SOURCE: Mattson Technology, Inc.

Mattson Technology, Inc.

Mattson Technology, Inc.

May 11, 2011 16:30 ET

Mattson Technology, Inc. and Mesocoat, Inc. Announce Exclusive Supply Agreement

FREMONT, CA and EUCLID, OH--(Marketwire - May 11, 2011) - Mattson Technology, Inc. (NASDAQ: MTSN) and MesoCoat, Inc., a subsidiary of Abakan, Inc., today announced that the two companies have agreed to an Exclusive Supply Agreement that grants MesoCoat access to Mattson's ultra-high-intensity Vortek® arc lamp system. MesoCoat will use the lamps, which generate an extremely high intensity of focused light, in the production of its high-performance nanocomposite cladding solutions for an estimated $3.8 billion1 worldwide metal cladding market.

"The use of Mattson's leading arc lamp technology is an important component in differentiating MesoCoat's proprietary and patented processes from competitors," said MesoCoat CEO Andy Sherman. "Securing the commitment and support of Mattson Technology's engineering and design team will speed the commercial introduction of our CermaClad™ high performance claddings."

The multi-year agreement contemplates that MesoCoat will annually purchase an escalating minimum number of Vortek arc lamps. The aggregate value of the purchases has the potential to exceed tens of millions of dollars over the term of the agreement, and includes a $2 million exclusivity fee. The agreement guarantees MesoCoat supply, technical and design support, and delivery schedules for the Vortek arc lamps for its cladding equipment and operations.

"We are extremely pleased to be working with MesoCoat on this new, innovative coating solution, which represents a paradigm shift that brings high speed, performance and economy to such large critical markets," said David Dutton, CEO of Mattson Technology. "Our Vortek arc lamp is one of the most powerful light sources in the world that has shown potential to enable greater efficiency in many emerging thermal process applications in the clean energy field. Our partnership with MesoCoat opens up a new opportunity in the energy market, which extends our business beyond our existing semiconductor equipment industry."

The Mattson Technology Vortek arc lamp integrated with MesoCoat's award-winning CermaClad process will allow continuous coating and cladding of layers of corrosion- and wear-resistant materials 20 to 30 centimeters (cm) wide, compared to widths of approximately 0.5 cm for lasers used in competing weld or laser cladding processes. This high-speed cladding process that is up to 100 times faster than current methods enables better metallurgical properties even at lower coating thicknesses. The speed of this technology ensures that the cladding process can now match the line speed of steel mills, dramatically reducing lead times by 75-80%2. MesoCoat estimates that this technology will enable the cladding market to double over the next three years to more than $7 billion.

1 MesoCoat Estimate
2 MesoCoat Estimate

About MesoCoat, Inc.:
MesoCoat is a venture-backed nanotechnology materials science company in metal protection and repair utilizing their revolutionary "long life" coating and "high speed" cladding technologies. Through Partnerships with the Departments of Defense and Energy, and leading Oil and Gas companies, MesoCoat has developed high strength, high toughness ceramic-metallic materials and high speed fusion cladding processes providing unparalleled wear and corrosion resistance; and has verified performance, productivity, and cost benefits with industry leaders in Oil & Gas, Aerospace, Energy Generation, and Maritime industries. MesoCoat is now commercializing several of their products and services that are a direct replacement for hard chrome plating, as well as weld cladding processes to address the needs of both Original Equipment Manufacturers (OEM) and Maintenance and Repair Organizations (MRO).

About Mattson Technology, Inc.:
Mattson Technology, Inc. designs, manufactures and markets semiconductor wafer processing equipment used in the fabrication of integrated circuits. The company is a leading supplier of plasma and rapid thermal processing equipment to the global semiconductor industry, and operates in three primary product sectors: dry strip, rapid thermal processing (RTP) and etch. Through manufacturing and design innovation, Mattson Technology produces technologically advanced systems that provide productive and cost-effective solutions for customers fabricating current- and next-generation semiconductor devices. The company serves foundries, and memory and logic integrated device manufacturers in the United States, Europe, China, Japan, Korea, Singapore, Taiwan and other Asian countries.

Mattson Technology "Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking statements, including statements relating to the potential uses of the Vortek arc lamp system, the potential benefits of the supply agreement to both companies, the potential volume and value of sales and availability of product under the agreement, the size and nature of the potential new markets for the Vortek arc lamp system and other general market statements. These forward-looking statements address matters that are subject to a number of risks and uncertainties that can cause actual results to differ materially. Such risks and uncertainties include, but are not limited to: unexpected changes in the business relationship between the companies or in the terms and conditions of their supply agreement; changes in MesoCoat's business and demand for its products; changes in the broader markets for the Company's products; the timing of significant customer orders for the Company's products; customer acceptance of delivered products and the Company's ability to collect amounts due upon shipment and upon acceptance; the Company's ability to timely manufacture, deliver and support ordered products; the Company's ability to bring new products to market and to gain market share with such products; customer rate of adoption of new technologies; risks inherent in the development of complex technology; the timing and competitiveness of new product releases by the Company's competitors; the Company's ability to align its cost structure with market conditions; and other risks and uncertainties described in the Company's Forms 10-K, 10-Q and other filings with the Securities and Exchange Commission. The Company assumes no obligation to update the information provided in this news release.

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