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                                                                  EXHIBIT (A)(8)

Contact:                                Agency:

Kirk Johnson                            Dori Jones
VP of Finance, CFO                      Account Manager
AG Associates                           MCA, Inc.
Phone: 408/935-2004                     Phone:  650/968-8900
Fax:   408/935-2701                     Fax:    650/968-8900      


              STEAG ELECTRONIC SYSTEMS TO ACQUIRE AG ASSOCIATES 
                          FOR $5.50 PER SHARE IN CASH

ESSEN, Germany and SAN JOSE, California--Jan. 19, 1999--STEAG Electronic Systems
GmbH and AG Associates, Inc. today jointly announced that they have entered into
a definitive agreement for STEAG to acquire all of the outstanding shares of AG
Associates for $5.50 per share in cash, which represents an approximate 26
percent premium over the closing price of the AG Associates common stock on
Friday, Jan. 15, 1999.

According to the agreement, a wholly owned subsidiary of STEAG will commence a
cash tender offer for the outstanding shares of AG Associates common stock no
later than Jan. 26, 1999.  Following the completion of the tender offer, STEAG
intends to merge the existing subsidiary with and into AG Associates. AG
Associates will then become a wholly owned subsidiary of STEAG.

Commenting on the acquisition, AG Associates Chairman and Chief Executive
Officer Dr. Arnon Gat noted, "When we sat down with STEAG and looked at our
respective companies, we found that we had very little customer overlap and
shared a common vision. Looking forward, we knew that in order to remain
competitive, AG would have to find the right partner. I am happy to say that
STEAG is that partner."

STEAG Chief Executive Officer Dr. Hans Betz commented,  "By acquiring AG
Associates and combining it with our existing RTP operation, STEAG AST
Elektronik, we feel that significant synergies and critical mass will be
achieved on a global scale. In addition, we believe that both companies bring
unique strengths that will benefit our respective customers."

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STEAG ELECTRONIC SYSTEMS TO ACQUIRE AS ASSOCIATES..............PAGE 2 OF 2


AG Associates' Board of Directors has unanimously approved the acquisition and
has resolved to recommend to the shareholders that they accept STEAG's tender
offer and tender their shares. SoundView Technology Group has served as AG
Associates' financial advisor in connection with this transaction and has
delivered to the directors of AG Associates its opinion that, as of Jan. 5,
1999, the consideration to be received by AG Associates' shareholders in the
transaction is fair, from a financial point of view, to such persons.

Consummation of the acquisition is subject to customary conditions, including
expiration or termination of the waiting period under the Hart-Scott-Rodino
Antitrust Improvements Act of 1976.  STEAG's obligation to purchase any shares
of AG Associates common stock in the tender offer is subject to the valid tender
of a number of shares which, when added to the shares owned by STEAG, represent
at least 90 percent of the AG Associates common stock then outstanding. If more
than 50 percent but less than 90 percent of the outstanding shares of AG
Associates common stock are tendered to STEAG's subsidiary in the tender offer,
then STEAG may reduce the number of shares subject to the tender offer to 49.9
percent of the outstanding shares of AG Associates common stock. AG Associates
then would call a special meeting of shareholders to vote on the merger of
STEAG's subsidiary with and into AG Associates. When the merger is effected,
each share of AG Associates common stock not tendered in the tender offer will
be converted into the right to receive $5.50 in cash, subject to any dissenters'
rights.

AG Associates is a leading supplier of rapid thermal processing (RTP) equipment
to the worldwide semiconductor industry. Founded in 1981, AG Associates is
headquartered in San Jose, and maintains customer service and support centers in
the United States, Europe and Far East to support its global customer base. The
company's common stock trades on the Nasdaq Stock Market under the symbol AGAI.

STEAG Electronic Systems GmbH, through its subsidiaries STEAG AST Elektronik and
STEAG MicroTech, is a leading supplier of RTP and wet processing systems for
semiconductor and silicon wafer production. STEAG has over 12 years' experience
in the RTP industry, with well over 400 RTP systems now in production worldwide.

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