For more information, contact:

Mike El-Hillow
Advanced Energy Industries, Inc.
970.407.6570
Dori Jones
MCA
650.968.8900
djones@mcapr.com


Advanced Energy Reports First Quarter 2004 Results

FORT COLLINS, Colo., April 15, 2004—Advanced Energy Industries, Inc. (Nasdaq: AEIS) today reported financial results for the first quarter ended March 31, 2004. Advanced Energy offers a comprehensive suite of process-centered solutions critical to the production of semiconductors, flat panel displays, data storage products, architectural glass and other advanced product applications.


For the 2004 first quarter, revenues were $104.5 million, up 86 percent from $56.2 million for the first quarter of 2003, and up 40 percent compared to revenues of $74.7 million for the fourth quarter of 2003.

Net income for the first quarter of 2004 was $6.9 million or $0.21 per diluted share, compared to a net loss of $8.6 million in the first quarter of 2003, or $0.27 per share. This compares to the fourth quarter 2003 net loss of $2.4 million, or $0.08 per share. Net income for the first quarter of 2004 includes approximately $1.0 million in pretax gains resulting from the sale of certain marketable securities and the sale of the Company's thermal control business.

Doug Schatz, chairman and chief executive officer, said, "We experienced strong demand in all product groups, driven by continued momentum in the semiconductor capital equipment market and the market leading positions we have secured in high-growth semiconductor processing applications. This sales growth, coupled with the progress we've made to streamline our operating infrastructure, enabled us to achieve significant profitability in the first quarter. Our commitment to continued product innovation drives our ability to capture new opportunities and expand our market reach over a wide range of plasma-based processing applications.

"Our decision to move out of the thermal control business is part of our continued focus on core competencies. The wafer chiller line is based on highly differentiated technology, and we are not willing to devote the resources required to meaningfully promote and support these products given our target long-term operating model for sustainable profitability throughout industry cycles.

"Towards the end of the first quarter, we were seeing indications that order patterns are leveling out as the market absorbs the recent surge in capital equipment purchases. We anticipate second quarter revenue in the $107 million to $115 million range and an earnings per share range of $0.20 to $0.25. We continue to make progress in our transition to a more variable operating model, targeting sustainable, ongoing improvements to our incremental operating margin," said Mr. Schatz.

First Quarter Conference Call

Management will host a conference call today, Thursday, April 15, 2004 at 5:00 pm Eastern time to discuss Advanced Energy's financial results. You may access this conference call by dialing 888-713-4717. International callers may access the call by dialing 706-679-7720. For a replay of this teleconference, please call 706-645-9291, and enter the pass code 6231765. The replay will be available through Thursday, April 22, 2004. There will also be a webcast available at www.advanced-energy.com .

About Advanced Energy

Advanced Energy is a global leader in the development and support of technologies critical to high-technology manufacturing processes used in the production of semiconductors, flat panel displays, data storage products, compact discs, digital video discs, architectural glass, and other advanced product applications.

Leveraging a diverse product portfolio and technology leadership, Advanced Energy creates solutions that maximize process impact, improve productivity and lower the cost of ownership for its customers. This portfolio includes a comprehensive line of technology solutions in power, flow, thermal management, and plasma and ion beam sources for original equipment manufacturers (OEMs) and end-users around the world.
     CONDENSED CONSOLIDATED INCOME STATEMENTS (UNAUDITED)
(in thousands except per share data)

Quarter Ended March 31,
2004 2003

Sales $104,487 $56,158
Cost of sales 66,073 38,208
Gross profit 38,414 17,950

Operating expenses:
Research and development 13,410 13,367
Sales and marketing 8,037 8,330
General and administrative 5,767 4,529
Amortization of intangible
assets 1,170 1,100
Restructuring charges 220 1,509
Total operating expenses 28,604 28,835

Income (loss) from operations 9,810 (10,885)

Other (expense) income, net (1,155) (2,750)
Income (loss) before income taxes 8,655 (13,635)
(Provision) Benefit for income taxes (1,731) 5,045
Net Income (loss) $6,924 $(8,590)

Basic net income (loss) per share: $0.21 $(0.27)

Diluted net income (loss) per share: $0.21 $(0.27)

Basic weighted-average common shares
outstanding 32,581 32,159
Diluted weighted-average common
shares outstanding 33,593 32,159



CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands)

March 31, December 31,
2004 2003

ASSETS

Current Assets:
Cash and cash equivalents $43,996 $41,522
Marketable securities 84,045 93,691
Accounts receivable 79,013 61,927
Income tax receivable 465 151
Inventories 72,148 65,703
Other current assets 3,827 5,486
Total current assets 283,494 268,480

Property and equipment, net 45,273 44,725

Deposits and other 6,306 5,630
Goodwill and intangibles, net 86,529 88,943
Demonstration and customer service
equipment, net 4,266 3,934
Deferred debt issuance costs, net 2,765 3,019
Total assets $428,633 $414,731

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
Trade accounts payable $33,072 $23,066
Other current liabilities 26,046 28,216
Current portion of capital
leases and senior borrowings 8,239 8,582
Accrued interest payable on
convertible subordinated notes 1,810 2,460
Total current liabilities 69,167 62,324

Long-term Liabilities:
Capital leases and senior
borrowings 4,935 6,168
Deferred income tax liability,
net 4,787 4,672
Convertible subordinated notes
payable 187,718 187,718
Other long-term liabilities 2,095 2,015
Total long-term liabilities 199,535 200,573

Total liabilities 268,702 262,897

Stockholders' equity 159,931 151,834
Total liabilities and stockholders'
equity $428,633 $414,731



CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)

Three Months Ended March 31,
2004 2003

NET CASH USED IN OPERATING ACTIVITIES $(4,344) $(4,579)

NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES 8,003 (5,460)

NET CASH USED IN FINANCING ACTIVITIES (1,588) (1,981)

EFFECT OF CURRENCY TRANSLATION ON
CASH 403 134
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 2,474 (11,886)
CASH AND EQUIVALENTS, beginning of
period 41,522 70,188
CASH AND EQUIVALENTS, end of period $43,996 $58,302

Advanced Energy operates in regional centers in North America, Asia and Europe and offers global sales and support through direct offices, representatives and distributors. Founded in 1981, Advanced Energy is a publicly held company traded on the Nasdaq National Market under the symbol AEIS. For more information, please visit our corporate website: www.advanced-energy.com.

Safe Harbor Statement

This press release contains certain forward-looking statements, including the company's expectations with respect to Advanced Energy's financial results for the second quarter of 2004. Forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to: the volatility and cyclicality of the semiconductor and semiconductor capital equipment industries, Advanced Energy's ongoing ability to develop new products in a highly competitive industry characterized by increasingly rapid technological changes, Advanced Energy's ability to successfully integrate acquired companies' operations, and other risks described in Advanced Energy's Form 10-K, Forms 10-Q and other reports and statements, as filed with the Securities and Exchange Commission. These reports and statements are available on the SEC's website at www.sec.gov . Copies may also be obtained from Advanced Energy's website at www.advanced-energy.com or contacting Advanced Energy's investor relations at 970-221-4670. The company assumes no obligation to update the information in this press release.