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<SEC-DOCUMENT>0001206774-09-001517.txt : 20090806
<SEC-HEADER>0001206774-09-001517.hdr.sgml : 20090806
<ACCEPTANCE-DATETIME>20090806160022
ACCESSION NUMBER:		0001206774-09-001517
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20090630
FILED AS OF DATE:		20090806
DATE AS OF CHANGE:		20090806

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:		09991638

	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>

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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<BR></FONT></B><B><FONT face=serif size=5>__________<BR>FORM 10-Q</FONT></B></P>
<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%"><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="99%"><FONT face=serif size=2>For the
      quarterly period ended: June 30,
      2009</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
  <TR>
    <TD width="99%"><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=center width="99%"><FONT face=serif size=2>OR</FONT></TD></TR>
  <TR>
    <TD width="99%"><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="99%">&nbsp; &nbsp; &nbsp;<FONT face=serif size=2>[&nbsp; &nbsp;] 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=2><B><FONT face=serif size=5>AMTECH SYSTEMS,
      INC.</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="99%" colSpan=2><FONT face=serif size=2>(Exact name of registrant as specified in its charter)</FONT></TD></TR>
  <TR>
    <TD noWrap align=center width="49%"><FONT size=2>&nbsp;</FONT></TD>
    <TD noWrap align=center width="50%"><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=center width="49%"><FONT face=serif size=2>Arizona</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=center width="50%"><FONT face=serif size=2>86-0411215</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="49%"><FONT face=serif size=2>(State or
      other jurisdiction of</FONT></TD>
    <TD noWrap align=center width="50%"><FONT face=serif size=2>(I.R.S.
      Employer</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="49%"><FONT face=serif size=2>incorporation
      or organization)</FONT></TD>
    <TD noWrap align=center width="50%"><FONT face=serif size=2>Identification
      No.)</FONT></TD></TR>
  <TR>
    <TD noWrap align=center width="49%"><FONT size=2>&nbsp;</FONT></TD>
    <TD noWrap align=center width="50%"><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=center width="49%"><FONT face=serif size=2>131 South Clark Drive, Tempe,
      Arizona</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=center width="50%"><FONT face=serif size=2>85281</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="49%"><FONT face=serif size=2>(Address of
      principal executive offices)</FONT></TD>
    <TD noWrap align=center width="50%"><FONT face=serif size=2>(Zip
      Code)</FONT></TD></TR></TABLE>
<P align=justify><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=justify><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
[&nbsp;&nbsp; ] No</FONT></P>
<P align=justify><FONT face=serif size=2>Indicate by check mark whether the
registrant has submitted electronically and posted on its corporate Web site, if
any, every Interactive Data File required to be submitted and posted pursuant to
Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter
period that the registrant was required to submit and post such files).
[&nbsp;&nbsp; ] Yes [&nbsp;&nbsp; ] No. </FONT></P>
<P align=justify><FONT face=serif size=2>Indicate by check mark whether the
registrant is a large accelerated filer, an accelerated filer, a non-accelerated
filer, or a smaller reporting company. See the definitions of &#147;large accelerated
filer,&#148; &#147;accelerated filer&#148; and &#147;smaller reporting company&#148; in Rule 12b-2 of the
Exchange Act. (Check one): </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD width="90%">
      <P align=justify><FONT face=serif size=2>Large accelerated filer
      [&nbsp;&nbsp; ]</FONT></P></TD>
    <TD noWrap width="10%"><FONT size=2>Accelerated filer [X]</FONT></TD></TR>
  <TR>
    <TD width="90%"><FONT size=2>&nbsp;</FONT></TD>
    <TD width="10%"><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD width="90%"><FONT size=2>Non-accelerated filer [&nbsp;&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;[&nbsp;&nbsp; ]</FONT></P></TD></TR></TABLE>
<DIV style="MARGIN-TOP: 10pt" align=justify><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 [&nbsp;&nbsp; ] No [X]</FONT></DIV>
<DIV style="MARGIN-TOP: 10pt" align=center><FONT face=serif size=2>Shares of
Common Stock outstanding as of August 4, 2009: 8,959,994</FONT></DIV>


<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 style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="97%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2>Page</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%" bgColor=#cceeff><B><FONT face=serif size=2>PART I. FINANCIAL INFORMATION</FONT></B></TD>
    <TD noWrap align=right width="2%" bgColor=#cceeff></TD></TR>
  <TR>
    <TD noWrap align=left width="97%">&nbsp;</TD>
    <TD noWrap align=right width="2%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%" bgColor=#cceeff><B><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Item 1. Condensed Consolidated
      Financial Statements</FONT></B></TD>
    <TD noWrap align=right width="2%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%"><FONT face=serif size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </STRONG>Condensed Consolidated Balance Sheets</FONT></TD>
    <TD noWrap align=right width="2%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%"><FONT face=serif size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </STRONG>June 30, 2009 (Unaudited) and September 30, 2008</FONT></TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>3</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%" bgColor=#cceeff><FONT face=serif size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </STRONG>Condensed Consolidated Statements of Operations
    (Unaudited)</FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%" bgColor=#cceeff><FONT face=serif size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </STRONG>Three and Nine Months Ended June 30, 2009 and 2008</FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#cceeff><FONT face=serif size=2>5</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%"><FONT face=serif size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </STRONG>Condensed Consolidated Statements of Cash Flows
    (Unaudited)</FONT></TD>
    <TD noWrap align=right width="2%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%"><FONT face=serif size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </STRONG>Nine Months Ended June 30, 2009 and 2008</FONT></TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>6</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%" bgColor=#cceeff><FONT face=serif size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </STRONG>Notes to Condensed Consolidated Financial Statements
      (Unaudited)</FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#cceeff><FONT face=serif size=2>7</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="97%">&nbsp;</TD>
    <TD noWrap align=right width="2%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%" bgColor=#cceeff><B><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Item 2. Management&#146;s
      Discussion and Analysis of Financial Condition and Results</FONT></B></TD>
    <TD noWrap align=right width="2%" bgColor=#cceeff>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%" bgColor=#cceeff><B><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      of Operations</FONT></B></TD>
    <TD noWrap align=right width="2%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%"><FONT face=serif size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </STRONG>Caution Regarding Forward-Looking Statements</FONT></TD>
    <TD noWrap align=right width="2%"><FONT size=2>18</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%" bgColor=#cceeff><FONT face=serif size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </STRONG>Overview</FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#cceeff><FONT face=serif size=2>19</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%"><FONT face=serif size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </STRONG>Results of Operations</FONT></TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>19</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%" bgColor=#cceeff><FONT face=serif size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </STRONG>Liquidity and Capital Resources</FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#cceeff><FONT face=serif size=2>23</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%"><FONT face=serif size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </STRONG>Off-Balance Sheet Arrangements</FONT></TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>24</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%" bgColor=#cceeff><FONT face=serif size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </STRONG>Contractual Obligations</FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#cceeff><FONT size=2>24</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%"><FONT face=serif size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </STRONG>Critical Accounting Policies</FONT></TD>
    <TD noWrap align=right width="2%"><FONT size=2>25</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%" bgColor=#cceeff><FONT face=serif size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </STRONG>Impact of Recently Issued Accounting Pronouncements</FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#cceeff><FONT size=2>28</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="97%">&nbsp;</TD>
    <TD noWrap align=right width="2%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%" bgColor=#cceeff><B><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Item 3. Quantitative and
      Qualitative Disclosures About Market Risk</FONT></B></TD>
    <TD noWrap align=right width="2%" bgColor=#cceeff><FONT face=serif size=2>29</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="97%">&nbsp;</TD>
    <TD noWrap align=right width="2%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%" bgColor=#cceeff><B><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Item 4. Controls and
      Procedures</FONT></B></TD>
    <TD noWrap align=right width="2%" bgColor=#cceeff><FONT face=serif size=2>29</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="97%">&nbsp;</TD>
    <TD noWrap align=right width="2%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%" bgColor=#cceeff><B><FONT face=serif size=2>PART II. OTHER INFORMATION</FONT></B></TD>
    <TD noWrap align=right width="2%" bgColor=#cceeff></TD></TR>
  <TR>
    <TD noWrap align=left width="97%">&nbsp;</TD>
    <TD noWrap align=right width="2%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%" bgColor=#cceeff><B><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Item 1A. Risk
      Factors</FONT></B></TD>
    <TD noWrap align=right width="2%" bgColor=#cceeff><FONT face=serif size=2>30</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="97%">&nbsp;</TD>
    <TD noWrap align=right width="2%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%" bgColor=#cceeff><B><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Item 6. Exhibits</FONT></B></TD>
    <TD noWrap align=right width="2%" bgColor=#cceeff><FONT face=serif size=2>31</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="97%">&nbsp;</TD>
    <TD noWrap align=right width="2%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%" bgColor=#cceeff><B><FONT face=serif size=2>SIGNATURES</FONT></B></TD>
    <TD noWrap align=right width="2%" bgColor=#cceeff><FONT face=serif size=2>32</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="97%">&nbsp;</TD>
    <TD noWrap align=right width="2%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%" bgColor=#cceeff><B><FONT face=serif size=2>EXHIBIT INDEX</FONT></B></TD>
    <TD noWrap align=right width="2%" bgColor=#cceeff><FONT face=serif size=2>33</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 style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="6%" colSpan=2><B><FONT face=serif size=2>June 30,</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%" colSpan=2><B><FONT face=serif size=2>September 30,</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"></TD>
    <TD noWrap align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%" colSpan=2><B><FONT face=serif size=2>2009</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="6%" colSpan=2><B><FONT face=serif size=2>2008</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="6%" colSpan=2><FONT face=serif size=2>(Unaudited)</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%"><B><FONT face=serif size=2>Assets</FONT></B></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="4%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#cceeff><B><FONT face=serif size=2>Current Assets</FONT></B></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="4%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="4%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash
      equivalents</FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>39,905</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>37,501</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted cash</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>448</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>2,005</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable</FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="4%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Trade (less allowance for doubtful accounts of $618 and $588 at</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>9,236</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>17,639</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      June 30, 2009 and September 30, 2008, respectively)</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="4%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="4%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Unbilled and other</FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>6,076</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>5,376</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>12,436</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>15,902</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income
taxes</FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>2,500</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>4,500</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>1,963</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>1,511</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Total current assets</FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>72,564</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>84,434</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=7>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#cceeff><B><FONT face=serif size=2>Property, Plant and Equipment - Net</FONT></B></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>8,421</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>8,409</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"><B><FONT face=serif size=2>Intangible
      Assets - Net</FONT></B></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>3,835</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>4,384</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#cceeff><B><FONT face=serif size=2>Goodwill</FONT></B></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>4,480</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=right width="4%" bgColor=#cceeff><FONT face=serif size=2>4,450</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"><B><FONT face=serif size=2>Restricted
      cash - non-current</FONT></B></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=2>492</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=2>678</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <STRONG>Total
      Assets</STRONG></FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="2%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>89,792</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="2%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>102,355</FONT>
</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 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 style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="83%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=center width="7%" colSpan=3><B><FONT face=serif size=2>June 30,</FONT></B></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="6%" colSpan=2><B><FONT face=serif size=2>September 30,</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%"></TD>
    <TD noWrap align=left width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="7%" colSpan=3><B><FONT face=serif size=2>2009</FONT></B></TD>
    <TD noWrap align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%" colSpan=2><B><FONT face=serif size=2>2008</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=center width="7%" colSpan=3><FONT face=serif size=2>(Unaudited)</FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="83%"><B><FONT face=serif size=2>Liabilities and Stockholders'
      Equity</FONT></B></TD>
    <TD noWrap align=left width="2%">&nbsp;</TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="4%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#cceeff><B><FONT face=serif size=2>Current Liabilities</FONT></B></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="4%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="4%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable</FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>2,039</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>6,529</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank loans and current
      maturities of long-term debt</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>117</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>148</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued compensation and
      related taxes</FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>2,915</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>4,553</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued warranty
    expense</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>1,367</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>1,155</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred profit</FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>4,883</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>5,352</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Customer deposits</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>2,962</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>4,859</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other accrued
      liabilities</FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>1,515</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>2,503</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes payable</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>400</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>1,060</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Total current liabilities</FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>16,198</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>26,159</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=8>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#cceeff><B><FONT face=serif size=2>Income Taxes Payable Long-term</FONT></B></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>500</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>440</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%"><B><FONT face=serif size=2>Deferred
      Income Taxes Long-term</FONT></B></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>430</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>940</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#cceeff><B><FONT face=serif size=2>Other Long-Term Obligations</FONT></B></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#cceeff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>191</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>283</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Total liabilities</FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>17,319</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>27,822</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=8>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#cceeff><B><FONT face=serif size=2>Commitments and Contingencies</FONT></B></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="4%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="4%" bgColor=#cceeff></TD></TR>
  <TR>
    <TD width="100%" colSpan=8>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#cceeff><B><FONT face=serif size=2>Stockholders' Equity</FONT></B></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="4%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="4%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Preferred stock; 100,000,000
      shares authorized; none issued</FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>-</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>-</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock; $0.01 par value;
      100,000,000 shares authorized;</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="4%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="4%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      shares issued and outstanding: 8,959,994 and 9,096,048</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="4%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="4%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      at June 30, 2009 and September 30, 2008, respectively</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>90</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>91</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid-in
      capital</FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>70,187</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>70,135</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other
      comprehensive income (loss)</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>(656</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>67</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained Earnings</FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=2>2,852</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=2>4,240</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Total stockholders' equity</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>72,473</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="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>74,533</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <STRONG>Total Liabilities and
      Stockholders' Equity</STRONG></FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%"><FONT face=serif size=2>89,792</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%"><FONT face=serif size=2>102,355</FONT> </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 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>(Unaudited)<BR></FONT><B><FONT face=serif size=2>(in thousands, except per share data)</FONT></B></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="72%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="13%" colSpan=6><B><FONT face=serif size=2>Three Months Ended June
    30,</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="13%" colSpan=6><B><FONT face=serif size=2>Nine Months Ended June
    30,</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="7%" colSpan=3><B><FONT face=serif size=2>2009</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="5%" 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="7%" colSpan=3><B><FONT face=serif size=2>2009</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="5%" colSpan=2><B><FONT face=serif size=2>2008</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%" bgColor=#cceeff><FONT face=serif size=2>Revenues, net of returns and allowances</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12,528</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24,147</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41,304</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;53,479</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%"><FONT face=serif size=2>Cost of
      sales</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=2>8,946</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%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=2>17,069</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=2>29,279</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%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=2>38,714</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross profit</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>3,582</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></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>7,078</FONT></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="5%" bgColor=#cceeff><FONT face=serif size=2>12,025</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></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>14,765</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="72%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%" bgColor=#cceeff><FONT face=serif size=2>Selling, general and administrative</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>3,733</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></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>4,847</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="5%" bgColor=#cceeff><FONT face=serif size=2>11,318</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></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>12,115</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%"><FONT face=serif size=2>Impairment and
      restructuring charges</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><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%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>344</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>1,682</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>344</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%" bgColor=#cceeff><FONT face=serif size=2>Research and development</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>151</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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>210</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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>527</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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>686</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating income
    (loss)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>(302</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%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>1,677</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>(1,502</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%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>1,620</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="72%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%" bgColor=#cceeff><FONT face=serif size=2>Interest and other income (expense), net</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>(33</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif 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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>248</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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>14</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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>749</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="72%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%" bgColor=#cceeff><FONT face=serif size=2>Income (loss) before income taxes</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>(335</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></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>1,925</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="5%" bgColor=#cceeff><FONT face=serif size=2>(1,488</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></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>2,369</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="72%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%" bgColor=#cceeff><FONT face=serif size=2>Income tax expense (benefit)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>(100</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif 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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>765</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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>(100</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif 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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>940</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <STRONG>Net income
      (loss)</STRONG></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="5%"><FONT face=serif size=2>(235</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%"><FONT face=serif size=2>1,160</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>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="5%"><FONT face=serif size=2>(1,388</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%"><FONT face=serif size=2>1,429</FONT></TD></TR>
  <TR>
    <TD width="99%" colSpan=14>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%" bgColor=#cceeff><B><FONT face=serif size=2>Earnings (Loss) Per Share:</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff></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></TD>
    <TD noWrap align=left width="4%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff></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></TD>
    <TD noWrap align=left width="4%" bgColor=#cceeff></TD></TR>
  <TR>
    <TD noWrap align=left width="72%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="4%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%" bgColor=#cceeff><FONT face=serif size=2>Basic earnings (loss) per share</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>(0.03</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>0.13</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>(0.15</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>0.17</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%"><FONT face=serif size=2>Weighted average
      shares outstanding</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>8,960</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>9,081</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>9,038</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="4%"><FONT face=serif size=2>8,593</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="72%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="5%"></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=right width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%" bgColor=#cceeff><FONT face=serif size=2>Diluted earnings (loss) per share</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>(0.03</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>0.13</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>(0.15</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>0.16</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%"><FONT face=serif size=2>Weighted average
      shares outstanding</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>8,960</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="4%"><FONT face=serif size=2>9,197</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>9,038</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>8,732</FONT></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 size=2>5</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE><BR>
<DIV align=justify><B><FONT face=serif size=2>AMTECH SYSTEMS, INC. AND
SUBSIDIARIES<BR>Condensed Consolidated Statements Of Cash
Flows<BR></FONT></B><FONT face=serif size=2>(Unaudited)<BR></FONT><B><FONT face=serif size=2>(in thousands)</FONT></B></DIV>
<TABLE style="LINE-HEIGHT: 12pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="86%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="14%" colSpan=7><B><FONT face=serif size=2>Nine Months Ended June
    30,</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%" colSpan=3><B><FONT face=serif size=2>2009</FONT></B></TD>
    <TD noWrap align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</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></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%" bgColor=#cceeff><B><FONT face=serif size=2>Operating Activities</FONT></B></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income
    (loss)</FONT></TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(1,388</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>1,429</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile
      net income (loss) to net</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;cash
      provided by (used in) operating activities:</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation
      and amortization</FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>1,138</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>1,095</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Write-down
      of inventory</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>392</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred
      income taxes</FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>1,374</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(1,790</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment
      of long-lived assets</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>1,062</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash
      share based compensation expense</FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>498</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>355</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>129</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>240</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating
      assets and liabilities:</FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted
      cash</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>1,773</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>362</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts
      receivable</FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>6,683</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(5,222</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>2,618</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(10,776</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="86%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued
      income taxes</FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(659</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>577</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid
      expenses and other assets</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(458</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(685</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="86%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts
      payable</FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(4,161</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>4,110</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued
      liabilities and customer deposits</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(3,920</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>4,872</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred
      profit</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>(309</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="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>1,615</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by
      (used in) operating activities</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>4,772</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(3,818</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD></TR>
  <TR>
    <TD style="LINE-HEIGHT: 8pt" width="100%" colSpan=8><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%" bgColor=#cceeff><B><FONT face=serif size=2>Investing Activities</FONT></B></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of property,
      plant and equipment</FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(1,046</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(2,434</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in restricted
      cash long-term</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>184</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(1,382</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="86%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment for licensing
      agreement</FONT></TD>
    <TD noWrap align=left width="2%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(800</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(400</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment in
    R2D</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(167</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(6,689</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in
      investing activities</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>(1,829</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="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>(10,905</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD></TR>
  <TR>
    <TD style="LINE-HEIGHT: 8pt" width="100%" colSpan=8><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%" bgColor=#cceeff><B><FONT face=serif size=2>Financing Activities</FONT></B></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of
      common stock, net</FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>33,934</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of common stock
      under repurchase program</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(448</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments on long-term
      obligations</FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(117</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(702</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Excess tax benefit of
      stock options</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" 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="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>69</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by
      (used in) financing activities</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>(565</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="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>33,301</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR>
    <TD style="LINE-HEIGHT: 8pt" width="100%" colSpan=8><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%" bgColor=#cceeff><B><FONT face=serif size=2>Effect of Exchange Rate Changes on Cash</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>26</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(160</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD></TR>
  <TR>
    <TD style="LINE-HEIGHT: 8pt" width="100%" colSpan=8><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%" bgColor=#cceeff><B><FONT face=serif size=2>Net Increase in Cash and Cash Equivalents</FONT></B></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>2,404</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>18,418</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%"><B><FONT face=serif size=2>Cash and Cash
      Equivalents, Beginning of Period</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><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="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><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="86%" bgColor=#cceeff><B><FONT face=serif size=2>Cash and Cash Equivalents, End of Period</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="2%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>39,905</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="2%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>36,788</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR>
    <TD style="LINE-HEIGHT: 8pt" width="100%" colSpan=8><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%" bgColor=#cceeff><B><FONT face=serif size=2>Supplemental Cash Flow Information:</FONT></B></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest paid</FONT></TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>20</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>189</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax
    refunds</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>1,473</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax
    payments</FONT></TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>550</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>2,188</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%" bgColor=#cceeff><B><FONT face=serif size=2>Supplemental Non-cash Financing Activities:</FONT></B></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transfer inventory to
      capital equipment</FONT></TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>116</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR></TABLE>
<P align=justify><FONT face=serif size=2>The accompanying notes are an integral
part of these condensed consolidated financial statements.</FONT></P>
<DIV align=center><FONT face=serif size=2>6</FONT></DIV>
<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 AND NINE MONTHS ENDED June 30, 2009
AND 2008<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, primarily 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 in 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 and nine month periods ended June 30, 2009, are not necessarily
indicative of the results to be expected for the full year. </FONT></P>
<P align=justify><B><FONT face=serif size=2>Reclassifications &#150; </FONT></B><FONT face=serif size=2>Certain reclassifications have been made in the accompanying
consolidated financial statements for fiscal 2008 to conform to the 2009
presentation. These reclassifications did not have a material effect on the
Company&#146;s financial statements. </FONT></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</FONT><FONT face=sans-serif size=2>.
</FONT><FONT face=serif size=2>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 size=2>7</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><B><FONT face=serif size=2>Deferred Profit</FONT></B><FONT face=serif size=2> &#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></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="89%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>June 30,</FONT></B></TD>
    <TD noWrap align=center width="2%"></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 noWrap align=left width="89%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>2009</FONT></B></TD>
    <TD noWrap align=center width="2%">&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></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%"></TD>
    <TD noWrap align=center width="10%" colSpan=5><B><FONT face=serif size=1>(dollars in thousands)</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#cceeff><FONT face=serif size=2>Deferred revenues</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>6,913</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>6,934</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%"><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="3%"><FONT face=serif size=2>2,030</FONT></TD>
    <TD noWrap align=left width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>1,582</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" 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>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>4,883</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" 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 collectability.</FONT></P>
<P align=justify><FONT face=serif size=2>As of June 30, 2009, three customers
accounted for 17%, 14% and 10% of accounts receivable,
individually.</FONT><B><FONT face=serif size=2> </FONT></B></P>
<P align=justify><B><FONT face=serif size=2>Restricted Cash</FONT></B><FONT face=serif size=2> &#150;</FONT><FONT face=serif> </FONT><FONT face=serif size=2>Current restricted cash of $0.4 million as of June 30, 2009 consists of
bank guarantees. The bank guarantees are required by certain customers from whom
deposits have been received in advance of shipment. Restricted cash - current of
$2.0 million as of September 30, 2008 consisted of bank guarantees of $1.0
million in excess of our European overdraft facility that was terminated in the
first quarter of fiscal 2009 and cash in an escrow account related to contingent
payments paid in the first quarter of fiscal 2009 to the sellers of R2D due to
the fulfillment of certain requirements.</FONT></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 customer acceptance. 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="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="91%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>June 30,</FONT></B></TD>
    <TD noWrap align=center width="1%"></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 noWrap align=left width="91%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>2009</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>2008</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="8%" colSpan=4><B><FONT face=serif size=1>(dollars in thousands)</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" 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>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>8,580</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>9,776</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%"><FONT face=serif size=2>Work-in-process</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>2,949</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>5,057</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" 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="3%" bgColor=#cceeff><FONT face=serif size=2>907</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="3%" bgColor=#cceeff><FONT face=serif size=2>1,069</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT face=serif size=2>12,436</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><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=center><FONT size=2>8</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><FONT face=serif size=2>The following is a summary of property,
plant and equipment: </FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"></TD>
    <TD noWrap align=center width="6%" colSpan=3><B><FONT face=serif size=2>June 30,</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="8%" colSpan=3><B><FONT face=serif size=2>September 30,</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%" colSpan=3><B><FONT face=serif size=2>2009</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="8%" colSpan=3><B><FONT face=serif size=2>2008</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"></TD>
    <TD noWrap align=center width="15%" colSpan=7><B><FONT face=serif size=1>(dollars in thousands)</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#cceeff><FONT face=serif size=2>Land, building and leasehold improvements</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>6,872</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="6%" bgColor=#cceeff><FONT face=serif size=2>6,916</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"><FONT face=serif size=2>Equipment and
      machinery</FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>4,214</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="6%"><FONT face=serif size=2>3,654</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#cceeff><FONT face=serif size=2>Furniture and fixtures</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#cceeff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>3,380</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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%" bgColor=#cceeff><FONT face=serif size=2>3,306</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>14,466</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="6%"><FONT face=serif size=2>13,876</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#cceeff><FONT face=serif size=2>Accumulated depreciation and amortization</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(6,045</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" 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 style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%" 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 face=serif size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT face=serif size=2>8,421</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="6%"><FONT face=serif size=2>8,409</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"></TD></TR></TABLE><BR>
<P align=justify><B><FONT face=serif size=2>Goodwill</FONT></B><FONT face=serif size=2> &#150; 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. Circumstances in the quarter ended March
31, 2009 required the Company to test long-lived assets for recoverability and
impairment. See Note 9, &#147;Impairment and Restructuring Charge&#148; for a description
of the facts and circumstances leading to the interim impairment test and the
amount and method of calculating the impairment charge. </FONT></P>
<P align=justify><FONT face=serif size=2>In October 2007, the Company acquired
the R2D Automation business (&#147;R2D&#148;), a solar cell and semiconductor automation
equipment manufacturing company located near Montpellier, France. Cash
contingent payments of approximately $1.6 million were deposited in an escrow
account with the agreement to pay the sellers upon fulfillment of certain
requirements. As of June 30, 2009, approximately $1.1 million of the $1.6
million has been paid to the sellers in recognition of fulfilling 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>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 indefinite, amortization is
not recorded.</FONT></P>
<P align=justify><FONT face=serif size=2>As required by SFAS No. 144,
&#147;Accounting for the Impairment or Disposal of Long-Lived Assets,&#148; long-lived
assets are reviewed for impairment when events or changes in circumstances
indicate that the carrying amount of an asset may not be recoverable.
Circumstances in the quarter ended March 31, 2009 required the Company to test
long-lived assets for recoverability and impairment. See Note 9, &#147;Impairment and
Restructuring Charge&#148; for a description of the facts and circumstances leading
to the interim impairment test and the amount and method of calculating the
impairment charge. </FONT></P>
<P align=justify><FONT face=serif size=2>In November 2008, 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) dry etch
systems for the manufacture of photovoltaic cells. 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, the Company
paid $0.5 million.</FONT></P>
<P align=justify><FONT face=serif size=2>On April 9, 2009, the Company entered
into amendments with PST to both the PSG license discussed above and the PECVD
license to expand the licenses to include one future model of the PSG dry etch
systems and three future models of the PECVD system. These amendments to the
licenses require the Company to pay additional license fees upon successful
achievement of the agreed upon specifications of each of the four new models.
The four payments range from three hundred million South Korean Won (KRW),
approximately $230,000, to one billion KRW, approximately $780,000, for maximum
total payments of approximately $1,420,000. Such payments will be recorded as
additional intangibles, the cost of which will be amortized over the life of the
license.</FONT></P>

<P align=center><FONT size=2>9</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<PAGE>
<P align=justify><FONT face=serif size=2>The following is a summary of
intangibles: </FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="80%"></TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>June 30,</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="7%" colSpan=3><B><FONT face=serif size=2>September 30,</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%"><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="5%" colSpan=3><B><FONT face=serif size=2>2009</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="7%" colSpan=3><B><FONT face=serif size=2>2008</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%"></TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=center width="13%" 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>Trademarks</FONT></TD>
    <TD noWrap align=center width="5%" 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>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>-</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>592</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%"><FONT face=serif size=2>Non-compete
      agreements</FONT></TD>
    <TD noWrap align=center width="5%"><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="3%"><FONT face=serif size=2>171</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>524</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%" bgColor=#cceeff><FONT face=serif size=2>Customer lists</FONT></TD>
    <TD noWrap align=center width="5%" 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="3%" bgColor=#cceeff><FONT face=serif size=2>905</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></TD>
    <TD noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>1,195</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%"><FONT face=serif size=2>Technology</FONT></TD>
    <TD noWrap align=center width="5%"><FONT face=serif size=2>4-10
      years</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>1,793</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="5%"><FONT face=serif size=2>1,924</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%" bgColor=#cceeff><FONT face=serif size=2>Licenses</FONT></TD>
    <TD noWrap align=center width="5%" 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="3%" bgColor=#cceeff><FONT face=serif size=2>1,500</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></TD>
    <TD noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>700</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%"><FONT face=serif size=2>Other</FONT></TD>
    <TD noWrap align=center width="5%"><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="3%"><FONT face=serif size=2>93</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></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="5%"><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="80%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>4,462</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="5%" bgColor=#cceeff><FONT face=serif size=2>5,029</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%"><FONT face=serif size=2>Accumulated
      amortization</FONT></TD>
    <TD noWrap align=left width="5%"></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="3%"><FONT face=serif size=2>(627</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="5%"><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="80%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,835</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      4,384</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>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 style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="84%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="15%" colSpan=7><B><FONT face=serif size=2>Nine Months Ended June 30,</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%"></TD>
    <TD noWrap align=center width="1%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="7%" colSpan=3><B><FONT face=serif size=2>2009</FONT></B></TD>
    <TD noWrap align=center width="1%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="7%" colSpan=3><B><FONT face=serif size=2>2008</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="15%" colSpan=7><B><FONT face=serif size=1>(dollars in thousands)</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#cceeff><FONT face=serif size=2>Beginning balance</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>1,155</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>256</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%"><FONT face=serif size=2>Warranty
      expenditures</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>(433</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%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>(441</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#cceeff><FONT face=serif size=2>Provision</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="5%" bgColor=#cceeff><FONT face=serif size=2>645</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>&nbsp;</TD>
    <TD noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>960</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%"><FONT face=serif size=2>Acquired through
      business acquisitions</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="5%"><FONT face=serif size=2>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&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="5%"><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="84%" bgColor=#cceeff><FONT face=serif size=2>Ending balance</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><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,367</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,022</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff>&nbsp;&nbsp; </TD></TR></TABLE><BR>
<P align=justify><FONT face=serif size=2><B>Stock-Based Compensation &#150;
</B></FONT><FONT face=serif size=2>The Company measures 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 benefits of tax
deductions in excess of recognized compensation cost are reported as cash flow
from financing activities rather than as cash flow from operating activities.
Our stock-based compensation plans are summarized in the table below:
</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="75%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%"><B><FONT face=serif size=2>Shares</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%"><B><FONT face=serif size=2>Shares</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%"><B><FONT face=serif size=2>Plan</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="75%"><B><FONT face=serif size=2>Name of Plan</FONT></B></TD>
    <TD noWrap align=center width="1%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%"><B><FONT face=serif size=2>Authorized</FONT></B></TD>
    <TD noWrap align=center width="1%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%"><B><FONT face=serif size=2>Available</FONT></B></TD>
    <TD noWrap align=center width="1%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%"><B><FONT face=serif size=2>Options Outstanding</FONT></B></TD>
    <TD noWrap align=center width="1%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%"><B><FONT face=serif size=2>Expiration</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%" bgColor=#cceeff><FONT face=serif size=2>2007 Employee Stock Incentive Plan</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>500,000</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>121,387</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>248,113</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=center width="5%" bgColor=#cceeff><FONT face=serif size=2>Apr. 2017</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%"><FONT face=serif size=2>1998 Employee
      Stock Option Plan</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>500,000</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>-</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>325,490</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=center width="5%"><FONT face=serif size=2>Jan.
    2008</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%" bgColor=#cceeff><FONT face=serif size=2>Non-Employee Directors Stock Option Plan</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>200,000</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>32,600</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>90,000</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=center width="5%" bgColor=#cceeff><FONT face=serif size=2>Jul. 2015</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=2>153,987</FONT></TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=2>663,603</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="5%">&nbsp; </TD></TR></TABLE>
<P align=center><FONT face=serif size=2>10 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><FONT face=serif size=2>Share-based compensation expense
reduced the Company&#146;s results of operations by the following amounts:
</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="68%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="15%" colSpan=7><B><FONT face=serif size=2>Three Months Ended June
    30,</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="15%" colSpan=7><B><FONT face=serif size=2>Nine Months Ended June
    30,</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="68%"></TD>
    <TD noWrap align=center width="1%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="7%" colSpan=3><B><FONT face=serif size=2>2009</FONT></B></TD>
    <TD noWrap align=center width="1%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="7%" colSpan=3><B><FONT face=serif size=2>2008</FONT></B></TD>
    <TD noWrap align=center width="1%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="7%" colSpan=3><B><FONT face=serif size=2>2009</FONT></B></TD>
    <TD noWrap align=center width="1%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="7%" colSpan=3><B><FONT face=serif size=2>2008</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="68%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="31%" colSpan=15><FONT face=serif size=1>(dollars in thousands, except per share amounts)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="68%" bgColor=#cceeff><FONT face=serif size=2>Effect on income (loss) before income taxes (1)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (165</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (125</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 face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (498</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (335</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="68%"><FONT face=serif size=2>Effect on net
      income (loss)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>(128</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>(98</FONT></TD>
    <TD 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%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>(391</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>(291</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top width="1%"><FONT size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD vAlign=top width="1%"><FONT face=serif size=2>(1)</FONT></TD>
    <TD vAlign=top width="1%"><FONT size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD vAlign=top width="97%">
      <P align=justify><FONT face=serif size=2>Stock option expense is included
      in selling, general and administrative
expenses.</FONT></P></TD></TR></TABLE>
<P align=justify><FONT face=serif size=2>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 2019. Options issued by the Company vest over 1 to 5 years.
</FONT></P>
<P align=justify><FONT face=serif size=2>Stock option transactions and the
options outstanding are summarized as follows: </FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="21%" colSpan=13><B><FONT face=serif size=2>Nine Months Ended June
    30,</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="10%" colSpan=6><B><FONT face=serif size=2>2009</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="10%" colSpan=6><B><FONT face=serif size=2>2008</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Weighted</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></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="79%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" 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%"></TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></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="79%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" 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%"></TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Exercise</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>Options</FONT></B></TD>
    <TD noWrap align=center width="1%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Price</FONT></B></TD>
    <TD noWrap align=center width="1%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>Options</FONT></B></TD>
    <TD noWrap align=center width="1%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Price</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#cceeff><FONT face=serif size=2>Outstanding at beginning of period</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>486,803</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>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.39</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>450,303</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>6.44</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"><FONT face=serif size=2>Granted</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>189,000</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>3.79</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>120,000</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; 13.65</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#cceeff><FONT face=serif size=2>Exercised</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" 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></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT 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=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(67,375</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></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>5.34</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"><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="3%"><FONT face=serif size=2>(12,200</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 noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>7.41</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="3%"><FONT face=serif size=2>(4,875</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 noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>6.35</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" 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="3%" bgColor=#cceeff><FONT face=serif size=2>663,603</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 noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>7.10</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;
      498,053</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>8.33</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"><FONT face=serif size=2>Exercisable at
      end of period</FONT></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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;319,877</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>7.27</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT face=serif size=2>263,171</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>6.51</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#cceeff><FONT face=serif size=2>Weighted average fair value of options</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff>&nbsp;</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=left width="3%" 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=left width="3%" 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="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" 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>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>2.27</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>8.01</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=left width="3%" bgColor=#cceeff>&nbsp;
</TD></TR></TABLE><BR>
<P align=justify><FONT face=serif size=2>The fair value of options was estimated
at the grant date 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="88%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="11%" colSpan=3><B><FONT face=serif size=2>Nine Months Ended June
    30,</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%"><B><FONT face=serif size=2>2009</FONT></B></TD>
    <TD noWrap align=center width="1%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%"><B><FONT face=serif size=2>2008</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#cceeff><FONT face=serif size=2>Risk free interest rate</FONT></TD>
    <TD noWrap align=center width="5%" bgColor=#cceeff><FONT face=serif size=2>1.86%</FONT></TD>
    <TD noWrap align=center width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=center width="5%" bgColor=#cceeff><FONT face=serif size=2>3.27%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%"><FONT face=serif size=2>Expected
      life</FONT></TD>
    <TD noWrap align=center width="5%"><FONT face=serif size=2>6
    years</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%"><FONT face=serif size=2>6
    years</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#cceeff><FONT face=serif size=2>Dividend rate</FONT></TD>
    <TD noWrap align=center width="5%" bgColor=#cceeff><FONT face=serif size=2>0%</FONT></TD>
    <TD noWrap align=center width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=center width="5%" bgColor=#cceeff><FONT face=serif size=2>0%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%"><FONT face=serif size=2>Volatility</FONT></TD>
    <TD noWrap align=center width="5%"><FONT face=serif size=2>66%</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%"><FONT face=serif size=2>62%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#cceeff><FONT face=serif size=2>Forfeiture rate</FONT></TD>
    <TD noWrap align=center width="5%" bgColor=#cceeff><FONT face=serif size=2>7%</FONT></TD>
    <TD noWrap align=center width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=center width="5%" 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. 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=center><FONT face=serif size=2>11 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><FONT face=serif size=2>There were 6,000 and 189,000 options
granted during the three and nine months ended June 30, 2009, respectively; and
15,000 and 120,000 options granted for the comparable periods of fiscal 2008.
Total fair value of options granted was approximately $18,000 and $429,000 for
the three and nine months ended June 30, 2009, respectively; and $98,000 and
$961,000 for the comparable periods of fiscal 2008. </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
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>

<P align=justify><FONT face=serif size=2>Restricted stock transactions and
outstanding are summarized as follows: </FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="86%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="14%" colSpan=10><B><FONT face=serif size=2>Nine Months Ended June
    30,</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="9%" colSpan=5><B><FONT face=serif size=2>2009</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=4><B><FONT face=serif size=2>2008</FONT></B></TD></TR>
  <TR>
    <TD width="100%" colSpan=11></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%"></TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Weighted</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="2%" colSpan=2><B><FONT face=serif size=2>Weighted</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%"></TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" 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%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="2%" colSpan=2><B><FONT face=serif size=2>Average</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%"></TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></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="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="2%" colSpan=2><B><FONT face=serif size=2>Grant Date</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%"></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 style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&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="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%"><B><FONT face=serif size=2>Awards</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="2%" colSpan=2><B><FONT face=serif size=2>Fair Value</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%" bgColor=#cceeff><FONT face=serif size=2>Beginning Outstanding</FONT></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="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>14.79</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff><FONT size=2>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT size=2>$</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff><FONT face=serif size=2>-</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%"><FONT face=serif size=2>Awarded</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>100,000</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>3.80</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>31,500</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>14.79</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%" bgColor=#cceeff><FONT face=serif size=2>Released</FONT></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></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; 14.79</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff><FONT 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=right width="1%" bgColor=#cceeff><FONT size=2>-</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%"><FONT face=serif size=2>Forfeited</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><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 noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT size=2>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT size=2>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT size=2>-</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%" bgColor=#cceeff><FONT face=serif size=2>Ending Outstanding</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;
      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="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>5.85</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;
      31,500</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.79</FONT></TD></TR></TABLE><BR>
<P align=justify><B><FONT face=serif size=2>Fair Value of Financial Instruments
</FONT></B><FONT face=serif size=2>&#150; The carrying values of the Company&#146;s
current financial instruments approximate fair value due to the short term in
which these instruments mature. The carrying values of the Company&#146;s long-term
debt approximate fair value because their variable interest rates approximate
the prevailing interest rates for similar debt instruments.</FONT><FONT face=serif size=2> </FONT></P>
<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. The Company has not yet determined the impact, if any, that
SFAS No. 157 will have on its consolidated financial statements. SFAS No. 157 is
effective for the Company&#146;s fiscal year beginning October 1, 2009. </FONT></P>
<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,
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 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 of the Company for which the acquisition date is on or
after October 1, 2009. While the Company has not yet evaluated this statement
for 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=center><FONT face=serif size=2>12 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><B><FONT face=serif size=2>2. Income Taxes </FONT></B></P>
<P align=justify><FONT face=serif size=2>The income tax provision (benefit)
included in the condensed consolidated statements of operations for the nine
months ended June 30, 2009 and June 30, 2008 is based on the estimated annual
effective tax rate for the entire year and changes in the valuation allowance on
deferred tax assets in existence at the beginning of the fiscal year. These
estimated annual effective tax rates are adjusted at the end of each interim
quarter based on our estimates for the fiscal year of pretax income or loss,
permanent differences, statutory tax rates and changes in those deferred tax
assets for which we have established a valuation allowance, and tax planning
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
</FONT><FONT face=serif size=2>assets and liabilities for financial reporting
purposes and the amounts used for income tax purposes. Statement of Financial
Accounting Standards (&#147;SFAS&#148;) No. 109 &#147;Accounting for Income Taxes&#148; requires a
valuation allowance to be 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. Our expectations regarding realization of our
deferred tax assets is based upon the weight of all available evidence,
including such factors as our recent earnings history and expected future
taxable income. The Company maintains a valuation allowance with respect to
certain state deferred tax assets and foreign net operating losses that may not
be recovered. Each quarter the valuation allowance is re-evaluated. During the
nine months ended June 30, 2009, the valuation allowance was increased by
approximately $304,000 for certain state deferred tax assets, including $141,000
for net operating losses in those states, that may not be recovered. </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 June 30, 2009 and September 30,
2008, the total amount of unrecognized tax benefits was $500,000 and $440,000,
respectively. 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. The accrual for potential interest and penalties for the nine months
ended June 30, 2009 and June 30, 2008 was $64,000 and $36,000,
respectively.</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 foreign taxing 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 (loss) 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. In the case of a net loss, diluted earnings per share is
calculated in the same manner as basic EPS. </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 and nine months ended
June 30, 2009, options for 665,000 and 666,000 shares, respectively, and 23,000
restricted stock award shares are excluded from the diluted EPS calculations
because they are anti-dilutive. For the three and nine months ended June 30,
2008, options for 130,000 shares are excluded from the diluted EPS calculations
because they are anti-dilutive. For the three and nine months ended June 30,
2008, 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>13 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE><BR>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"></TD>
    <TD noWrap align=center width="13%" colSpan=6><B><FONT face=serif size=2>Three Months Ended</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="13%" colSpan=6><B><FONT face=serif size=2>Nine Months Ended</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="13%" colSpan=6><B><FONT face=serif size=2>June 30,</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="13%" colSpan=6><B><FONT face=serif size=2>June 30,</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%" colSpan=3><B><FONT face=serif size=2>2009</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="6%" 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="6%" colSpan=3><B><FONT face=serif size=2>2009</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="6%" colSpan=2><B><FONT face=serif size=2>2008</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"></TD>
    <TD noWrap align=center width="13%" colSpan=6><B><FONT face=serif size=1>(in thousands, except per share amounts)</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="13%" colSpan=6><B><FONT face=serif size=1>(in thousands, except per share amounts)</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#cceeff><B><U><FONT face=serif size=2>Basic Earnings Per Share Computation</FONT></U></B></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="4%" bgColor=#cceeff></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></TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="4%" bgColor=#cceeff></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></TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT face=serif size=2>Net income
      (loss) available to</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="4%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="4%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="5%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; common stockholders</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%"><FONT face=serif size=2>(235</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="5%"><FONT face=serif size=2>1,160</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>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%"><FONT face=serif size=2>(1,388</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="5%"><FONT face=serif size=2>1,429</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=14>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#cceeff><FONT face=serif size=2>Weighted Average Shares Outstanding:</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="4%" bgColor=#cceeff></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></TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="4%" bgColor=#cceeff></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></TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock</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="4%" bgColor=#cceeff><FONT face=serif size=2>8,960</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>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>9,081</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="4%" bgColor=#cceeff><FONT face=serif size=2>9,038</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>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>8,593</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=14>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#cceeff><FONT face=serif size=2>Basic earnings (loss) per share</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>(0.03</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>0.13</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>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>(0.15</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>0.17</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=14>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#cceeff><B><U><FONT face=serif size=2>Diluted Earnings Per Share Computation</FONT></U></B></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="4%" bgColor=#cceeff></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></TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="4%" bgColor=#cceeff></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></TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#ffffff><FONT face=serif size=2>Net income (loss)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#ffffff><FONT face=serif size=2>(235</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="5%" bgColor=#ffffff><FONT face=serif size=2>1,160</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#ffffff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1,388</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="5%" bgColor=#ffffff><FONT face=serif size=2>1,429</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=14>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#cceeff><FONT face=serif size=2>Weighted Average Shares Outstanding:</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="4%" bgColor=#cceeff></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></TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="4%" bgColor=#cceeff></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></TD>
    <TD noWrap align=left width="5%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>8,960</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="5%"><FONT face=serif size=2>9,081</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>9,038</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>8,593</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock equivalents
      (1)</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="4%" bgColor=#cceeff><FONT face=serif size=2>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</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="5%" bgColor=#cceeff><FONT face=serif size=2>116</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="4%" bgColor=#cceeff><FONT face=serif size=2>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</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="5%" bgColor=#cceeff><FONT face=serif size=2>139</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted shares</FONT></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="4%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      8,960</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%">&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="5%"><FONT face=serif size=2>9,197</FONT></TD>
    <TD noWrap align=left width="1%"></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="4%"><FONT face=serif size=2>9,038</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></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="5%"><FONT face=serif size=2>8,732</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=14>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#cceeff><FONT face=serif size=2>Diluted earnings (loss) per share</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>(0.03</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>0.13</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>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>(0.15</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="5%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
0.16</FONT></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD vAlign=top><FONT face=serif size=2>(1)</FONT></TD>
    <TD vAlign=top>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD vAlign=top 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 (Loss)
</FONT></B></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"></TD>
    <TD noWrap align=center width="10%" colSpan=6><B><FONT face=serif size=2>Three Months Ended</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="10%" colSpan=6><B><FONT face=serif size=2>Nine Months Ended</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="10%" colSpan=6><B><FONT face=serif size=2>June 30,</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="10%" colSpan=6><B><FONT face=serif size=2>June 30,</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>2009</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>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="5%" colSpan=3><B><FONT face=serif size=2>2009</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>2008</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"></TD>
    <TD noWrap align=center width="10%" colSpan=6><B><FONT face=serif size=1>(dollars in thousands)</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="10%" colSpan=6><B><FONT face=serif size=1>(dollars in thousands)</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#cceeff><FONT face=serif size=2>Net income (loss), as reported</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(235</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>1,160</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(1,388</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>1,429</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=serif size=2>Foreign currency
      translation adjustment</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="3%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;
2,005</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="3%"><FONT face=serif size=2>32</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="3%"><FONT face=serif size=2>(723</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="3%"><FONT face=serif size=2>1,531</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#cceeff><FONT face=serif size=2>Comprehensive income (loss)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>1,770</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;
      1,192</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>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;
      (2,111</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;
      2,960</FONT></TD></TR></TABLE>
<P align=center><FONT face=serif size=2>14 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<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
small portion 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>Information concerning our business
segments is as follows:</FONT><FONT face=serif> </FONT></P>
<TABLE style="LINE-HEIGHT: 13pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"></TD>
    <TD noWrap align=center width="10%" colSpan=6><B><FONT face=serif size=2>Three Months Ended</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="10%" colSpan=6><B><FONT face=serif size=2>Nine Months Ended</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="10%" colSpan=6><B><FONT face=serif size=2>June 30,</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="10%" colSpan=6><B><FONT face=serif size=2>June 30,</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>2009</FONT></B></TD>
    <TD noWrap align=center width="1%">&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; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>2009</FONT></B></TD>
    <TD noWrap align=center width="1%">&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></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#ffffff></TD>
    <TD noWrap align=center width="10%" bgColor=#ffffff colSpan=6><B><FONT face=serif size=1>(dollars in thousands)</FONT></B></TD>
    <TD noWrap align=center width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=center width="10%" bgColor=#ffffff colSpan=6><B><FONT face=serif size=1>(dollars in thousands)</FONT></B></TD></TR>
  <TR>
    <TD noWrap align=left width="78%" bgColor=#cceeff><FONT size=2>Net Revenues:</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff></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></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face=serif>Solar and
      semiconductor equipment</FONT></FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>11,458</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>22,138</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>36,931</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>47,743</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#cceeff><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face=serif>Polishing
      supplies</FONT></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="3%" bgColor=#cceeff><FONT face=serif size=2>1,070</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</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="3%" bgColor=#cceeff><FONT face=serif size=2>2,009</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="3%" bgColor=#cceeff><FONT face=serif size=2>4,373</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</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="3%" bgColor=#cceeff><FONT face=serif size=2>5,736</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12,528</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24,147</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>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT face=serif size=2>41,304</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;53,479</FONT></TD></TR>
  <TR>
    <TD width="99%" colSpan=14>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#cceeff><FONT face=serif size=2>Operating income (loss):</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></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></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></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></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face=serif>Solar and
      semiconductor equipment (1)</FONT></FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(300</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>1,421</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,430</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>911</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#cceeff><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face=serif>Polishing
      supplies</FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(2</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif 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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>256</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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(72</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif 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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>709</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(302</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%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>1,677</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(1,502</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%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>1,620</FONT></TD></TR>
  <TR>
    <TD width="99%" colSpan=14>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#cceeff><FONT face=serif size=2>Interest and other income (expense), net</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(33</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></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>248</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="3%" bgColor=#cceeff><FONT face=serif size=2>14</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></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>749</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="78%">&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%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&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="3%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&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="3%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#cceeff><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face=serif>Income (loss)
      before income taxes</FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(335</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>1,925</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>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(1,488</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>2,369</FONT></TD></TR></TABLE><BR>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top width="1%"><FONT size=2>(1)</FONT></TD>
    <TD vAlign=top width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD vAlign=top width="97%">
      <P align=justify><FONT face=serif size=2>The nine months ended June 30,
      2009 includes the impairment losses of $1.1 million related to intangible
      assets and goodwill and $0.6 million of restructuring costs at Bruce
      Technologies. See Note 9, "Impairment and Restructuring Charge." The three
      and nine months ended June 30, 2008 include restructuring costs of $0.3
      million at Bruce Technologies.</FONT></P></TD></TR></TABLE><BR>
<TABLE style="LINE-HEIGHT: 13pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="88%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>June 30,</FONT></B></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>September 30,</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>2009</FONT></B></TD>
    <TD noWrap align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><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></FONT></TD>
    <TD noWrap align=center width="12%" colSpan=5><B><FONT face=serif size=1>(dollars in thousands)</FONT></B></TD></TR>
  <TR>
    <TD noWrap align=left width="88%" bgColor=#cceeff><FONT size=2>Identifiable Assets:</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif size=2>Solar and semiconductor equipment</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#ffffff><FONT face=serif size=2>85,359</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#ffffff><FONT face=serif size=2>97,545</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#cceeff><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;</FONT> Polishing
      supplies</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="4%" bgColor=#cceeff><FONT face=serif size=2>4,433</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="4%" bgColor=#cceeff><FONT face=serif size=2>4,810</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#ffffff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;
      89,792</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#ffffff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;
      102,355</FONT></TD></TR></TABLE>
<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 months ended June 30,
2009, three customers represented 30%, 17% and 15% of net revenues,
individually. During the nine months ended June 30, 2009, one customer
represented 19% of net revenues. During the three months ended June 30, 2008,
two customers represented 34% and 11% of net revenues, individually. During the
nine months ended June 30, 2008, two customers represented 25% and 10% of net
revenues, individually. </FONT></P>
<P align=center><FONT face=serif size=2>15 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><FONT face=serif size=2>Our net revenues were to customers in
the following geographic regions: </FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="90%"></TD>
    <TD noWrap align=center width="9%" colSpan=5><B><FONT face=serif size=2>Nine Months Ended June 30,</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>2009</FONT></B></TD>
    <TD noWrap align=center width="1%">&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></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%" bgColor=#cceeff><FONT face=serif size=2>United States</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>20</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>%</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>16</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="90%"><FONT face=serif size=2>Other</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>0</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>%</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>1</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="90%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2> <B><FONT face=serif>Total North America</FONT></B></FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><B><FONT face=serif size=2>20</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><B><FONT face=serif size=2>%</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><B><FONT face=serif size=2>17</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><B><FONT face=serif size=2>%</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%"><FONT face=serif size=2>China</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>32</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>%</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>39</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%" bgColor=#cceeff><FONT face=serif size=2>Taiwan</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>27</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>%</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>15</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="90%"><FONT face=serif size=2>Other</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>5</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>%</FONT></TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>9</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="90%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2> <B><FONT face=serif>Total Asia</FONT></B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#cceeff><B><FONT face=serif size=2>64</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff><B><FONT face=serif size=2>%</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#cceeff><B><FONT face=serif size=2>63</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff><B><FONT face=serif size=2>%</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%">&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2>
      <B><FONT face=serif>Total Europe</FONT></B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>16</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><FONT face=serif size=2>%</FONT></B></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>20</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><FONT face=serif size=2>%</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><B><FONT face=serif size=2>100</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><B><FONT face=serif size=2>%</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><B><FONT face=serif size=2>100</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><B><FONT face=serif size=2>%</FONT></B></TD></TR></TABLE><BR>
<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 June 30, 2009, we had purchase obligations in the
amount of $4.8 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=justify><B><FONT face=serif size=2>License Fees &#150;</FONT></B><FONT face=sans-serif size=2></FONT><FONT face=serif size=2>The license fees resulting
from the amendments to the license agreements discussed in Note 1 are expected
to be paid in 2010 ($0.6 million) and 2011 ($0.8 million).</FONT><B><FONT face=serif size=2> </FONT></B></P>
<P align=justify><B><FONT face=serif size=2>Litigation </FONT></B><FONT face=serif>&#150;</FONT><FONT face=serif size=2> The Company is a party to various
claims arising in the normal course of business. Management believes the
resolution of these matters will not have a material impact on the Company&#146;s
results of operations or financial condition.</FONT><FONT face=sans-serif size=2> </FONT></P>
<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 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
2008, 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. During the nine months ended June 30, 2009, the Company
repurchased 144,000 shares for $0.4 million in cash at an average cost of $3.09
per share. During the three months ended June 30, 2009 there were no
repurchases. The repurchased shares were retired immediately after the
repurchases were complete. Retirement of the repurchased shares is recorded as a
reduction of common stock and additional paid-in-capital. </FONT></P>
<P align=center><FONT face=serif size=2>16 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><B><FONT face=serif size=2>9. Impairment and Restructuring
Charge</FONT></B><FONT face=serif size=2> </FONT></P>
<P align=justify><FONT face=serif size=2>The Bruce operations are primarily
dependent upon a mature segment of the semiconductor industry which is
experiencing a significant downturn. The industry downturn resulted in recent
operating losses and deterioration in forecasted revenue and earnings at Bruce.
It is uncertain when, and to what extent, the markets served by Bruce will
recover. Therefore, the Bruce operations were restructured in the second quarter
of fiscal 2009 to focus primarily on a parts supply business instead of its
prior focus, the sale of furnace systems. The restructuring included a reduction
in the number of employees and a reduction in the amount of space required to
operate the business. The restructuring resulted in a charge of $620,000, which
includes a $350,000 charge for unutilized leased space, a $160,000 write-off of
furnace-related inventory parts that are not expected to be utilized in the
future and $110,000 of severance and outplacement costs. </FONT></P>
<P align=justify><FONT face=serif size=2>Due to the circumstances related to the
Bruce operations discussed above, the Company determined it was necessary to
conduct an assessment of the ability to recover the carrying amount of
long-lived assets of the Bruce operations. Recoverability is based upon the
Company&#146;s judgments and estimates of undiscounted cash flows during the
estimated remaining useful life of the assets. It was determined that the
carrying value of the net assets subject to amortization or depreciation was not
fully recoverable; therefore, an impairment charge of $373,000 was recorded for
the excess of carrying value over the fair value of the customer list and
non-compete agreement. </FONT></P>
<P align=justify><FONT face=serif size=2>As a result of the impairment of
long-lived assets described above, it was necessary to conduct an interim review
of the goodwill and Bruce trademark for impairment. The fair value of the assets
group was determined through estimates of the present value of future cash flows
based upon the anticipated future use of the assets. As the </FONT><FONT face=serif size=2>carrying value of the Bruce assets exceeded their estimated
fair value, the carrying values of goodwill ($89,000) and the Bruce trademark
($592,000) were also recorded as an impairment charge in the second quarter of
fiscal 2009. </FONT></P>
<P align=justify><FONT face=serif size=2>The total amount of the impairment
charge was $1.1 million. Details of the impairment charge are as follows:
</FONT></P>
<P align=justify>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="80%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>Gross</FONT></B></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%"></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>Net</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>Carrying</FONT></B></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>Accumulated</FONT></B></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>Carrying</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>Amount</FONT></B></TD>
    <TD noWrap align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>Amortization</FONT></B></TD>
    <TD noWrap align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>Amount</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"></TD>
    <TD noWrap align=center width="19%" colSpan=8><B><FONT face=serif size=1>(dollars in thousands)</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#cceeff><FONT face=serif size=2>Goodwill</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>89</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>-</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></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>89</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"><FONT face=serif size=2>Trademark</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>592</FONT></TD>
    <TD noWrap align=left width="2%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>-</FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>592</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#cceeff><FONT face=serif size=2>Customer list</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>276</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>87</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>189</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"><FONT face=serif size=2>Non-compete
      agreement</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; 350</FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; 166</FONT></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="4%"><FONT face=serif size=2>184</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#cceeff>&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif size=2>Impairment Charge</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="4%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="4%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="2%" 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="4%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;
      1,054</FONT></TD></TR></TABLE>
<P align=center><FONT face=serif size=2>17 </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. </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;goal,&#148; &#147;predicts,&#148;
&#147;projects,&#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,
technological changes and our dependence on our technology partners for the
delivery and confirmation of the technological advantage of new products;
development of superior technologies by our competitors;&nbsp;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 solar and semiconductor 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 style="FONT-SIZE: 10pt; TEXT-ALIGN: justify">
  <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 size=2>18 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>




<PAGE>

<P align=justify><B><FONT face=serif size=2>Overview</FONT></B></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></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 manufactures polishing templates, steel
carriers and double-sided polishing and lapping machines for fabricators of
optics, quartz, ceramics and metal parts, and for 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, our revenues, gross margins and operating
results have historically fluctuated on a quarterly basis. Our contracts
typically include holdbacks of 10-20% of revenue, which are recognized at the
time of customer acceptance.</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 style="FONT-SIZE: 12pt; LINE-HEIGHT: 13pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="11%" colSpan=5><B><FONT face=serif size=2>Three Months Ended</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="11%" colSpan=5><B><FONT face=serif size=2>Nine Months Ended</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>June 30,</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>June 30,</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>June 30,</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>June 30,</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>2009</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="5%" 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="5%" colSpan=2><B><FONT face=serif size=2>2009</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="5%" colSpan=2><B><FONT face=serif size=2>2008</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#cceeff><FONT face=serif size=2>Net revenue</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
100</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>%</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
100</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>%</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
100</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>%</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
100</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="76%"><FONT face=serif size=2>Cost of goods
      sold</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=2>71</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>%</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=2>71</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>%</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=2>71</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>%</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=2>72</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="76%" bgColor=#cceeff><FONT face=serif size=2>Gross margin</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>29</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>%</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>29</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>%</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>29</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>%</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" 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></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT face=serif size=2>Operating
      expenses:</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="4%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="4%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="4%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="4%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Selling, general and
      administrative</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>30</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>%</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>20</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>%</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>28</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>%</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>23</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="76%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Restructuring
      Charge</FONT></FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>0</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>%</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>1</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>%</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>4</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>%</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>1</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#cceeff><FONT size=2><FONT face=serif>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Research and
      Development</FONT></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>1</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>%</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>1</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>%</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>1</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>%</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>1</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT face=serif size=2>Total operating
      expenses</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=2>31</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>%</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=2>22</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>%</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=2>33</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>%</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=2>25</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="76%" bgColor=#cceeff><FONT face=serif size=2>Income from operations</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>(2</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>%)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>7</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>%</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>(4</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>%)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>3</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="76%"><FONT face=serif size=2>Interest and
      other income (expense), net</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=2>(1</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>%)</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=2>1</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>%</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=2>0</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>%</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=2>2</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="76%" bgColor=#cceeff><FONT face=serif size=2>Income before income taxes</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>(3</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>%)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>8</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>%</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>(4</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>%)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>5</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="76%"><FONT face=serif size=2>Income
      taxes</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=2>(1</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>%)</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=2>3</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>%</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=2>(1</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>%)</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=2>3</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="76%" bgColor=#cceeff><FONT face=serif size=2>Net Income</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>(2</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>%)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>5</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>%</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>(3</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>%)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>2</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>%</FONT></TD></TR></TABLE><BR>
<P align=justify><B><I><FONT face=serif size=2>Net Revenue</FONT></I></B></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 system 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>19</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>

<TABLE style="FONT-SIZE: 12pt; LINE-HEIGHT: 13pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="54%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="22%" colSpan=12><B><FONT face=serif size=2>Three Months Ended</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="22%" colSpan=12><B><FONT face=serif size=2>Nine Months Ended</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="54%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>June 30,</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>June 30,</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>Inc.</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>June 30,</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>June 30,</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>Inc.</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="54%"></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>2009</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>2008</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>(Dec)</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2><STRONG>%</STRONG></FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>2009</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>2008</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>(Dec)</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2><STRONG>%</STRONG></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="54%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="17%" colSpan=9><B><FONT face=serif size=1>(dollars in thousands)</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="17%" colSpan=9><B><FONT face=serif size=1>(dollars in thousands)</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;</TD>
    <TD noWrap align=center width="3%">&nbsp;</TD>
    <TD noWrap align=center width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="54%" bgColor=#cceeff><FONT face=serif size=2>Solar and Semiconductor</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="4%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="4%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></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></TD>
    <TD noWrap align=left width="4%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="4%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="54%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equipment Segment</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp; 11,458</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp; 22,138</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp; (10,680</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; (48</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>%)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp; 36,931</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp; 47,743</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp; (10,812</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; (23</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="54%"><FONT face=serif size=2>Polishing
      Supplies Segment</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=2>1,070</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=2>2,009</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="3%"><FONT face=serif size=2>(939</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(47</FONT></TD>
    <TD 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="4%"><FONT face=serif size=2>4,373</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=2>5,736</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>(1,363</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(24</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>%)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="54%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Net Revenue</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><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>12,528</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>24,147</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><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(11,619</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #cceeff 2pt solid" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(48</FONT></TD>
    <TD style="BORDER-BOTTOM: #cceeff 2pt solid" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>%)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>41,304</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><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>53,479</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(12,175</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #cceeff 2pt solid" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(23</FONT></TD>
    <TD style="BORDER-BOTTOM: #cceeff 2pt solid" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>%)</FONT></TD></TR></TABLE><BR>
<P align=justify><FONT face=serif size=2>Net revenue for the quarter ended June
30, 2009 decreased $11.6 million, or 48%, compared to the quarter ended June 30,
2008. Revenue from the Solar and Semiconductor Equipment Segment decreased $10.7
million, or 48%, due to significantly lower shipments to the solar industry,
partially offset by an increase in recognition of previously deferred revenue.
The decrease in net revenue from the solar industry was driven by the global
economic downturn and credit crisis resulting in delays in many of our
customers&#146; capacity expansion plans. The decrease of $0.9 million, or 47%, in
net revenue from the Polishing Supplies Segment was due to lower sales volume of
polishing machines, insert carriers and templates caused mainly by the downturn
in the semiconductor industry.</FONT></P>
<P align=justify><FONT face=serif size=2>Net revenue for the nine months ended
June 30, 2009 decreased by $12.2 million, or 23%, compared to the nine months
ended June 30, 2008. Revenue from the Solar and Semiconductor Equipment Segment
decreased $10.8 million, or 23%, due to the economic downturn as described
above. The decrease of $1.4 million, or 24%, in net revenue from the Polishing
Supplies Segment is also due to the economic downturn as described
above.</FONT></P>
<P align=justify><FONT face=serif size=2>The ongoing 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 or
cancellations in the shipment of their orders. A continuation of the global
credit crisis and related downturn in the global economy are likely to
negatively impact future revenues from both solar and semiconductor markets and
could have a significant adverse affect on our results of operations and
financial condition.</FONT></P>
<P align=justify><B><I><FONT face=serif size=2>Backlog and
Orders</FONT></I></B></P>
<P align=justify><FONT face=serif size=2>Our order backlog as of June 30, 2009
and 2008 was $29.7 million and $60.1 million, respectively. Our backlog as of
June 30, 2009 includes approximately $27.1 million of orders from our solar
industry customers compared to $44.2 million at June 30, 2008. New orders booked
in the quarter ended June 30, 2009 were $5.3 million compared to $20.2 million
in the third quarter of fiscal 2008. New orders booked in the nine-month periods
ended June 30, 2009 and 2008 were $22.1 million and $83.8 million, respectively.
As the majority of the backlog is denominated in euros, the strengthening of the
dollar during the first three quarters of fiscal 2009 resulted in a reduction in
backlog of approximately $2.0 million. The decrease in new orders and backlog is
due primarily to the ongoing global credit crisis and related economic downturn.
This has caused many of our customers to delay or suspend their capacity
expansion plans. Total bookings are expected to remain noticeably lower than
prior year quarters at least until the lingering global economic downturn
improves.</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 June 30, 2009
includes $1.2 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><FONT face=serif size=2>As of June 30, 2009, two customer&#146;s
individually account for 44% and 42% of our order backlog, respectively. The
customer representing 44% of the order backlog has delayed shipment for some of
its orders beginning in the second quarter of the current fiscal year. Further
delays by this customer of the shipment of a significant portion of these orders
past December 31, 2009 could have a significant adverse effect on the results of
operations during fiscal 2010.</FONT></P>
<P align=justify><B><I><FONT face=serif size=2>Gross Profit and Gross
Margin</FONT></I></B></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>
<DIV align=center><FONT face=serif size=2>20</FONT></DIV>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>

<TABLE style="FONT-SIZE: 12pt; LINE-HEIGHT: 13pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="54%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="22%" colSpan=14><B><FONT face=serif size=2>Three Months Ended</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="22%" colSpan=14><B><FONT face=serif size=2>Nine Months Ended</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="54%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>June 30,</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>June 30,</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>Inc.</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>June 30,</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>June 30,</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>Inc.</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="54%"></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>2009</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&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="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>(Dec)</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2><STRONG>%</STRONG></FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>2009</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&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="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>(Dec)</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2><STRONG>%</STRONG></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="54%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="17%" colSpan=11><B><FONT face=serif size=1>(dollars in thousands)</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;</TD>
    <TD noWrap align=center width="3%">&nbsp;</TD>
    <TD noWrap align=center width="1%">&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="17%" colSpan=11><B><FONT face=serif size=1>(dollars in thousands)</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;</TD>
    <TD noWrap align=center width="3%">&nbsp;</TD>
    <TD noWrap align=center width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="54%" bgColor=#cceeff><FONT face=serif size=2>Solar and Semiconductor</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="3%" bgColor=#cceeff></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></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></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></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></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></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></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></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></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></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="54%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equipment Segment</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp; 3,283</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp; 6,457</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>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp; (3,174</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; (49</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>%)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp; 11,127</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>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp; 12,971</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp; (1,844</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; (14</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="54%"><FONT face=serif size=2>Polishing
      Supplies Segment</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>299</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&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="3%"><FONT face=serif size=2>621</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>(322</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(52</FONT></TD>
    <TD 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%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>898</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>1,794</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%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>(896</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(50</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>%)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="54%" bgColor=#cceeff><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Total Gross
      Profit</FONT></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><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>3,582</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>7,078</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>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(3,496</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(49</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>%)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>12,025</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>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>14,765</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(2,740</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(19</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="54%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Gross
      margin</FONT></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>29</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%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>29</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%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>29</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%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>28</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%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR></TABLE><BR>
<P align=justify><FONT face=serif size=2>Gross profit for the quarter ended June
30, 2009 decreased $3.5 million or 49% from $7.1 million in the third quarter of
fiscal 2008 to $3.6 million in the third quarter of fiscal 2009. Consolidated
gross margin and that of the Solar and Semiconductor Segment in the quarters
ended June 30, 2009 and 2008 was 29%. We recognized $0.6 million of previously
deferred profit for the quarter ended June 30, 2009, net of deferrals, compared
to a net deferral of $1.8 million of profit for the quarter ended June 30, 2008.
Excluding the impact of the change in deferred revenue and profit, gross margin
in the Solar and Semiconductor Equipment Segment decreased to 25% in the third
quarter of fiscal 2009 versus 34% in the third quarter of fiscal 2008, due
primarily to lower production and shipment volumes and the related reduction in
efficiencies and plant utilization. Gross profit and margins in the Polishing
Supplies Segment decreased due to lower volumes of polishing machines, carriers
and templates.</FONT></P>
<P align=justify><FONT face=serif size=2>Gross profit for the nine months ended
June 30, 2009 decreased $2.7 million or 19% to $12.0 million in the first nine
months of fiscal 2009 from $14.8 million in the first nine months of fiscal
2008. Gross margin increased to 29% in the first nine months of fiscal 2009 from
28% in the first nine months of fiscal 2008. We recognized $0.3 million of
previously deferred profit for the nine months ended June 30, 2009, net of
deferrals, compared to a net deferral of $1.6 million of profit for the nine
months ended June 30, 2008. Excluding the impact of deferred revenue and profit
activity, gross margin in the Solar and Semiconductor Equipment Segment
decreased to 28% in the first nine months of fiscal 2009 from 30% in the first
nine months of fiscal 2008 due primarily to lower efficiencies and plant
utilization experienced in the second and third quarters of fiscal 2009 In the
first nine months of fiscal 2009, we deferred revenue included $1.1 million with
an equal amount of deferred cost.</FONT></P>
<P align=justify><FONT face=serif size=2>Gross profit and gross margin in the
fourth quarter of fiscal 2009 will be significantly influenced by the amount of
deferred profit recognized during the period. The remaining amount of deferred
profit is expected to decline significantly during the fourth quarter of this
fiscal year, which combined with the potential for lower shipments associated
with the decline in new order bookings could materially and adversely affect
gross profit and gross margins in 2010.</FONT></P>
<P align=justify><B><I><FONT face=serif size=2>Selling, General and
Administrative</FONT></I></B></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>
<TABLE style="FONT-SIZE: 12pt; LINE-HEIGHT: 13pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="54%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="22%" colSpan=14><B><FONT face=serif size=2>Three Months Ended</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="22%" colSpan=14><B><FONT face=serif size=2>Nine Months Ended</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="54%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>June 30,</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>June 30,</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>Inc.</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>June 30,</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>June 30,</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>Inc.</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="54%"></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>2009</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&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="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>(Dec)</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2><STRONG>%</STRONG></FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>2009</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&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="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>(Dec)</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2><STRONG>%</STRONG></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="54%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="17%" colSpan=11><B><FONT face=serif size=1>(dollars in thousands)</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;</TD>
    <TD noWrap align=center width="3%">&nbsp;</TD>
    <TD noWrap align=center width="1%">&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="17%" colSpan=11><B><FONT face=serif size=1>(dollars in thousands)</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;</TD>
    <TD noWrap align=center width="3%">&nbsp;</TD>
    <TD noWrap align=center width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="54%" bgColor=#cceeff><FONT face=serif size=2>Solar and Semiconductor</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="3%" bgColor=#cceeff></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></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></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></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></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></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></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></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></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></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="54%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equipment Segment</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>3,432</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>4,482</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>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(1,050</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(23</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>%)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>10,348</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>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>11,030</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(682</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(6</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="54%"><FONT face=serif size=2>Polishing
      Supplies Segment</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="3%"><FONT face=serif size=2>301</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>365</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>(64</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; (18</FONT></TD>
    <TD 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%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>970</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&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="3%"><FONT face=serif size=2>1,085</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="3%"><FONT face=serif size=2>(115</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; (11</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>%)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="54%" bgColor=#cceeff><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Total
      SG&amp;A</FONT></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><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp; 3,733</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp; 4,847</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>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;(1,114</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(23</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>%)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp; 11,318</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>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp; 12,115</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>&nbsp; &nbsp;&nbsp; (797</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(7</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="54%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Percent of
      net revenue</FONT></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>30</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%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>20</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%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>28</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%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>23</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%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR></TABLE><BR>
<P align=justify><FONT face=serif size=2>Selling, general and administrative
(SG&amp;A) expenses for the three months ended June 30, 2009 decreased $1.1
million, or 23%, to $3.7 million from $4.8 million for the three months ended
June 30, 2008. SG&amp;A expenses include $0.2 million and $0.1 million of
stock-based compensation expense in the three months ended June 30, 2009 and
2008, respectively. The decrease in SG&amp;A expenses was due primarily to a
$0.7 million of decrease in selling expense, primarily commissions, related to
lower revenues generated in regions where third party sales agents are utilized.
General and administrative expenses decreased $0.4 million due primarily to
lower accruals for incentive compensation, offset by the increases in
stock-based compensation expense.</FONT></P>
<DIV align=center><FONT face=serif size=2>21</FONT></DIV>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><FONT face=serif size=2>For the nine months ended June 30,
2009, SG&amp;A decreased $0.8 million or 7% compared to the nine month period
ended June 30, 2008. SG&amp;A expenses include $0.5 million and $0.4 million of
stock-based compensation expense for the nine months ended June 30, 2009 and
2008, respectively. SG&amp;A expenses for the nine months ended June 30, 2009
and 2008 include $0.1 million and $0.3 million, respectively, of costs related
to compliance with the Sarbanes-Oxley Act. Selling expenses decreased $0.7
million due to reductions in force at our Bruce operations and decreased
commissions. General and administrative expenses decreased $0.1 million due
primarily to lower compensation expense, offset by the increases in stock-based
compensation expense.</FONT></P>
<P align=justify><B><I><FONT face=serif size=2>Impairment and Restructuring
Charge</FONT></I></B></P>
<P align=justify><FONT face=serif size=2>The Bruce operations are primarily
dependent upon a mature segment of the semiconductor industry which is
experiencing a significant downturn. The industry downturn resulted in recent
operating losses and deterioration in forecasted revenue and earnings at Bruce.
It is uncertain when, and to what extent, the markets served by Bruce will
recover. Therefore, the Bruce operations were restructured in the second quarter
of fiscal 2009 to focus primarily on a parts supply business versus furnace
systems sales. The restructuring included a reduction in the number of employees
and a reduction in the amount of space required to operate the business. The
restructuring resulted in a charge of $620,000 in the second quarter of fiscal
2009, which includes a $350,000 charge for unutilized leased space, a $160,000
write-off of furnace-related inventory parts that are not expected to be
utilized in the future and $110,000 of severance and outplacement costs. Our
Bruce Technologies operations were also reorganized in the third quarter of
fiscal 2008, which resulted in a restructuring charge of $0.3 million,
consisting mainly of severance and outplacement costs for affected
personnel.</FONT></P>
<P align=justify><FONT face=serif size=2>Due to the circumstances related to the
Bruce operations discussed above, the Company determined it was necessary to
conduct an assessment of the ability to recover the carrying amount of
long-lived assets of the Bruce operations. The amount estimated to be
recoverable is based upon the Company&#146;s judgments and estimates of undiscounted
cash flows during the estimated remaining useful life of the assets. It was
determined that the carrying value of the net assets was not fully recoverable;
therefore, an impairment charge of $373,000 was recorded in the second quarter
of fiscal 2009 for the excess of carrying value over the fair value of the
customer list and non-compete agreement. Future adverse changes could be caused
by, among other factors, a downturn in the industries served, 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><FONT face=serif size=2>As a result of the impairment of
long-lived assets described above, it was necessary to conduct an interim review
of the goodwill and Bruce trademark for impairment. The fair value of the assets
group was determined through estimates of the present value of future cash flows
based upon the anticipated future use of the assets. As the carrying value of
the Bruce assets exceeded their estimated fair value, the carrying values of
goodwill ($89,000) and the Bruce trademark ($592,000) were also recorded as an
impairment charge in the second quarter of fiscal 2009.</FONT></P>
<P align=justify><FONT face=serif size=2>The total amount of the impairment
charge was $1.1 million. Details of the impairment charge are as
follows:</FONT></P>
<TABLE style="FONT-SIZE: 12pt; LINE-HEIGHT: 13pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="70%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>Gross</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>Net</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>Carrying</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>Accumulated</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>Carrying</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>Amount</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="5%" colSpan=2><B><FONT face=serif size=2>Amortization</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="5%" colSpan=2><B><FONT face=serif size=2>Amount</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="17%" colSpan=8><B><FONT face=serif size=1>(dollars in thousands)</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#cceeff><FONT face=serif size=2>Goodwill</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>89</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="4%" 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 face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>89</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"><FONT face=serif size=2>Trademark</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>592</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>592</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#cceeff><FONT face=serif size=2>Customer list</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="4%" bgColor=#cceeff><FONT face=serif size=2>276</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="4%" bgColor=#cceeff><FONT face=serif size=2>87</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="4%" bgColor=#cceeff><FONT face=serif size=2>189</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"><FONT face=serif size=2>Non-compete
      agreement</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; 350</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; 166</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=2>184</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment Charge</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="4%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="4%" 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="4%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;
      1,054</FONT></TD></TR></TABLE><BR>
<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 and processes; materials and supplies used in
those activities; and product prototyping.</FONT></P>
<P align=center><FONT face=serif size=2>22</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<TABLE style="FONT-SIZE: 12pt; LINE-HEIGHT: 13pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="54%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="22%" colSpan=12><B><FONT face=serif size=2>Three Months Ended</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="22%" colSpan=12><B><FONT face=serif size=2>Nine Months Ended</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="54%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>June 30,</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>June 30,</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>Inc.</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>June 30,</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>June 30,</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>Inc.</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="54%"></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>2009</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>2008</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>(Dec)</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2><STRONG>%</STRONG></FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>2009</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>2008</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>(Dec)</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2><STRONG>%</STRONG></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="54%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="17%" colSpan=9><B><FONT face=serif size=1>(dollars in thousands)</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;</TD>
    <TD noWrap align=center width="3%">&nbsp;</TD>
    <TD noWrap align=center width="1%">&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="17%" colSpan=9><B><FONT face=serif size=1>(dollars in thousands)</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="54%" bgColor=#cceeff><FONT face=serif size=2>Solar and Semiconductor</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="4%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="4%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></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></TD>
    <TD noWrap align=left width="4%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="4%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="54%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equipment Segment</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>151</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>210</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(59</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(28</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>%)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>527</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>686</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(159</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(23</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="54%"><FONT face=serif size=2>Polishing
      Supplies Segment</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><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%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><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%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>0</FONT></TD>
    <TD 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%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT size=2>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><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%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>0</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="54%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total R&amp;D</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><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp; 151</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp; 210</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><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp; (59</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; (28</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>%)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp; 527</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><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp; 686</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp; (159</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; (23</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>%)</FONT></TD></TR></TABLE><BR>
<P align=justify><FONT face=serif size=2>Research and development costs for the
three and nine months ended June 30, 2009 decreased $0.1 million and $0.2
million, respectively, compared to the three and nine month periods ended June
30, 2008. The decrease is due primarily to increased reimbursements through
governmental research and development grants which are netted against these
expenses.</FONT></P>
<P align=justify><B><I><FONT face=serif size=2>Interest and other income
(expense), net<BR><FONT size=1>&nbsp;</FONT><BR></FONT></I></B><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. Interest
income represents earnings on invested funds. Interest expense primarily
consists of interest incurred on equipment financing.</FONT></P>
<TABLE style="FONT-SIZE: 12pt; LINE-HEIGHT: 13pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="64%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="17%" colSpan=10><B><FONT face=serif size=2>Three Months Ended</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="17%" colSpan=10><B><FONT face=serif size=2>Nine Months Ended</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%"><B><FONT face=serif size=2>Interest and
      other</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>June 30,</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>June 30,</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>Inc.</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>June 30,</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>June 30,</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>Inc.</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="64%"><B><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; income (expense),
      net</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>2009</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>2008</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>(Dec)</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>2009</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>2008</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><B><FONT face=serif size=2>(Dec)</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="17%" colSpan=10><B><FONT face=serif size=1>(dollars in thousands)</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="17%" colSpan=10><B><FONT face=serif size=1>(dollars in thousands)</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%" bgColor=#cceeff><FONT face=serif size=2>Interest and other income</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="3%" bgColor=#cceeff></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></TD>
    <TD noWrap align=left width="4%" 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="3%" bgColor=#cceeff></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></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></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></TD>
    <TD noWrap align=left width="4%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="3%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (expense), net</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(4</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>169</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(173</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>54</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>$</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>673</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(619</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="64%"><FONT face=serif size=2>Foreign currency
      gains</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="3%">&nbsp;</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=left width="4%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></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="3%">&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="4%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (losses)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>(29</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%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=2>79</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; (108</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%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (40</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%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=2>76</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>(116</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="64%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total</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><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (33</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;
    248</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><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>(281</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>14</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><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;
    749</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#cceeff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#cceeff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;
      (735</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#cceeff><FONT face=serif size=2>)</FONT></TD></TR></TABLE><BR>
<P align=justify><FONT face=serif size=2>Interest income on invested funds
decreased due to lower interest rates during fiscal 2009. Foreign currency gains
or losses were less than $0.1 million in each reporting period.</FONT></P>
<P align=justify><B><I><FONT face=serif size=2>Income Taxes<BR><FONT size=1>&nbsp;</FONT><BR></FONT></I></B><FONT face=serif size=2>During the three
months ended June 30, 2009 and 2008, we recorded income tax expense (benefit) of
($0.1) million and $0.8 million, for an effective tax rate of 30% and 40%,
respectively. During the nine months ended June 30, 2009 and 2008, we recorded
income tax expense (benefit) of ($0.1) million and $0.9 million. The income tax
provision for the nine months ended June 30, 2009 and June 30, 2008 is based on
the estimated annual effective tax rate for the entire year and changes in the
valuation allowance on deferred tax assets in existence at the beginning of the
fiscal year. These estimated annual effective tax rates are adjusted at the end
of each interim quarter, based on our estimates for the fiscal year of pretax
income or loss, permanent differences, statutory tax rates and changes in those
deferred tax assets for which we have established a valuation allowance, and tax
planning strategies in the various jurisdictions in which the Company operates.
The resulting effective tax rates reflected in the statement of operations for
the nine months ended June 30, 2009 and June 30, 2008 were approximately 7% and
40%, respectively. The effective tax rate for the nine months ended June 30,
2009 was negatively impacted by an increase in the valuation allowance and
permanent differences between financial income and taxable income, which were
higher in relation to the pre-tax loss. Without these adjustments a larger tax
benefit would have been recorded for the period.</FONT></P>
<P align=justify><B><FONT face=serif size=2>Liquidity and Capital
Resources<BR><EM><FONT size=1>&nbsp;</FONT></EM><BR></FONT></B><FONT face=serif size=2>At June 30, 2009 and September 30, 2008, cash and cash equivalents and
current restricted cash were $40.4 million and $39.5 million, respectively. The
increase in cash was primarily provided by cash from operations of $4.8 million.
This was offset by purchases of property, plant and equipment and payments for
licensing agreements and repurchases of common stock. In the first quarter of
fiscal 2009 we terminated our line of credit in the amount of Euro 1.0 million
(approximately $1.3 million). Our working capital as of June 30, 2009 and
September 30, 2008 was $56.4 million and $58.3 million, respectively. Our ratio
of current assets to current liabilities increased to 4.5:1 as of June 30, 2009
from 3.2:1 as of September 30, 2008. We believe that our principal sources of
liquidity discussed above are sufficient to meet our anticipated needs for
current operations for at least the next 12 months.</FONT></P>
<DIV align=center><FONT face=serif size=2>23</FONT></DIV>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<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 2008, the Board of
Directors approved a stock repurchase program authorizing the repurchase of up
to $4 million of 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 future purchases
of shares 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 are funded from available
working capital. The program may be 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></P>
<P align=justify><FONT face=serif size=2>Cash provided by our operating
activities was $4.8 million for the nine months ended June 30, 2009, compared to
$3.8 million used in such activities for the nine months ended June 30, 2008. In
the first nine months of fiscal 2009, cash was generated by decreases in
accounts receivable, inventories and current restricted cash as well as earnings
from operations, adjusted for non-cash charges, partially offset by decreases in
accounts payable, accrued liabilities and customer deposits. During the nine
months ended June 30, 2008 cash was primarily used to finance increases in
inventory, accounts receivable, prepaid and other assets. This use of cash was
partially offset by increases in accounts payable, accrued liabilities and
customer deposits.</FONT></P>
<P align=justify><B><I><FONT face=serif size=2>Cash Flows from Investing
Activities</FONT></I></B></P>
<P align=justify><FONT face=serif size=2>Our investing activities for the nine
months ended June 30, 2009 and 2008 used $1.8 million and $10.9 million
respectively. For the nine months ended June 30, 2009, capital expenditures
amounted to $1.1 million primarily for machinery and equipment and we made $0.8
million of payments for our licensing agreements with PST. For nine months ended
June 30, 2008, we used cash of $8.1 million related to the acquisition of R2D.
Capital expenditures in the same period were $2.4 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></P>
<P align=justify><FONT face=serif size=2>For the nine months ended June 30,
2009, $0.6 million of cash was used in financing activities for the repurchase
of shares ($0.4 million) and for the payment of long-term debt of $0.1 million.
In the first nine months of fiscal 2008 cash of $33.9 million was 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. Payments of long-term debt
amounted to $0.7 million in the first nine months 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 June 30, 2009, 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></P>
<P align=justify><FONT face=serif size=2>The only significant changes in
contractual obligations since September 30, 2008 have been changes in purchase
obligations and additional obligations related to newly licensed products (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>24</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><B><FONT face=serif size=2>Critical Accounting
Policies</FONT></B></P>
<P align=justify><FONT face=serif size=2>Management&#146;s Discussion and Analysis of
Financial Condition and Results of Operations discuss 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 collectability, 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 timing and amounts of revenue, costs and
expenses to be recognized and 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 the 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 collectability is reasonably assured. For us, this
policy generally results in revenue recognition at the following
points:</FONT></P>
<UL style="FONT-SIZE: 10pt; TEXT-ALIGN: justify">
  <LI><FONT face=serif size=2>For the solar and semiconductor equipment segment,
  transactions where legal title passes to the</FONT> <FONT face=serif size=2>customer upon shipment, we recognize revenue upon shipment for those
  products where the customer&#146;s</FONT> <FONT face=serif size=2>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</FONT> <FONT face=serif size=2>price contingent upon their
  completion, generally 10%-20% of the system&#146;s selling price (the</FONT> <FONT face=serif size=2>&#147;holdback&#148;), and directly related costs, if any, are
  deferred and recognized into income when the tasks</FONT> <FONT face=serif size=2>are completed. Since we defer only those costs directly related to
  installation or other unit of accounting</FONT> <FONT face=serif size=2>not
  yet delivered and the contingent portion of the contract price is often
  considerably greater than the</FONT> <FONT face=serif size=2>fair market value
  of those items, our policy at times will result in deferral of profit that
  is</FONT> <FONT face=serif size=2>disproportionately greater than the deferred
  revenue. When this is the case, the gross margin recognized</FONT> <FONT face=serif size=2>in one period will be lower and the gross margin 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</FONT> <FONT face=serif size=2>configured systems and processes, the revenue and directly
  related costs are deferred at the time of</FONT> <FONT face=serif size=2>shipment and recognized into income at the time of customer acceptance
  or when this criterion has been</FONT> <FONT face=serif size=2>met. We have,
  on occasion, experienced longer than expected delays in receiving cash from
  certain</FONT> <FONT face=serif size=2>customers pending final installation or
  system acceptance. If some of our customers refuse to pay the</FONT> <FONT face=serif size=2>final payment, or otherwise delay final acceptance or
  installation, the deferred revenue would not be</FONT> <FONT face=serif size=2>recognized, adversely affecting our future operating
  results.<BR>&nbsp;</FONT>
  <LI><FONT face=serif size=2>Equipment sold by the polishing supplies segment
  generally does not include process guarantees,</FONT> <FONT face=serif size=2>acceptance criteria or holdbacks; therefore in most instances, the
  related revenue is recorded upon</FONT> <FONT face=serif size=2>transfer of
  title which is generally at time of shipment. Our shipping terms for both
  segments are</FONT> <FONT face=serif size=2>primarily 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</FONT> <FONT face=serif size=2>post shipment obligations other than standard
  warranties.</FONT></LI></UL>
<P align=center><FONT face=serif size=2>25</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<UL style="FONT-SIZE: 10pt; TEXT-ALIGN: justify">
  <LI><FONT face=serif size=2>Service revenue is recognized upon performance of
  the services requested by the customer. Revenue</FONT> <FONT face=serif size=2>related to service contracts is recognized ratably over the period of
  the contract or in accordance with the</FONT> <FONT face=serif size=2>terms of
  the contract, which generally coincides with the performance of the services
  requested by the</FONT> <FONT face=serif size=2>customer.</FONT></LI></UL>
<P align=justify><I><FONT face=serif size=2><STRONG>Income
Taxes</STRONG></FONT></I><FONT face=serif size=2><STRONG>.</STRONG> The
calculation of tax liabilities involves significant judgment in estimating the
impact of uncertainties in the application of complex tax laws in the various
jurisdictions in which the Company operates. This requires us to estimate our
(i) current tax exposure; (ii) temporary differences that result from differing
treatment of certain items for tax and accounting purposes and (iii)
unrecognized tax benefits.</FONT> <FONT face=serif size=2>The estimated annual
effective tax rate used in calculating the income tax provision for interim
periods is highly dependent upon estimates of pre-tax income for the fiscal
year. Resolution of these uncertainties in a manner inconsistent with our
expectations could have a material impact on our operations and financial
condition.</FONT></P>
<P align=justify><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 carryforwards of net operating losses in certain state and foreign
jurisdictions and foreign tax credits available to reduce taxable income and tax
payments in future periods. 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. During the period from
2005 through 2008, we achieved 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 deferred tax assets and foreign net
operating losses that may not be recovered.</FONT></P>
<P align=justify><FONT face=serif size=2>In fiscal 2008, we adopted the
provisions of FIN 48, &#147;Accounting for Uncertainty in Income Taxes &#150; an
Interpretation of FASB Statement No. 109,&#148; (FIN 48) as of the beginning of
fiscal 2008. FIN 48 requires application of a more likely than not threshold to
the recognition and derecognition of uncertain tax positions. FIN 48 requires us
to recognize the amount of tax benefit that has a greater than 50 percent
likelihood of being ultimately realized upon settlement. It further requires
that a change in judgment related to the expected ultimate resolution of
uncertain tax positions be recognized in earnings in the quarter of such change.
Prior to adoption, our policy was to establish reserves that reflected the
probable outcome of known tax contingencies.</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 or net realizable value. Costs for approximately 80% of inventory
is determined on an average cost basis with the remainder determined on a
first-in, first-out (FIFO) basis. 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 or
its payment trends, could have a material adverse impact on the collectability
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 June 30, 2009, 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=center><FONT face=serif size=2>26</FONT></P>
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<PAGE>
<P align=justify><FONT face=serif size=2><B><I>Impairment of Long-lived
Assets.</I></B> 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 and indefinite-lived intangibles are 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.
Below is a more detailed explanation of the procedures we perform.</FONT></P>
<P align=justify><FONT face=serif size=2>We perform a two-step impairment test
discussed in SFAS 142. In the first step, we estimate the fair value of the
reporting unit and compare it to the carrying value of the reporting unit. Most
of our reporting units are operating segments that are one level below the
reportable segment into which they are aggregated. The one exception is P.R.
Hoffman Machine Products, Inc. which is a reportable segment. When the carrying
value exceeds the fair value of the reporting unit, the second step is performed
to measure the amount of the impairment loss, if any. In the second step, the
amount of the impairment loss is the excess of the carrying amount of the
goodwill and other intangibles not subject to amortization over their implied
fair value.</FONT></P>
<P align=justify><FONT face=serif size=2>The methods used to estimate fair value
of the reporting unit for the purpose of determining the implied fair value of
goodwill include the market approach and discounted cash flows, as
follows:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD vAlign=top noWrap align=right><FONT face=serif size=2>i.</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD vAlign=top align=left width="100%">
      <P align=justify><FONT face=serif size=2>One valuation methodology used is
      to determine the multiples of market value of invested capital (&#147;MVIC&#148;) of
      similar public companies to their revenue for the last twelve months
      (&#147;LTM&#148;) and next twelve months (&#147;NTM&#148;), and apply those multiples to the
      revenue for the comparable periods of the reporting unit being tested for
      impairment. One benefit of this approach is it is the closest to quoted
      market prices that are readily available. However, we generally give less
      weight to this method, because the market value of the minority interest
      of public companies may not be that relevant to the fair value of our
      wholly-owned reporting units, which are not public companies. Also, MVIC
      to revenue for the LTM uses a historical value in the denominator, while
      the market values tend to be forward looking; and MVIC of revenue for the
      NTM involves the use of projections for both the comparable companies and
      the reporting unit.</FONT></P></TD></TR>
  <TR>
    <TD noWrap></TD>
    <TD vAlign=top align=right width="100%" colSpan=3>&nbsp;&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap align=right></TD>
    <TD vAlign=top noWrap align=right><FONT face=serif size=2>ii.</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top align=left width="100%">
      <P align=justify><FONT face=serif size=2>Another market approach that we
      sometimes use is based upon prices paid in merger and acquisition
      transactions for other companies in the same industry, again applying the
      MVIC to revenue of those companies to the historical and projected revenue
      of the reporting unit. When we use both market prices determined as
      described in (i), above, and prices paid in merger and acquisition
      transactions, we weight them to determine an indicated value under the
      market approach.</FONT></P></TD></TR>
  <TR>
    <TD noWrap></TD>
    <TD vAlign=top align=right width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap align=right></TD>
    <TD vAlign=top noWrap align=right><FONT face=serif size=2>iii.</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top align=left width="100%">
      <P align=justify><FONT face=serif size=2>As stated, we also use discounted
      cash flows as an indication of what a third-party would pay for the
      reporting unit in an arms-length transaction. This method requires
      projections of EBITDA (earnings before interest, taxes, depreciation and
      amortization) and applying an appropriate discount rate based on the
      weighted average cost of capital for the reporting
  unit.</FONT></P></TD></TR></TABLE>
<P align=justify><FONT face=serif size=2>We generally give the greatest weight,
often 75% or more, to the discounted cash flow method, due to difficulty in
identifying a sufficient number of companies that are truly comparable to a
given reporting unit. This is because two of our three reporting units are
relatively small businesses serving niche markets.</FONT></P>
<P align=justify><FONT face=serif size=2>The material estimates and assumptions
used in the discounted cash flows method of determining fair value include (i)
the appropriate discount rate, given the risk-free rate of return and various
risk premiums, (ii) projected revenues, (iii) projected material cost as a
percentage of revenue, and (iv) the rate of increase in payroll and other
expense. Quantitatively, the discount rate is the assumption that has the most
pervasive effect on the discounted cash flows. We determine the discount rate
used based on input from a valuation firm, which applies various approaches
taking into account the particular circumstances of the reporting unit in
arriving at a recommendation. For annual valuations, we test the sensitivity of
the assumptions used in our discounted cash flow projection with the aid of a
valuation firm, which utilizes a Monte Carlo simulation model, wherein various
probabilities are assigned to the key assumptions.</FONT></P>

<P align=center><FONT face=serif size=2>27</FONT></P>
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<PAGE>


<P align=justify><FONT face=serif size=2>In the current year, we performed a
mid-year test of the impairment of the goodwill and other intangibles due to
changing circumstances regarding the Bruce Technologies reporting unit. This
test required us to use judgments and estimates that could be materially
different than actual results. Bruce Technologies continued to incur losses
after a restructuring and cost reductions put into place during the prior fiscal
year and expectations that semiconductor customers served by this reporting unit
would not in the future achieve the kinds of growth rates they had in the past due to increased
maturity of that industry. We used the same discount rate as used in the prior
annual impairment test of this reporting unit, but the other assumptions became
more conservative due to the changing circumstances. It was primarily the
lowered projections of future revenue that resulted in a lower estimate of fair
value and the impairment loss. The payroll and certain expense assumptions,
however, were lowered to take into account a second restructuring of the
reporting unit, which involved a significant reduction in the number of
employees. The material cost assumption was also lowered to take into account a
change in product mix. </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;Item 1: Financial Information&#148;
under &#147;Impact of Recently Issued Accounting Pronouncements&#148;. </FONT></P>
<P align=center><FONT face=serif size=2>28 </FONT></P>
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<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><B><FONT face=serif size=2></FONT></B><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 operations 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, &#147;Quantitative
and Qualitative Disclosures About Market Risk&#148; in our Annual Report on Form 10-K
for the fiscal year ended September 30, 2008.</FONT><FONT face=serif size=2>
</FONT></P>
<P align=justify><FONT face=serif size=2>As of June 30, 2009, 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
and nine month periods ended June 30, 2009 and 2008. As of June 30, 2009, our
foreign subsidiaries had $0.7 million of net assets (cash, receivables and
amounts due to our foreign subsidiaries by our U.S. companies offset by minor
amounts of accounts payable) denominated in currencies other than the functional
currency. A 10% change in the value of the functional currency relative to the
other currencies would result in gains or losses of approximately $0.1
million.</FONT></P>
<P align=justify><FONT face=serif size=2>During the nine months ended June 30,
2009 we incurred foreign currency translation losses, a component of
comprehensive income (loss) which was a direct adjustment to stockholders&#146;
equity, of $0.7 million due to the strengthening of the U.S. dollar relative to
the Euro. Our net investment in and long-term advances to our foreign operations
totaled $43.0 million as of June 30, 2009. A 10% change in the value of the Euro
relative to the U.S. dollar would cause a foreign currency translation
adjustment of approximately $4.3 million.</FONT><FONT face=serif size=2>
</FONT></P>
<P align=justify><FONT face=serif size=2>During the nine months ended June 30,
2009, our European operations transacted U.S. dollar denominated sales and
purchases of $4.0 million and $2.3 million, respectively. As of June 30, 2009,
we had purchase commitments of $2.4 million denominated in a currency other than
the functional currency of our transacting operation. A 10% change in the
relevant exchange rates between the time the order was placed and the time of
receipt would cause costs of such orders to be approximately $0.2 million more
or less than expected on the date the order was placed. As of June 30, 2009 we
had no sales commitments denominated in a currency other than the functional
currency of our transacting operation.</FONT><FONT face=serif size=2>
</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 June 30, 2009, 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 three months ended June 30,
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>29 </FONT></P>
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<PAGE>
<P align=justify><B><FONT face=serif size=2>PART II. OTHER INFORMATION
</FONT></B></P>
<P align=justify><B><FONT face=serif size=2>Item 1A. Risk Factors
</FONT></B></P>
<P align=justify><FONT face=serif size=2>The most significant risk factors
applicable to Amtech are described in Part I, Item 1A (Risk Factors) of Amtech&#146;s
Annual Report on Form 10-K for the fiscal year ended September 30, 2008 (our
&#147;2008 Form 10-K&#148;). Except as set forth below, there have been no material
changes to the risk factors previously disclosed on our 2008 Annual Report on
Form 10-K. </FONT></P>
<P align=justify><B><I><FONT face=serif size=2>The solar and semiconductor
equipment industry is competitive and we are relatively small in size and have
fewer resources in comparison with our competitors. </FONT></I></B></P>
<P align=justify><FONT face=serif size=2>Our industry includes large
manufacturers with substantial resources to support customers worldwide. Our
future performance depends, in part, upon our ability to continue to compete
successfully worldwide. Some of our competitors are diversified companies having
substantially greater financial resources and more extensive research,
engineering, manufacturing, marketing and customer service and support
capabilities than we can provide. We face competition from companies whose
strategy is to provide a broad array of products, some of which compete with the
products and services that we offer. These competitors may bundle their products
in a manner that may discourage customers from purchasing our products. In
addition, we face competition from smaller emerging solar and semiconductor
equipment companies whose strategy is to provide a portion of the products and
services that we offer at often a lower price than ours or use innovative
technology to sell products into specialized markets. Loss of competitive
position could impair our prices, customer orders, revenue, gross margin and
market share, any of which would negatively affect our financial position and
results of operations. Our failure to compete successfully with these other
companies would seriously harm our business. There is a risk that competitors
will develop and market more advanced products than those that we are then able
to offer, or that competitors with greater financial resources may decrease
prices thereby putting us under financial pressure. The occurrence of any of
these events could have a negative impact on our revenue. </FONT></P>
<P align=justify><B><I><FONT face=serif size=2>We are dependent on key personnel
and relationships for our business and product development and sales, and any
loss of our key personnel to competitors or other industries or the failure to
perform by key technology vendors could dramatically, negatively impact our
future operations. </FONT></I></B></P>
<P align=justify><FONT face=serif size=2>Historically, our product development
has been accomplished through cooperative efforts with key customers and
vendors. Our relationship with a key technology vendor and some customers is
substantially dependent on personal relations established by our President and
Chief Executive Officer. Our relationship with a major research
institute, discussed below, and a European customer that has been instrumental in the development of our
small batch vertical furnace are substantially dependent upon our European
General Manager. We are dependent upon our Technical Director of R2D for the
development of our automation technology. Furthermore, our multi-product solar
growth strategy is heavily dependent on PST Co., Ltd. and The Energy Research
Centre of the Netherlands for delivering key new products and confirming the
technological advantage of those products. Should any of these relationships
terminate or our key technology vendors fail to adequately perform, it could
materially and adversely affect our multi-product solar growth strategy.
</FONT></P>
<P align=justify><B><I><FONT face=serif size=2>We may not be able to keep pace
with the rapid change in the technology we use in our products.
</FONT></I></B></P>
<P align=justify><FONT face=serif size=2>Success in the solar and semiconductor
equipment industry depends, in part, on continual improvement of existing
technologies and rapid innovation of new solutions that have a technological,
price or other advantages over those of our competitors. For example, the solar
industry continues to increase cell efficiency and strives to reach grid parity.
As another example, the semiconductor industry continues to shrink the size of
semiconductor devices. These and other evolving customer needs require us to
respond with continued development programs. Technical innovations are
inherently complex and require long development cycles and appropriate
professional staffing. Our future business success depends on our ability to
develop and introduce new products, or new uses for existing products that more
effectively address changing customer needs than the products of our
competitors, win market acceptance of these new products or uses and manufacture
any new products in a timely and cost-effective manner. If we do not develop and
introduce new products, technologies or uses for existing products in a timely
manner relative to our competitors and continually find ways of reducing the
cost to produce them in response to changing market conditions or customer
requirements, our business could be seriously harmed.</FONT></P>
<P align=center><FONT face=serif size=2>30 </FONT></P>
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<PAGE>

<BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=justify width="2%"><B><FONT face=serif size=2>Item 6.</FONT></B></TD>
    <TD vAlign=top align=justify width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD vAlign=top align=justify width="92%"><B><FONT face=serif size=2>Exhibits</FONT></B></TD>
    <TD vAlign=top align=justify width="3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD vAlign=top align=justify width="2%"></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=justify width="2%"><FONT size=2>31.1</FONT></TD>
    <TD vAlign=top align=justify width="1%"></TD>
    <TD vAlign=top align=justify width="92%"><FONT face=serif 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></TD>
    <TD vAlign=top align=justify width="3%"></TD>
    <TD vAlign=top align=center width="2%"><FONT size=2>*</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=justify width="2%"></TD>
    <TD vAlign=top align=justify width="1%"></TD>
    <TD vAlign=top align=justify width="95%" colSpan=2>&nbsp;</TD>
    <TD vAlign=top align=center width="2%"></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=justify width="2%"><FONT size=2>31.2</FONT></TD>
    <TD vAlign=top align=justify width="1%"></TD>
    <TD vAlign=top align=justify width="92%"><FONT face=serif size=2>Certification of Chief Financial Officer Pursuant to Rule
      13a-14(a)/15d-14(a) <FONT face=serif size=2>of the Securities Exchange Act
      of 1934, as Amended</FONT></FONT></TD>
    <TD vAlign=top align=justify width="3%"></TD>
    <TD vAlign=top align=center width="2%"><FONT size=2>*</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=justify width="2%"></TD>
    <TD vAlign=top align=justify width="1%"></TD>
    <TD vAlign=top align=justify width="95%" colSpan=2>&nbsp;</TD>
    <TD vAlign=top align=center width="2%"></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=justify width="2%"><FONT size=2>32.1</FONT></TD>
    <TD vAlign=top align=justify width="1%"></TD>
    <TD vAlign=top align=justify width="92%"><FONT face=serif size=2>Certification of Chief Executive Officer Pursuant to 18 U.S.C.
      Section 1350, as Adopted Pursuant to Sectio<FONT face=serif size=2>n 906
      of the Sarbanes-Oxley Act of 2002</FONT></FONT></TD>
    <TD vAlign=top align=justify width="3%"></TD>
    <TD vAlign=top align=center width="2%"><FONT size=2>*</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=justify width="2%"></TD>
    <TD vAlign=top align=justify width="1%"></TD>
    <TD vAlign=top align=justify width="92%">&nbsp;</TD>
    <TD vAlign=top align=justify width="3%"></TD>
    <TD vAlign=top align=center width="2%"></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=justify width="2%"><FONT size=2>32.2</FONT></TD>
    <TD vAlign=top align=justify width="1%"></TD>
    <TD vAlign=top align=justify width="92%"><FONT face=serif size=2>Certification of Chief Financial Officer Pursuant to 18 U.S.C.
      Section 1350, as Adopted Pursuant to Sectio<FONT face=serif size=2>n 906
      of the Sarbanes-Oxley Act of 2002</FONT></FONT></TD>
    <TD vAlign=top align=justify width="3%"></TD>
    <TD vAlign=top align=center width="2%"><FONT size=2>*</FONT></TD></TR></TABLE>____________________<BR>
<P align=justify><FONT face=serif size=2>*<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Filed herewith. </FONT></P>

<P align=center><FONT face=serif size=2>31 </FONT></P>

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<PAGE>
<P align=justify><FONT face=serif size=2>SIGNATURES&nbsp;</FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>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;&nbsp;</FONT>AMTECH SYSTEMS, INC. </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="2%"><FONT size=2>By&nbsp;&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="25%"><FONT face=serif size=2>/s/ Robert T. Hass</FONT></TD>
    <TD noWrap align=left width="25%">&nbsp;</TD>
    <TD 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="22%"><FONT face=serif size=2>August 6, 2009</FONT>&nbsp; </TD>
    <TD noWrap align=left width="21%">&nbsp;</TD></TR>
  <TR>
    <TD align=left width="2%"></TD>
    <TD align=left width="2%"></TD>
    <TD align=left width="96%" colSpan=5>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="50%" colSpan=2><FONT face=serif size=2>Robert
      T. Hass</FONT>&nbsp; </TD>
    <TD noWrap align=left width="3%">&nbsp; </TD>
    <TD noWrap align=left width="43%" colSpan=2>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="50%" colSpan=2><FONT face=serif size=2>Chief
      Accounting Officer</FONT>&nbsp; </TD>
    <TD noWrap align=left width="3%">&nbsp; </TD>
    <TD noWrap align=left width="43%" colSpan=2>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="50%" colSpan=2><FONT face=serif size=2>(Principal Accounting Officer)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="3%">&nbsp; </TD>
    <TD noWrap align=left width="43%" colSpan=2>&nbsp;
</TD></TR></TABLE><BR>
<P align=center><FONT face=serif size=2>32 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><B><FONT face=serif size=2>EXHIBIT INDEX </FONT></B></P>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD vAlign=top align=justify width="3%"><B><FONT face=serif size=2>Exhibit</FONT></B></TD>
    <TD vAlign=top width="1%"></TD>
    <TD vAlign=top align=justify width="88%"></TD>
    <TD vAlign=top align=justify width="1%"></TD>
    <TD vAlign=top align=justify width="6%"><B><FONT face=serif size=2>Page
      or</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=justify width="3%"><B><FONT face=serif size=2>Number</FONT></B></TD>
    <TD vAlign=top width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="88%"><B><FONT face=serif size=2>Description</FONT></B> </TD>
    <TD vAlign=top align=justify width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=justify width="6%"><B><FONT face=serif size=2>Method of Filing</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=justify width="3%" bgColor=#cceeff><FONT size=2>31.1</FONT></TD>
    <TD vAlign=top width="1%" bgColor=#cceeff></TD>
    <TD vAlign=top align=left width="88%" bgColor=#cceeff>
      <P align=justify><FONT face=serif size=2>Certification of Chief Executive
      Officer Pursuant to Rule 13a-14(a)/15d-14(a) <FONT face=serif size=2>of
      the Securities Exchange Act of 1934, as Amended</FONT></FONT></P></TD>
    <TD vAlign=top align=left width="1%" bgColor=#cceeff>&nbsp;</TD>
    <TD vAlign=top align=center width="6%" bgColor=#cceeff><FONT size=2>*</FONT></TD></TR>
  <TR>
    <TD vAlign=top width="99%" colSpan=5>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=justify width="3%" bgColor=#cceeff><FONT size=2>31.2</FONT></TD>
    <TD vAlign=top width="1%" bgColor=#cceeff></TD>
    <TD vAlign=top align=left width="88%" bgColor=#cceeff>
      <P align=justify><FONT face=serif size=2>Certification of Chief Financial
      Officer Pursuant to Rule 13a-14(a)/15d-14(a) <FONT face=serif size=2>of
      the Securities Exchange Act of 1934, as Amended</FONT></FONT></P></TD>
    <TD vAlign=top align=left width="1%" bgColor=#cceeff></TD>
    <TD vAlign=top align=center width="6%" bgColor=#cceeff><FONT size=2>*</FONT></TD></TR>
  <TR>
    <TD vAlign=top width="99%" colSpan=5>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=justify width="3%" bgColor=#cceeff><FONT size=2>32.1</FONT></TD>
    <TD vAlign=top width="1%" bgColor=#cceeff></TD>
    <TD vAlign=top align=left width="88%" 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
      Sectio<FONT face=serif size=2>n 906 of the Sarbanes-Oxley Act of
      2002</FONT></FONT></P></TD>
    <TD vAlign=top align=left width="1%" bgColor=#cceeff></TD>
    <TD vAlign=top align=center width="6%" bgColor=#cceeff><FONT size=2>*</FONT></TD></TR>
  <TR>
    <TD vAlign=top width="99%" colSpan=5>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=justify width="3%" bgColor=#cceeff><FONT size=2>32.2</FONT></TD>
    <TD vAlign=top width="1%" bgColor=#cceeff></TD>
    <TD vAlign=top align=left width="88%" 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
      Sectio<FONT face=serif size=2>n 906 of the Sarbanes-Oxley Act of
      2002</FONT></FONT></P></TD>
    <TD vAlign=top align=left width="1%" bgColor=#cceeff></TD>
    <TD vAlign=top align=center width="6%" bgColor=#cceeff><FONT size=2>*</FONT></TD></TR></TABLE>____________________<BR>

<P align=justify><FONT face=serif size=2>*<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Filed herewith. </FONT></P>
<P align=center><FONT face=serif size=2>33 </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=justify><FONT face=serif size=2>I, Jong S. Whang, certify that:
</FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>1. I have reviewed this Quarterly
Report on Form 10-Q of Amtech Systems, Inc. (the &#147;registrant&#148;), </FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&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=justify><FONT face=serif size=2><FONT size=3>&nbsp;&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 condition, results of
operations and cash flows of the registrant as of, and for, the periods
presented in this report; </FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>4.</FONT><FONT face=sans-serif size=2> </FONT><FONT face=serif size=2>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 have:</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(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=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(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=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(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=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(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=justify><FONT face=serif size=2><FONT size=3>&nbsp;&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 the registrant&#146;s board of directors (or persons performing the
equivalent functions):</FONT></P>

<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(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=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(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="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><FONT size=2>By</FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="25%"><FONT face=serif size=2>/s/ Jong S. Whang</FONT>&nbsp; </TD>
    <TD noWrap align=left width="74%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=3><FONT face=serif size=2>Jong
      S. Whang</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=3><FONT face=serif size=2>President and Chief Executive Officer</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=3><FONT face=serif size=2>Amtech Systems, Inc.</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=3><FONT face=serif size=2>Date:
      August 6 , 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=justify><FONT face=serif size=2>I, Bradley C. Anderson, certify that:
</FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>1. I have reviewed this Quarterly
Report on Form 10-Q of Amtech Systems, Inc. (the &#147;registrant&#148;), </FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&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=justify><FONT face=serif size=2><FONT size=3>&nbsp;&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 condition, results of
operations and cash flows of the registrant as of, and for, the periods
presented in this report; </FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>4.</FONT><FONT face=sans-serif size=2> </FONT><FONT face=serif size=2>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 have:</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(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=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(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=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(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=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(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=justify><FONT face=serif size=2><FONT size=3>&nbsp;&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 the registrant&#146;s board of directors (or persons performing the
equivalent functions):</FONT></P>

<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(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=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(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="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><FONT size=2>By<FONT size=3>&nbsp;</FONT>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="25%"><FONT face=serif size=2>/s/ Bradley C. Anderson</FONT>&nbsp;
    </TD>
    <TD noWrap align=left width="74%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=3><FONT face=serif size=2>Bradley C. Anderson</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=3><FONT face=serif size=2>Chief
      Financial Officer</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=3><FONT face=serif size=2>Amtech Systems, Inc.</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=3><FONT face=serif size=2>Date:
      August 6 , 2009</FONT>&nbsp; </TD></TR></TABLE><BR>
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</DOCUMENT>
<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
<TEXT>

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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=justify>&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 June 30, 2009, 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=justify>&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=justify>&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>
<P align=justify>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><FONT size=2>By<FONT size=3>&nbsp;</FONT>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="25%"><FONT face=serif size=2>/s/ Jong S. Whang</FONT>&nbsp; </TD>
    <TD noWrap align=left width="74%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=3><FONT face=serif size=2>Jong
      S. Whang<FONT size=3>&nbsp; </FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=3><FONT face=serif size=2>President and Chief Executive Officer<FONT size=3>&nbsp;
      </FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=3><FONT face=serif size=2>Date:
      August 6, 2009<FONT size=3>&nbsp; </FONT></FONT></TD></TR></TABLE><BR>
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</DOCUMENT>
<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=justify>&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 June 30, 2009, 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=justify>&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=justify>&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>
<P align=justify>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><FONT size=2>By<FONT size=3>&nbsp;</FONT>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="25%"><FONT face=serif size=2>/s/ Bradley C. Anderson</FONT></TD>
    <TD noWrap align=left width="74%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=3><FONT face=serif size=2>Bradley C. Anderson<FONT size=3>&nbsp; </FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=3><FONT face=serif size=2>Chief
      Financial Officer<FONT size=3>&nbsp; </FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=3><FONT face=serif size=2>Date:
      August 6, 2009<FONT size=3>&nbsp; </FONT></FONT></TD></TR></TABLE><BR>
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