For more information, contact:

Mike El-Hillow
Advanced Energy Industries, Inc.
970.407.6570
mike.el-hillow@aei.com
Cathy Kawakami,
Advanced Energy Industries, Inc.
970.407.6732
cathy.kawakami@aei.com


Advanced Energy Announces Redemption of 5% Convertible Subordinated Notes

FORT COLLINS, Colo., Aug. 26—Advanced Energy Industries, Inc. (Nasdaq: AEIS) announced today that it will redeem all of its outstanding 5% Convertible Subordinated Notes due September 1, 2006. The redemption date will be September 28, 2005. The Company sent notice of redemption on its 5 1/4% Convertible Subordinated Notes due 2006, on August 17, 2005.


(Logo: http://www.newscom.com/cgi-bin/prnh/20030825/AEISLOGO)

The notes shall be redeemed at a price of 101% of the principal amount, together with accrued and unpaid interest to the redemption date. On the redemption date, the redemption price and the interest, if any, will become due and payable upon each of the notes. Interest shall cease to accrue on the notes from and after the Redemption Date. The notes may be converted into common stock of the Company at any time prior to 5:00 p.m. on September 27, 2005, which is the close of business on the business day immediately preceding the Redemption Date. The rate at which the notes may be converted into common stock is 33.5289 shares of common stock for each $1,000 principal amount of the notes, or approximately $29.83 per share. A notice of redemption containing information required by the terms of the indenture governing the notes will be mailed to the shareholders. The address of the paying agent for purposes of surrendering notes in connection with the redemption is:

     By Mail:                             By Registered or Certified Mail
U.S. Bank National Association or Overnight Courier to:
West Side Flats Operations Center U.S. Bank National Association
60 Livingston Ave. West Side Flats Operations Center
St. Paul, MN 55107 60 Livingston Ave.
Attention: Specialized Finance St. Paul, MN 55107
Attention: Specialized Finance
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.

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.