

<TABLE>
<CAPTION>
AG ASSOCIATES, INC.
Exhibit 11.01
STATEMENT REGARDING COMPUTATION OF EARNINGS PER SHARE
(in thousands, except per share data)



                                        Three Months Ended   Six Months Ended
                                             March 31,           March 31,
                                           1996     1995       1996     1995

<S>                                     <C>      <C>        <C>      <C>
Weighted average common shares
     outstanding during the period        5,857    2,957      5,856    2,948

Common share equivalents                    224      857        313      860
                                         -------  -------    -------  -------
Total                                     6,081    3,814      6,169    3,808
                                         =======  =======    =======  =======


Net Income                              $ 2,227  $ 1,761    $ 4,611  $ 3,208

Interest on convertible debentures           --       15         --       30
                                        -------- --------   -------- --------
Adjusted net income                     $ 2,227  $ 1,776    $ 4,611  $ 3,238
                                        ======== ========   ======== ========

Earnings per share                      $  0.37  $  0.47    $  0.75  $  0.85
                                        ======== ========   ======== ========
</TABLE>
