>&nbsp; </FONT></FONT></TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>6,086<FONT size=3>
    </FONT></FONT></TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>3,560<FONT size=3>
    </FONT></FONT></TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>2,526<FONT size=3>
    </FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>71</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff><FONT face=serif size=2>%</FONT>&nbsp; </TD></TR>
  <TR>
    <TD noWrap align=left width="62%" bgColor=#ffffff><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross
      Margin</FONT>&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="5%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=2>34%</FONT></TD>
    <TD noWrap align=left width="5%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=2>30%</FONT></TD>
    <TD noWrap align=left width="5%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=right width="5%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=left width="2%" bgColor=#ffffff>&nbsp;</TD></TR></TABLE>
<P align=justify><FONT face=serif size=2>For the three months ended December 31,
2008, gross profit in the solar and semiconductor equipment segment increased
89% versus the three months ended December 31, 2007. The increase was driven
primarily by higher volumes and improved capacity utilization, including
improvements at R2D, the company acquired in the first quarter of fiscal 2008.
Improvements in gross profit were partially offset by a $0.8 million increase in
deferred profit during the three months ended December 31, 2008. In the
comparable period ended December 31, 2007, deferred profit decreased $0.8
million. Gross margins in the polishing supplies segment were negatively
impacted by product mix as volumes of higher-margin insert carriers decreased
while sales of polishing machines, which generally carry a lower gross margin,
increased. </FONT></P>
<P align=justify><B><I><FONT face=serif size=2>Selling, General and
Administrative</FONT></I></B><FONT face=serif size=2> </FONT></P>
<P align=justify><FONT face=serif size=2>Selling, general and administrative
expenses consist of the cost of employees, consultants and contractors, facility
costs, sales commissions, promotional marketing expenses, legal and accounting
expenses. </FONT></P>
<P align=center><FONT face=serif size=2>18</FONT><FONT face=serif> </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="62%">&nbsp; </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="13%" colSpan=5><B><FONT face=serif size=1>Three Months Ended</FONT></B> </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="15%" colSpan=6>&nbsp; &nbsp; &nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="62%">&nbsp; </TD>
    <TD align=center width="5%">&nbsp;</TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=1>December 31,</FONT></B> </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=1>December 31,</FONT></B> </TD>
    <TD align=center width="5%"></TD>
    <TD noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=1>Increase</FONT></B> </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="5%" colSpan=2>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="62%">&nbsp; </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=1>2008</FONT></B> </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=1>2007</FONT></B> </TD>
    <TD align=center width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=1>(Decrease)</FONT></B> </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><FONT face=serif size=1>%</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="62%"><FONT face=serif size=2>Segment</FONT>&nbsp; </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="13%" colSpan=5><B><FONT face=serif size=1>(dollars in thousands)</FONT></B> </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="15%" colSpan=6>&nbsp; &nbsp; &nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="62%" bgColor=#cceeff><FONT face=serif size=2>Solar and Semiconductor Equipment Segment<FONT size=3>&nbsp;
      </FONT></FONT></TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>4,147<FONT size=3> </FONT></FONT></TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>2,944<FONT size=3> </FONT></FONT></TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>1,203<FONT size=3> </FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>41</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff><FONT face=serif size=2>%</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="62%"><FONT face=serif size=2>Polishing
      Supplies Segment<FONT size=3>&nbsp; </FONT></FONT></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>336<FONT size=3> </FONT></FONT></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>358<FONT size=3> </FONT></FONT></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>(22<FONT size=3> </FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp; </TD>
    <TD noWrap align=right width="5%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(6</FONT> </TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>%)</FONT>&nbsp;
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="62%" bgColor=#cceeff><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face=serif size=2><STRONG>Total SG&amp;A</STRONG></FONT><FONT size=3>&nbsp;
      </FONT></FONT></TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>4,483<FONT size=3>
    </FONT></FONT></TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>3,302<FONT size=3>
    </FONT></FONT></TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>1,181<FONT size=3>
    </FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>36</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff><FONT face=serif size=2>%</FONT>&nbsp; </TD></TR>
  <TR>
    <TD noWrap align=left width="62%" bgColor=#ffffff><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face=serif size=2>Percent of net revenue</FONT></FONT><FONT size=3>&nbsp;
      </FONT></TD>
    <TD noWrap align=left width="5%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=2>25%</FONT></TD>
    <TD noWrap align=left width="5%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=2>28%</FONT></TD>
    <TD noWrap align=left width="5%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=right width="5%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=left width="2%" bgColor=#ffffff>&nbsp;</TD></TR></TABLE><BR>
<P align=justify><FONT face=serif size=2>Total selling, general and
administrative (SG&amp;A) expense for the three months ended December 31, 2008
increased $1.2 million, or 36%, over the three months ended December 31, 2007.
Commission expense increased $0.8 million for the three months ended December
31, 2008 versus the three months ended December 31, 2007 due to increased
commissionable sales, primarily in the solar market. The remainder of the
increase results from increases in stock-based and incentive compensation
expense and professional fees, including costs related to compliance with the
provisions of the Sarbanes-Oxley Act.</FONT><B><FONT face=serif size=2>
</FONT></B></P>
<P align=justify><B><I><FONT face=serif size=2>Research and
Development</FONT></I></B></P>
<P align=justify><FONT face=serif size=2>Research and development expenses
consist of the cost of employees, consultants and contractors who design,
engineer and develop new products; materials and supplies used in product
prototyping.</FONT></P>
<P align=justify>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="62%">&nbsp; </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="13%" colSpan=5><B><FONT face=serif size=1>Three Months Ended</FONT></B> </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="15%" colSpan=6>&nbsp; &nbsp; &nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="62%">&nbsp; </TD>
    <TD align=center width="5%">&nbsp;</TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=1>December 31,</FONT></B> </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=1>December 31,</FONT></B> </TD>
    <TD align=center width="5%"></TD>
    <TD noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=1>Increase</FONT></B> </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="5%" colSpan=2>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="62%">&nbsp; </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=1>2008</FONT></B> </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=1>2007</FONT></B> </TD>
    <TD align=center width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=1>(Decrease)</FONT></B> </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><FONT face=serif size=1>%</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="62%"><FONT face=serif size=2>Segment</FONT>&nbsp; </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="13%" colSpan=5><B><FONT face=serif size=1>(dollars in thousands)</FONT></B> </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="15%" colSpan=6>&nbsp; &nbsp; &nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="62%" bgColor=#cceeff><FONT face=serif size=2>Semiconductor and Solar Equipment Segment<FONT size=3>&nbsp;
      </FONT></FONT></TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>224<FONT size=3> </FONT></FONT></TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>233<FONT size=3> </FONT></FONT></TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(9<FONT size=3> </FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT size=2>)</FONT>&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(4</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff><FONT face=serif size=2>%)<FONT size=3>&nbsp; </FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="62%"><FONT face=serif size=2>Polishing
      Supplies Segment<FONT size=3>&nbsp; </FONT></FONT></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>-<FONT size=3> </FONT></FONT></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>-<FONT size=3> </FONT></FONT></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>-<FONT size=3> </FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="5%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>0</FONT> </TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>%</FONT>&nbsp;
  </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="62%" bgColor=#cceeff><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face=serif size=2><STRONG>Total Research and Development</STRONG></FONT><FONT size=3>&nbsp; </FONT></FONT></TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>224<FONT size=3> </FONT></FONT></TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>233<FONT size=3> </FONT></FONT></TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(9<FONT size=3> </FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT size=2>)</FONT>&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(4<FONT style="BACKGROUND-COLOR: #cceeff" size=3> </FONT></FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff><FONT face=serif size=2>%)<FONT size=3>&nbsp; </FONT></FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="62%" bgColor=#ffffff><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face=serif size=2>Percent of net revenue</FONT></FONT><FONT size=3>&nbsp;
      </FONT></TD>
    <TD noWrap align=left width="5%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=2>1%</FONT></TD>
    <TD noWrap align=left width="5%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=2>2%</FONT></TD>
    <TD noWrap align=left width="5%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=right width="5%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=left width="2%" bgColor=#ffffff>&nbsp;</TD></TR></TABLE>
<P align=justify><FONT face=serif size=2>Research and development costs for the
three months ended December 31, 2008 remained consistent with the levels for the
three months ended December 31, 2007.</FONT></P>
<P align=justify><B><I><FONT face=serif size=2>Interest and other income
(expense), net </FONT></I></B></P>
<P align=justify><FONT face=serif size=2>Interest and other income (expense),
net includes mainly interest income, interest expense and gains and losses on
foreign currency transactions. </FONT></P>
<P align=justify>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="61%">&nbsp; </TD>
    <TD noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="14%" colSpan=6><B><FONT face=serif size=1>Three Months Ended</FONT></B> </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="15%" colSpan=6>&nbsp; &nbsp; &nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%">&nbsp; </TD>
    <TD align=center width="4%">&nbsp;</TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=1>December 31,</FONT></B> </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD align=center width="5%" colSpan=3><B><FONT face=serif size=1>December
      31,</FONT></B> </TD>
    <TD align=center width="5%"></TD>
    <TD noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=1>Increase</FONT></B> </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="5%" colSpan=2>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%">&nbsp; </TD>
    <TD noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=1>2008</FONT></B> </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center width="5%" colSpan=3><B><FONT face=serif size=1>2007</FONT></B>&nbsp;</TD>
    <TD align=center width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=1>(Decrease)</FONT></B> </TD>
    <TD noWrap align=center width="5%" bgColor=#ffffff></TD>
    <TD noWrap align=center width="5%" bgColor=#ffffff colSpan=2></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="61%"><FONT face=serif size=2><STRONG>Interest and other income
      (expense), net</STRONG></FONT></TD>
    <TD noWrap align=center width="4%"></TD>
    <TD noWrap align=center width="14%" colSpan=6><B><FONT face=serif size=1>(dollars in thousands)</FONT></B> </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="15%" colSpan=6>&nbsp; &nbsp; &nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%" bgColor=#cceeff><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face=serif size=2>Interest and other income (expense), net</FONT><FONT size=3>&nbsp;
      </FONT></FONT></TD>
    <TD noWrap align=left width="4%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>51<FONT size=3> </FONT></FONT></TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>207<FONT size=3> </FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(156<FONT size=3> </FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT size=2>)</FONT>&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="2%" bgColor=#ffffff><FONT face=serif size=2><FONT size=3></FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face=serif size=2>Foreign currency gains (losses)</FONT><FONT size=3>&nbsp;
      </FONT></FONT></TD>
    <TD noWrap align=left width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>10<FONT size=3> </FONT></FONT></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>(54<FONT size=3> </FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2>)</FONT>&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>&nbsp;64</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="5%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="2%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%" bgColor=#cceeff><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Total</FONT>&nbsp; </FONT></FONT></TD>
    <TD noWrap align=left width="4%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>61<FONT size=3> </FONT></FONT></TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>153<FONT size=3> </FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(92<FONT size=3> </FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT size=2>)</FONT>&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2><FONT style="BACKGROUND-COLOR: #cceeff" size=3></FONT></FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#ffffff><FONT face=serif size=2><FONT size=3></FONT></FONT></TD></TR></TABLE>
<P align=justify><FONT face=serif size=2>Interest income represents earnings on
invested funds. Interest expense primarily consists of interest incurred on our
overdraft facility, capital equipment borrowings and mortgage on Amtech&#146;s land
and building in the Netherlands. Interest and other income decreased $0.2
million due to lower interest rates for the three months ended December 31,
2008. </FONT></P>
<P align=justify><B><I><FONT face=serif size=2>Income Taxes</FONT></I></B><FONT face=serif size=2> </FONT></P>
<P align=justify><FONT face=serif size=2>During the three months ended December
31, 2008, we recorded income taxes of $0.6 million. The effective tax rate used
for calculating the income tax provision for the three months ended December 31,
2008 and December 31, 2007 were approximately 40% and 39%, respectively. The
rates are estimates based upon projected annual income, estimated annual
permanent differences and statutory tax rates in the various jurisdictions in
which we operate.</FONT></P>
<P align=center><FONT face=serif size=2>19</FONT><FONT face=serif> </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><FONT face=serif size=2><STRONG>Liquidity and Capital
Resources</STRONG><FONT face=serif size=2> </FONT></FONT></P>
<P align=justify><FONT face=serif size=2>At December 31, 2008 and September 30,
2008, cash and cash equivalents and restricted cash were $38.9 million and $38.5
million, respectively. Our working capital as of December 31, 2008 and September
30, 2008 was $58.2 million and $57.2 million, respectively. The increase in cash
and cash equivalents resulted primarily from cash provided by operations,
partially offset by purchases of property, plant and equipment as well as a
payment for our licensing agreement with PST. In the first quarter of fiscal
2009 we terminated our line of credit in the amount of Euro 1.0 million
(approximately $1.4 million). We believe that our principal sources of liquidity
discussed above are sufficient to support operations.</FONT></P>
<P align=justify><FONT face=serif size=2>The success of our growth strategy is
dependent upon the availability of additional capital resources on terms
satisfactory to management. Our sources of capital in the past have included
capital leases, long-term debt and the sale of equity securities, which include
common and preferred stock sold in private transactions and public offerings.
There can be no assurance that we can raise such additional capital resources on
satisfactory terms.</FONT></P>
<P align=justify><FONT face=serif size=2>In December, the Board of Directors
approved a stock repurchase program authorizing the repurchase of up to $4
million of its common stock. Under the program, shares may be repurchased from
time to time in open market transactions at prevailing market prices or in
privately negotiated purchases. The timing and actual number of shares purchased
will depend on a variety of factors, such as price, corporate and regulatory
requirements, alternative investment opportunities, and other market and
economic conditions. Repurchases under the program will be funded from available
working capital. The program may be commenced, suspended or terminated at any
time, or from time-to-time at management&#146;s discretion without prior
notice.</FONT></P>
<P align=justify><B><I><FONT face=serif size=2>Cash Flows from Operating
Activities</FONT></I></B><FONT face=serif size=2> </FONT></P>
<P align=justify><FONT face=serif size=2>Cash provided by our operating
activities was $1.1 million for the three months ended December 31, 2008,
compared to $1.7 million used in such activities for the three months ended
December 31, 2007. In the first quarter of fiscal 2009, cash was primarily
generated by earnings from operations, partially offset by increases in
inventory and prepaid expenses and other assets as well as decreases in accrued
liabilities and customer deposits. In the first quarter of fiscal 2008, cash was
primarily used to finance increases in inventory and decreases in accounts
payable, other current liabilities and deferred profit. This was partially
offset by a decrease in accounts receivable.</FONT></P>
<P align=justify><B><I><FONT face=serif size=2>Cash Flows from Investing
Activities</FONT></I></B><FONT face=serif size=2> </FONT></P>
<P align=justify><FONT face=serif size=2>Our investing activities for the three
months ended December 31, 2008 and 2007 used $0.5 million and $9.6 million
respectively. For the three months ended December 31, 2008, we had capital
expenditures of $0.2 million primarily for machinery and equipment and we made a
payment of $0.3 million for our licensing agreement with PST. For three months
ended December 31, 2007, we used cash of $8.0 million related to the acquisition
of R2D. Capital expenditures in the same period were $1.2 million, primarily
related to the improvements of our facilities in The Netherlands.</FONT></P>
<P align=justify><B><I><FONT face=serif size=2>Cash Flows from Financing
Activities</FONT></I></B><FONT face=serif size=2> </FONT></P>
<P align=justify><FONT face=serif size=2>For the three months ended December 31,
2008, $0.1 million of cash was used in financing activities for the payment of
long-term debt. This compares to cash of $33.6 million provided by the sale of
2,500,000 shares of common stock in an underwritten public offering at a price
to the public of $14.41 per share in the first quarter of fiscal 2008. An
additional $0.2 million was provided by the exercise of stock options in the
first quarter of fiscal 2008.</FONT></P>
<P align=justify><B><FONT face=serif size=2>Off-Balance Sheet
Arrangements</FONT></B></P>
<P align=justify><FONT face=serif size=2>As of December 31, 2008, Amtech had no
off-balance sheet arrangements as defined in Item 303(a) (4) of Regulation S-K
promulgated by the Securities and Exchange Commission. </FONT></P>
<P align=justify><B><FONT face=serif size=2>Contractual
Obligations</FONT></B><FONT face=serif size=2> </FONT></P>
<P align=justify><FONT face=serif size=2>The only significant changes in
contractual obligations since the end of fiscal 2008 have been purchase
obligations (See Note 7 of the Condensed Consolidated Financial Statements).
Refer to Amtech&#146;s annual report on Form 10-K for the year ended September 30,
2008, for information on the Company&#146;s other contractual obligations.
</FONT></P>
<P align=center><FONT face=serif size=2>20</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><FONT face=serif size=2><B>Critical Accounting
Policies</B></FONT></P>
<P align=justify><FONT face=serif size=2>Management&#146;s Discussion and Analysis of
Financial Condition and Results of Operations discusses our consolidated
financial statements that have been prepared in accordance with accounting
principles generally accepted in the United States of America. The preparation
of these financial statements requires us to make estimates and assumptions that
affect the reported amount of assets and liabilities at the date of the
financial statements, the disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenue and
expenses during the reporting period.</FONT></P>
<P align=justify><FONT face=serif size=2>On an on-going basis, we evaluate our
estimates and judgments, including those related to revenue recognition,
inventory valuation, accounts receivable collectibility, warranty and impairment
of long-lived assets. We base our estimates and judgments on historical
experience and on various other factors that we believe to be reasonable under
the circumstances. The results of these estimates and judgments form the basis
for making conclusions about the carrying value of assets and liabilities that
are not readily apparent from other sources. Actual results may differ from
these estimates under different assumptions or conditions.</FONT></P>
<P align=justify><FONT face=serif size=2>A critical accounting policy is one
that is both important to the presentation of our financial position and results
of operations, and requires management&#146;s most difficult, subjective or complex
judgments, often as a result of the need to make estimates about the effect of
matters that are inherently uncertain. These uncertainties are discussed in
&#147;Item 1A. Risk Factors&#148; of this Annual Report on Form 10-K for the year ended
September 30, 2008. We believe the following critical accounting policies affect
the more significant judgments and estimates used in the preparation of our
consolidated financial statements.</FONT></P>
<P align=justify><B><I><FONT face=serif size=2>Revenue Recognition.
</FONT></I></B><FONT face=serif size=2>We review product and service sales
contracts with multiple deliverables to determine if separate units of
accounting are present in the arrangements. Where separate units of accounting
exist, revenue is allocated to delivered items equal to the total sales price
less the greater of the relative fair value of the undelivered items, and all
contingent portions of the sales arrangement.</FONT></P>
<P align=justify><FONT face=serif size=2>We recognize revenue when persuasive
evidence of an arrangement exists; the product has been delivered and title has
transferred, or services have been rendered; the seller&#146;s price to the buyer is
fixed or determinable; and collectibility is reasonably assured. For us, this
policy generally results in revenue recognition at the following
points:</FONT></P>
<UL style="TEXT-ALIGN: justify">
  <LI><FONT face=serif size=2>For the semiconductor and solar equipment segment,
  transactions where legal title passes to the customer upon shipment, we
  recognize revenue upon shipment for those products where the customer&#146;s
  defined specifications have been met with at least two similarly configured
  systems and processes for a comparably situated customer. However, a portion
  of the revenue associated with certain installation-related tasks, equal to
  the greater of the relative fair value of those tasks or the portion of the
  contract price contingent upon their completion, generally 10%-20% of the
  system&#146;s selling price (the &#147;holdback&#148;), and directly related costs, if any,
  are deferred and recognized into income when the tasks are completed. Since we
  defer only those costs directly related to installation or other unit of
  accounting not yet delivered and that portion of the contract price is often
  considerably greater than the fair market value of those items, our policy at
  times will result in deferral of profit that is disproportionately greater
  than the deferred revenue. When this is the case, the gross profit recognized
  in one period will be lower and the gross profit reported in a subsequent
  period will improve.<BR>&nbsp;</FONT>
  <LI><FONT face=serif size=2>For products where the customer&#146;s defined
  specifications have not been met with at least two similarly configured
  systems and processes, the revenue and directly related costs are deferred at
  the time of shipment and recognized into income at the time of customer
  acceptance or when this criterion has been met. We have, on occasion,
  experienced longer than expected delays in receiving cash from certain
  customers pending final installation or system acceptance. If some of our
  customers refuse to pay the final payment, or otherwise delay final acceptance
  or installation, the deferred revenue would not be recognized, adversely
  affecting our future operating results.<BR>&nbsp;</FONT>
  <LI><FONT face=serif size=2>Equipment sold by the polishing supplies segment
  does not include process guarantees, acceptance criteria or holdbacks;
  therefore, the related revenue is recorded upon transfer of title which is
  generally at time of shipment. Our shipping terms for both segments are
  customarily FOB our shipping point or equivalent terms.<BR>&nbsp;</FONT>
  <LI><FONT face=serif size=2>For all segments, sales of spare parts and
  consumables are recognized upon shipment, as there are no post shipment
  obligations other than standard warranties.</FONT></LI></UL>
<P align=center><FONT face=serif size=2>21</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<UL style="TEXT-ALIGN: justify">
  <LI><FONT face=serif size=2>Service revenue is recognized upon performance of
  the services requested by the customer. Revenue related to service contracts
  is recognized ratably over the period of the contract or in accordance with
  the terms of the contract, which generally coincides with the performance of
  the services requested by the customer.</FONT></LI></UL>
<P align=justify><B><I><FONT face=serif size=2>Deferred Tax Asset Valuation
Allowance. </FONT></I></B><FONT face=serif size=2>We currently have significant
deferred tax assets resulting from expenses not currently deductible for tax
purposes, revenue recognized for tax purposes but deferred for financial
statement purposes and net operating loss carryforwards in certain state and
foreign jurisdictions available to reduce taxable income in future
periods.</FONT></P>
<P align=justify><FONT face=serif size=2>During fiscal 2004, we recorded a
valuation allowance for the total of our deferred tax assets. SFAS No. 109
requires a valuation allowance be established when it is &#147;more likely than not&#148;
that all or a portion of deferred tax assets will not be realized. Since 2004,
we have sustained increasing profitability and utilized all of our federal net
operating loss carry forwards. Each quarter, we analyze each deferred tax asset
to determine the amount that is more likely than not to be realized, based upon
the weight of available evidence, and adjust the valuation allowance to the
amount of deferred taxes that do not meet the criteria for recognition under
SFAS No. 109. Currently, we only maintain a valuation allowance with respect to
certain state and foreign net operating losses that may not be
recovered.</FONT></P>
<P align=justify><B><I><FONT face=serif size=2>Inventory Valuation.
</FONT></I></B><FONT face=serif size=2>We value our inventory at the lower of
cost (first-in, first-out method) or net realizable value. We regularly review
inventory quantities and record a write-down for excess and obsolete inventory.
The write-down is primarily based on historical inventory usage adjusted for
expected changes in product demand and production requirements. However, our
industry is characterized by customers in highly cyclical industries, rapid
technological changes, frequent new product developments and rapid product
obsolescence. Changes in demand for our products and product mix could result in
further write-downs.</FONT></P>
<P align=justify><B><I><FONT face=serif size=2>Allowance for Doubtful Accounts.
</FONT></I></B><FONT face=serif size=2>We maintain an allowance for doubtful
accounts for estimated losses resulting from the inability of our customers to
make required payments. This allowance is based on historical experience, credit
evaluations, specific customer collection history and any customer-specific
issues we have identified. Since a significant portion of our revenue is derived
from the sale of high-value systems, our accounts receivable are often
concentrated in a relatively few number of customers. A significant change in
the liquidity or financial position of any one of these customers could have a
material adverse impact on the collectibility of our accounts receivable and our
future operating results.</FONT></P>
<P align=justify><B><I><FONT face=serif size=2>Warranty. </FONT></I></B><FONT face=serif size=2>We provide a limited warranty, generally for 12 to 24 months,
to our customers. A provision for the estimated cost of providing warranty
coverage is recorded upon shipment of all systems. On occasion, we have been
required and may be required in the future to provide additional warranty
coverage to ensure that the systems are ultimately accepted or to maintain
customer goodwill. While our warranty costs have historically been within our
expectations and we believe that the amounts accrued for warranty expenditures
are sufficient for all systems sold through December 31, 2008, we cannot
guarantee that we will continue to experience a similar level of predictability
with regard to warranty costs. In addition, technological changes or previously
unknown defects in raw materials or components may result in more extensive and
frequent warranty service than anticipated, which could result in an increase in
our warranty expense.</FONT></P>
<P align=justify><B><I><FONT face=serif size=2>Impairment of Long-lived Assets.
</FONT></I></B><FONT face=serif size=2>We periodically evaluate whether events
and circumstances have occurred that indicate the estimated useful lives of
long-lived assets or intangible assets may warrant revision or that the
remaining balance may not be recoverable. Goodwill is also tested for impairment
at least annually. When factors indicate that an asset should be evaluated for
possible impairment, we use an estimate of the related undiscounted net cash
flows generated by the asset over the remaining estimated life of the asset in
measuring whether the asset is recoverable. We make judgments and estimates used
in establishing the carrying value of long-lived or intangible assets. Those
judgments and estimates could be modified if adverse changes occurred in the
future resulting in an inability to recover the carrying value of these assets.
We have not experienced any impairment to long-lived assets during fiscal 2008,
2007 or 2006. Future adverse changes could be caused by, among other factors, a
downturn in the semiconductor industry, a general economic slowdown, reduced
demand for our products in the marketplace, poor operating results, the
inability to protect intellectual property or changing technologies and product
obsolescence.</FONT></P>
<P align=justify><B><FONT face=serif size=2>Impact of Recently Issued Accounting
Pronouncements</FONT></B></P>
<P align=justify><FONT face=serif size=2>For discussion of the impact of
recently issued accounting pronouncements, see &#147;Part 1. Financial Information&#148;
in Note 1 to the financial statements under &#147;Impact of Recently Issued
Accounting Pronouncements&#148;. </FONT></P>
<P align=center><FONT face=serif size=2>22</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><B><FONT face=serif size=2>ITEM 3. QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK </FONT></B></P>
<P align=justify><FONT face=serif size=2>We are exposed to financial market
risks, including changes in foreign currency exchange rates and interest rates.
Our operations in the United States are conducted in U.S. dollars. Our
operations in Europe, a component of the solar and semiconductor equipment
segment, conduct business primarily in the Euro, but also sell products in Asia
in the U.S. dollar. The functional currency of our European operation is the
Euro. Nearly all of the transactions, assets and liabilities of all other
operating units are denominated in the U.S. dollar, their functional currency.
The following disclosures about market risk should be read in conjunction with
the more in depth discussion in Item 7A, Quantitative and Qualitative
Disclosures About Market Risk in our Annual Report on Form 10-K for the fiscal
year ended September 30, 2008.</FONT></P>
<P align=justify><FONT face=serif size=2>As of December 31, 2008, we did not
hold any stand-alone or separate derivative instruments. We incurred net foreign
currency transaction gains or losses of less than $0.1 million during the three
months ended December 31, 2008 and 2007. As of December 31, 2008, our foreign
subsidiaries had $1.9 million of assets (cash and receivables) denominated in
currencies other than the functional currency. A 10% change in the value of the
functional currency relative to the non-functional currency would result in a
gain or loss of $0.2 million. As of December 31, 2008, we had $1.5 million of
accounts payable, consisting primarily of amounts owed by our foreign
subsidiaries to our U.S. companies, denominated in U.S. dollars. Although the
intercompany accounts are eliminated in consolidation, a 10% change in the value
of the euro relative to the U.S. dollar would result in a gain or loss of $0.2
million. Our net investment in and advances to our foreign operations totaled
$36.7 million as of December 31, 2008. A 10% change in the value of the euro
relative to the U.S. dollar would cause an approximately $3.7 million foreign
currency translation adjustment, a type of other comprehensive income (loss),
which would be a direct adjustment to our stockholders&#146; equity.</FONT></P>
<P align=justify><FONT face=serif size=2>During three months ended December 31,
2008 and 2007, our European operations transacted U.S. dollar denominated sales
and purchases of $1.3 million and $1.3 million, respectively. As of December 31,
2008, sales commitments denominated in a currency other than the function
currency of our transacting operation totaled $2.8 million. Our lead-times to
fulfill these commitments generally range between 13 and 26 weeks. A 10% change
in the relevant exchange rates between the time the order was taken and the time
of shipment would cause our gross profit on such orders to be less than $0.3
million greater than or less than expected on the date the order was
taken.</FONT></P>
<P align=justify><B><FONT face=serif size=2>ITEM 4. CONTROLS AND
PROCEDURES</FONT></B><FONT face=serif size=2> </FONT></P>
<P align=justify><B><I><FONT face=serif size=2>Disclosure Controls and
Procedures</FONT></I></B><FONT face=serif size=2> </FONT></P>
<P align=justify><FONT face=serif size=2>Our management, including the Chief
Executive Officer (&#147;CEO&#148;) and the Chief Financial Officer (&#147;CFO&#148;), has carried
out an evaluation of the effectiveness of our disclosure controls and procedures
as of December 31, 2008, pursuant to Exchange Act Rules 13a-15(e) and
15(d)-15(e). Based upon that evaluation, our CEO and CFO have concluded that as
of such date, our disclosure controls and procedures in place are
effective.</FONT></P>
<P align=justify><B><I><FONT face=serif size=2>Changes in Internal Control Over
Financial Reporting</FONT></I></B><FONT face=serif size=2> </FONT></P>
<P align=justify><FONT face=serif size=2>There has been no change in Amtech&#146;s
internal control over financial reporting during the first quarter of fiscal
2009 that has materially affected, or is reasonably likely to materially affect,
its internal control over financial reporting.</FONT></P>
<P align=center><FONT face=serif size=2>23</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><B><FONT face=serif size=2>PART II. OTHER INFORMATION
</FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="10%"><B><FONT face=serif size=2>Item
      6.</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="84%"><B><FONT face=serif size=2>Exhibits</FONT></B> </TD>
    <TD noWrap align=left width="3%">&nbsp; </TD>
    <TD noWrap align=left width="2%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD  align=left width="10%"><FONT face=serif size=2>31.1</FONT></TD>
    <TD  align=left width="84%">
      <P align=justify><FONT size=2>Certification of Chief Executive Officer
      Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of
      1934, as Amended</FONT></P></TD>
    <TD noWrap align=left width="3%">&nbsp; </TD>
    <TD  noWrap align=center width="2%"><FONT face=serif size=2>*</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD  align=left width="10%">&nbsp;&nbsp; </TD>
    <TD  align=left width="84%"><FONT face=serif size=2>&nbsp;</FONT></TD>
    <TD noWrap align=left width="3%">&nbsp; </TD>
    <TD  noWrap align=center width="2%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD  align=left width="10%"><FONT face=serif size=2>31.2</FONT></TD>
    <TD  align=left width="84%">
      <P align=justify><FONT size=2>Certification of Chief Financial Officer
      Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of
      1934, as Amended</FONT></P></TD>
    <TD noWrap align=left width="3%">&nbsp; </TD>
    <TD  noWrap align=center width="2%"><FONT face=serif size=2>*</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD  align=left width="10%">&nbsp;&nbsp; </TD>
    <TD  align=left width="84%"><FONT face=serif size=2>&nbsp;</FONT></TD>
    <TD noWrap align=left width="3%">&nbsp; </TD>
    <TD  noWrap align=center width="2%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD  align=left width="10%"><FONT face=serif size=2>32.1</FONT></TD>
    <TD  align=left width="84%">
      <P align=justify><FONT face=serif size=2>Certification of Chief Executive
      Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section
      906 of the Sarbanes-Oxley Act of 2002</FONT></P></TD>
    <TD noWrap align=left width="3%">&nbsp; </TD>
    <TD  noWrap align=center width="2%"><FONT face=serif size=2>*</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD  align=left width="10%">&nbsp;&nbsp; </TD>
    <TD  align=left width="84%"><FONT face=serif size=2>&nbsp;</FONT></TD>
    <TD noWrap align=left width="3%">&nbsp; </TD>
    <TD  noWrap align=center width="2%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD  align=left width="10%"><FONT face=serif size=2>32.2</FONT></TD>
    <TD  align=left width="84%">
      <P align=justify><FONT face=serif size=2>Certification of Chief Financial
      Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section
      906 of the Sarbanes-Oxley Act of 2002</FONT></P></TD>
    <TD noWrap align=left width="3%">&nbsp; </TD>
    <TD  noWrap align=center width="2%"><FONT face=serif size=2>*</FONT></TD></TR></TABLE>____________________<BR>
<P align=justify><FONT face=serif size=2>*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Filed herewith.</FONT></P>
<P align=center><FONT face=serif size=2>24</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><FONT face=serif size=2>SIGNATURES </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Pursuant to
the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned thereunto duly
authorized. </FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>AMTECH SYSTEMS, INC. </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=center width="1%">&nbsp;&nbsp; &nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #ffffff 1pt solid" noWrap align=left width="1%"><FONT size=2>By </FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="33%"><FONT face=serif size=2>/s/ Robert T. Hass</FONT>&nbsp; </TD>
    <TD noWrap align=left width="15%">&nbsp;</TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #ffffff 1pt solid" noWrap align=left width="3%"><FONT face=serif size=2>Dated: </FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="7%"><FONT face=serif size=2>February 9, 2009</FONT> </TD>
    <TD noWrap align=left width="39%">&nbsp;</TD></TR>
  <TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%" colSpan=6>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="48%" colSpan=2><FONT face=serif size=2>Robert
      T. Hass</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%">&nbsp; </TD>
    <TD noWrap align=left width="46%" colSpan=2>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="48%" colSpan=2><FONT face=serif size=2>Chief
      Accounting Officer</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%">&nbsp; </TD>
    <TD noWrap align=left width="46%" colSpan=2>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="48%" colSpan=2><FONT face=serif size=2>(Principal Accounting Officer)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%">&nbsp; </TD>
    <TD noWrap align=left width="46%" colSpan=2>&nbsp;
</TD></TR></TABLE><BR>
<P align=center><FONT face=serif><FONT size=2>25</FONT></FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><B><FONT face=serif size=2>EXHIBIT INDEX </FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="4%"><B><FONT face=serif size=2>Exhibit</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="80%"></TD>
    <TD noWrap align=left width="5%">&nbsp; </TD>
    <TD noWrap align=left width="5%"><B><FONT face=serif size=2>Page
      or</FONT></B>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="4%"><B><FONT face=serif size=2>Number</FONT></B> </TD>
    <TD noWrap align=left width="5%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="80%"><B><FONT face=serif size=2>Description</FONT></B> </TD>
    <TD noWrap align=left width="5%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="5%"><B><FONT face=serif size=2>Method of Filing</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD  noWrap align=left width="4%" bgColor=#cceeff><FONT face=serif size=2>31.1</FONT></TD>
    <TD  noWrap align=left width="5%" bgColor=#cceeff></TD>
    <TD  align=left width="80%" bgColor=#cceeff>
      <P align=justify><FONT size=2>Certification of Chief Executive Officer
      Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of
      1934, as Amended</FONT></P></TD>
    <TD  align=left width="5%" bgColor=#cceeff>&nbsp;</TD>
    <TD  noWrap align=center width="5%" bgColor=#cceeff><FONT face=serif size=2>*</FONT></TD></TR>
  <TR>
    <TD  align=left width="99%" colSpan=5>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD  noWrap align=left width="4%" bgColor=#cceeff><FONT face=serif size=2>31.2</FONT></TD>
    <TD  noWrap align=left width="5%" bgColor=#cceeff></TD>
    <TD  align=left width="80%" bgColor=#cceeff>
      <P align=justify><FONT size=2>Certification of Chief Financial Officer
      Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of
      1934, as Amended</FONT></P></TD>
    <TD  align=left width="5%" bgColor=#cceeff>&nbsp; </TD>
    <TD  noWrap align=center width="5%" bgColor=#cceeff><FONT face=serif size=2>*</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD  noWrap align=left width="4%">&nbsp; </TD>
    <TD  noWrap align=left width="5%"></TD>
    <TD  align=left width="80%"><FONT face=serif size=2>&nbsp;</FONT></TD>
    <TD  align=left width="5%"><FONT face=serif size=2></FONT></TD>
    <TD  noWrap align=center width="5%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD  noWrap align=left width="4%" bgColor=#cceeff><FONT face=serif size=2>32.1</FONT></TD>
    <TD  noWrap align=left width="5%" bgColor=#cceeff></TD>
    <TD  align=left width="80%" bgColor=#cceeff>
      <P align=justify><FONT face=serif size=2>Certification of Chief Executive
      Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section
      906 of the Sarbanes-Oxley Act of 2002</FONT></P></TD>
    <TD  align=left width="5%" bgColor=#cceeff>&nbsp;</TD>
    <TD  noWrap align=center width="5%" bgColor=#cceeff><FONT face=serif size=2>*</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD  noWrap align=left width="4%">&nbsp; </TD>
    <TD  noWrap align=left width="5%"></TD>
    <TD  align=left width="80%"><FONT face=serif size=2>&nbsp;</FONT></TD>
    <TD  align=left width="5%">&nbsp; </TD>
    <TD  noWrap align=center width="5%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD  noWrap align=left width="4%" bgColor=#cceeff><FONT face=serif size=2>32.2</FONT></TD>
    <TD  noWrap align=left width="5%" bgColor=#cceeff></TD>
    <TD  align=left width="80%" bgColor=#cceeff>
      <P align=justify><FONT face=serif size=2>Certification of Chief Financial
      Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section
      906 of the Sarbanes-Oxley Act of 2002</FONT></P></TD>
    <TD  align=left width="5%" bgColor=#cceeff>&nbsp;</TD>
    <TD  noWrap align=center width="5%" bgColor=#cceeff><FONT face=serif size=2>*</FONT></TD></TR></TABLE>____________________<BR>
<P align=justify><FONT face=serif size=2>* Filed herewith.</FONT></P>
<P align=center><FONT face=serif size=2>26</FONT></P>
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<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>2
<FILENAME>exhibit31-1.htm
<DESCRIPTION>CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO RULE 13A-14(A)/15D-14(A)
<TEXT>

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<P align=center><FONT face=serif size=2>Exhibit 31.1</FONT></P>
<P align=center><FONT face=serif size=2>AMTECH SYSTEMS, INC. AND ITS
SUBSIDIARIES<BR>CERTIFICATION PURSUANT TO RULE 13a-14(a)/15d-14(a)<BR>OF THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED </FONT></P>
<P align=left><FONT face=serif size=2>I, Jong S. Whang, certify that:
</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>1. I have
reviewed this Quarterly Report on Form 10-Q of Amtech Systems, Inc. (the
&#147;registrant&#148;),</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>2. Based on my knowledge, this report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material respects the
financial position, results of operations and cash flows of the registrant as
of, and for, the periods presented in this report;</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>4. The registrant&#146;s other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial
reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the
registrant and we have:</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(a)
Designed such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure that
material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this report is being prepared;</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(b)
Designed such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles;</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(c)
Evaluated the effectiveness of the registrant&#146;s disclosure controls and
procedures and presented in this report our conclusions about the effectiveness
of the disclosure controls and procedures, as of the end of the period covered
by this report based on such evaluation; and</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(d)
Disclosed in this report any change in the registrant&#146;s internal control over
financial reporting that occurred during the registrant&#146;s most recent fiscal
quarter that has materially affected, or is reasonably likely to materially
affect, the registrant&#146;s internal control over financial reporting;
and</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>5. The registrant&#146;s other certifying officer and I have disclosed, based
on our most recent evaluation of internal control over financial reporting, to
the registrant&#146;s auditors and the audit committee of registrant&#146;s board of
directors (or persons performing the equivalent functions):</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(a) All
significant deficiencies and material weaknesses in the design or operation of
internal control over financial reporting which are reasonably likely to
adversely affect the registrant&#146;s ability to record, process, summarize and
report financial information; and</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(b) Any
fraud, whether or not material, that involves management or other employees who
have a significant role in the registrant&#146;s internal control over financial
reporting.</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="10%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #ffffff 1pt solid" noWrap align=left width="11%"><FONT face=serif size=2>By<FONT size=3>&nbsp;</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"><FONT size=2>/s/ Jong S.
      Whang</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=2><FONT face=serif size=2>Jong S. Whang</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=2><FONT face=serif size=2>President and Chief Executive Officer</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=2><FONT face=serif size=2>Amtech Systems, Inc.</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=2><FONT face=serif size=2>Date: February 9, 2009</FONT>&nbsp; </TD></TR></TABLE><BR>
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<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>3
<FILENAME>exhibit31-2.htm
<DESCRIPTION>CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO RULE 13A-14(A)/15D-14(A)
<TEXT>

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<P align=center><FONT face=serif size=2>Exhibit 31.2 </FONT></P>
<P align=center><FONT face=serif size=2>AMTECH SYSTEMS, INC. AND ITS
SUBSIDIARIES<BR>CERTIFICATION PURSUANT TO RULE 13a-14(a)/15d-14(a)<BR>OF THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED </FONT></P>
<P align=left><FONT face=serif size=2>I, Bradley C. Anderson, certify that:
</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>1. I have
reviewed this Quarterly Report on Form 10-Q of Amtech Systems, Inc. (the
&#147;registrant&#148;), </FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>2. Based on my knowledge, this report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this report;
</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material respects the
financial position, results of operations and cash flows of the registrant as
of, and for, the periods presented in this report; </FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>4. The registrant&#146;s other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial
reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the
registrant and we have:</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(a)
Designed such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure that
material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this report is being prepared;</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(b)
Designed such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles;</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(c)
Evaluated the effectiveness of the registrant&#146;s disclosure controls and
procedures and presented in this report our conclusions about the effectiveness
of the disclosure controls and procedures, as of the end of the period covered
by this report based on such evaluation; and</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(d)
Disclosed in this report any change in the registrant&#146;s internal control over
financial reporting that occurred during the registrant&#146;s most recent fiscal
quarter that has materially affected, or is reasonably likely to materially
affect, the registrant&#146;s internal control over financial reporting;
and</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>5. The registrant&#146;s other certifying officer and I have disclosed, based
on our most recent evaluation of internal control over financial reporting, to
the registrant&#146;s auditors and the audit committee of registrant&#146;s board of
directors (or persons performing the equivalent functions):</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(a) All
significant deficiencies and material weaknesses in the design or operation of
internal control over financial reporting which are reasonably likely to
adversely affect the registrant&#146;s ability to record, process, summarize and
report financial information; and</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(b) Any
fraud, whether or not material, that involves management or other employees who
have a significant role in the registrant&#146;s internal control over financial
reporting. </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="10%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #ffffff 1pt solid" noWrap align=left width="15%"><FONT face=serif size=2>By</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%"><FONT size=2>/s/ Bradley C.
      Anderson</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=2><FONT face=serif size=2>Bradley C. Anderson</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=2><FONT face=serif size=2>Chief Financial Officer</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=2><FONT face=serif size=2>Amtech Systems, Inc.</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=2><FONT face=serif size=2>Date: February 9, 2009</FONT> </TD></TR></TABLE><BR>
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<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>4
<FILENAME>exhibit32-1.htm
<DESCRIPTION>CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. SECTION 1350
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<P align=center><FONT face=serif size=2>Exhibit 32.1 </FONT></P>
<P align=center><FONT face=serif size=2>AMTECH SYSTEMS, INC. AND ITS
SUBSIDIARIES </FONT></P>
<P align=center><FONT face=serif size=2>CERTIFICATION PURSUANT TO<BR>18 U.S.C.
SECTION 1350,<BR>AS ADOPTED PURSUANT TO<BR></FONT><FONT face=serif size=2>SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In
connection with the Quarterly Report of Amtech Systems, Inc. (the &#147;Company&#148;) on
Form 10-Q for the period ended December 31, 2008, as filed with the Securities
and Exchange Commission on the date hereof (the &#147;Report&#148;), I, Jong S. Whang,
President and Chief Executive Officer of the Company, certify, pursuant to 18
U.S.C. ss. 1350, as adopted pursuant to ss. 906 of the Sarbanes-Oxley Act of
2002, that: </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(1) The
Report fully complies with the requirements of Section 13(a) or 15(d) of the
Securities Exchange Act of 1934; and </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(2) The
information contained in the Report fairly presents, in all material respects,
the financial condition and result of operations of the Company. </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="15%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #ffffff 1pt solid" noWrap align=left width="10%"><FONT face=serif size=2>By<FONT size=3>&nbsp;</FONT></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%"><FONT size=2>/s/ Jong S. Whang</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=2><FONT face=serif size=2>Jong S. Whang</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=2><FONT face=serif size=2>President and Chief Executive Officer</FONT>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=2><FONT face=serif size=2>Date: February 9, 2009</FONT>&nbsp;
  </TD></TR></TABLE><BR>
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<DOCUMENT>
<TYPE>EX-32.2
<SEQUENCE>5
<FILENAME>exhibit32-2.htm
<DESCRIPTION>CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350
<TEXT>

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<P align=center><FONT face=serif size=2>Exhibit 32.2 </FONT></P>
<P align=center><FONT face=serif size=2>AMTECH SYSTEMS, INC. AND ITS
SUBSIDIARIES </FONT></P>
<P align=center><FONT face=serif size=2>CERTIFICATION PURSUANT TO<BR>18 U.S.C.
SECTION 1350,<BR>AS ADOPTED PURSUANT TO<BR></FONT><FONT face=serif size=2>SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In
connection with the Quarterly Report of Amtech Systems, Inc. (the &#147;Company&#148;) on
Form 10-Q for the period ended December 31, 2008, as filed with the Securities
and Exchange Commission on the date hereof (the &#147;Report&#148;), I, Bradley C.
Anderson, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C.
ss. 1350, as adopted pursuant to ss. 906 of the Sarbanes-Oxley Act of 2002,
that:</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(1) The
Report fully complies with the requirements of Section 13(a) or 15(d) of the
Securities Exchange Act of 1934; and </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(2) The
information contained in the Report fairly presents, in all material respects,
the financial condition and result of operations of the Company. </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="10%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #ffffff 1pt solid" noWrap align=left width="15%"><FONT face=serif size=2>By<FONT size=3>&nbsp;</FONT></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%"><FONT size=2><FONT face=serif>/s/ Bradley C.
      Anderson</FONT></FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=2><FONT face=serif size=2>Bradley C. Anderson</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=2><FONT face=serif size=2>Chief Financial Officer</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=2><FONT face=serif size=2>Date: February 9, 2009</FONT>&nbsp; </TD></TR></TABLE><BR>
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