Reports Results for Fiscal Third Quarter

CHELMSFORD, Mass., July 23, 2003 -- Brooks Automation, Inc. (Nasdaq: BRKS), which delivers total automation for semiconductor manufacturing and other industries, today announced results for the fiscal third quarter ended June 30, 2003.

Revenues for the third quarter were $84.0 million, a 9.6 percent sequential decline from the preceding quarter revenues of $92.9 million. Bookings for the quarter were $73.4 million, a sequential decline of 14.4 percent from the preceding quarter bookings of $85.7 million. The company had estimated in its second quarter earnings report on April, 24, 2003 that in the third quarter both revenues and bookings would decline in the range of 10 to 15 percent from second quarter results.

The net loss for the third quarter on a GAAP ("Generally Accepted Accounting Principles") basis was $36.4 million, or $0.99 per share, compared to a net loss on the same basis of $28.8 million, or $0.79 per share in the immediately preceding quarter. The GAAP loss included a restructuring charge of $20.7 million consisting of previously anticipated items of $7.0 million for severance and $3.2 million for divestiture of the company's Swiss subsidiary as well as an additional charge of $10.5 million taken after re- evaluation of lease obligations.

The net loss for the third quarter on a "pro forma" basis, defined as net loss before amortization of acquired intangible assets and other acquisition and disposition related charges, net of income taxes, was $10.9 million or $0.29 per share, compared to the preceding quarter pro forma loss of $12.7 million or $0.34 per share, and better than the guidance of $0.35 to $0.40 loss per share. It has been the practice of Brooks and of many other companies as well to report pro forma financial results since management believes that presenting the operating results before taking into account such charges provides useful information to aid in understanding ongoing, recurring operations. As in previous earnings reports, a reconciliation of GAAP to pro forma losses for the quarter is included in the attached exhibits.

The net cash balance at the end of the third quarter was $209.6 million, including cash, cash equivalents, short-term and long-term marketable securities, compared to a balance of $212.9 million in the immediately preceding quarter.

Robert J. Therrien, chairman and chief executive officer of Brooks Automation, said: "The company continued to make good progress during the June quarter in achieving near term objectives for restructuring and managing the cash flow. The pro forma operating expenses for the third quarter decreased to $37.0 million, a $4.2 million reduction from the preceding quarter, as we again realized the benefits of our cost reduction efforts. The decline in the company's cash for the quarter was only $3 million despite significant cash expenditures of $11 million related to restructuring and $4 million for a semi-annual interest payment. We were able to achieve this by continuing to focus on reducing our working capital. Since finishing the December 2002 quarter with a cash balance of $215 million, the decline in cash for the March and June quarters combined was less than $6 million. We will complete essentially all the workforce reductions as well as the facilities consolidations by the end of the September quarter, leaving us with fewer than 2,000 employees worldwide and 3 main manufacturing sites -- down from 3,300 employees and 14 sites one year ago -- as we drive towards our goal of reaching operating profitability by the end of the calendar year. We continue to leverage our world class manufacturing capability as a competitive advantage for the company. As a result, Brooks has successfully positioned itself as a leading provider of systems and custom manufacturing for its OEM customers, who are increasingly outsourcing their automation."

Mr. Therrien reviewed some of the highlights of the third quarter: "Brooks introduced a number of new and enhanced products at SEMICON West earlier this month, including the OneFab(TM) AMHS (automated material handling system). We believe this new system is the most advanced fourth generation AMHS available today and when combined with industry-leading factory management and logistics software from Brooks, provides the most complete and robust factory automation solution for 300mm semiconductor manufacturers. The introduction of OneFab significantly improves Brooks' competitive position in several AMHS opportunities in the second half of this year. We hope to sustain the momentum from the excitement and interest generated by the recent launches of products such as the OneFab AMHS, the new iReticles(TM) software for managing critical reticle data, the enhanced equipment front end module FabExpress(TM) with high throughput 5-axis robot and industry-leading FixLoad(TM) loadport, the Particle Detection System for 100 percent inspection of reticles, the CleanFlow(TM) fan filter unit for mini-environments and a number of other offerings. The new flow of products and technology is essential for the company to maintain its number one position in semiconductor automation, as most recently reported by Dataquest in April 2003."

Mr. Therrien commented on Brooks' business environment. "Even though visibility is still limited, we have reason to believe that bookings have bottomed in the June quarter and are likely to increase by as much as 10 to 15 percent in the next quarter as a number of semiconductor fabs begin investing in capital equipment. We expect revenues for the September quarter to be down 3 to 5 percent sequentially from the June quarter based on the lower bookings number in the preceding quarter. The GAAP loss for the September quarter is estimated to be in the range of $0.45 to $0.50 per share and pro forma loss to be in a range of $0.24 to $0.29 per share. While there are signs of a recovery for the semiconductor device sector in the second half of the year, capital equipment spending will likely lag the chip recovery and therefore we remain conservative in our planning and are staying focused on improving the operating leverage of the company and managing our cash for the next quarter."

Q3 Fiscal 2003 Highlights

-- Announced strategic alliance with Angstron Systems, Inc., a Santa Clara based start up company, to provide Brooks' vacuum tool system, the Gemini Express (GX) cluster tool platform, for Angstron's advanced ALD (atomic layer deposition) tool, the ATOMOS(TM).

-- Announced Philips Advanced Metrology Systems, Inc., the metrology business unit of Royal Philips Electronics has purchased Brooks' atmospheric tool system, the integrated EFEM (equipment front-end module) and mini-environment system for Philips' advanced copper metrology tool, the Series 3300.

-- Selected by a major Japanese semiconductor manufacturer to provide the FACTORYworks(TM) manufacturing execution system for its fab.

-- Captured 12 new design-in wins for the quarter, of which 6 were for systems.

-- Participated in SEMICON West from July 14-16, 2003, hosting a presentation for investors during the show on July 15. Introduced a number of new and enhanced products, highlighted by the unique OneFab(TM) AMHS, the industry's only fourth generation automated material handling system for 300mm semiconductor factory automation.

-- Hosted the annual Analyst Day for financial analysts and shareholders on May 21, 2003, in Chelmsford, Massachusetts.

Conference Call

Brooks Automation will host a conference call on Thursday, July 24 at 9:00 AM Eastern to review its fiscal third-quarter results. On the call, management will discuss the information contained in this announcement and answer related questions.

Date: Thursday, July 24, 2003

Time: 9:00 a.m. Eastern, 8:00 a.m. Central, 7:00 a.m. Mountain, 6:00 a.m. Pacific

Dial In #: (719) 457-2646

Passcode: 257426

Replay: (719) 457-0820 (beginning @ 2:00 p.m. Thursday, July 24, 2003) available 7 days

Passcode: 257426

This call will also be Webcast live, and can be accessed through the Brooks investor relations web page at http://investor.brooks.com. Click on the link, Webcasts, and then the link for "Brooks Automation Fiscal 2003 Third Quarter Earnings Webcast".

An archive of this Webcast will be made available following the conference call, and can be accessed for at least the next twelve months on the section for Webcasts at http://investor.brooks.com under the title "Brooks Automation Fiscal 2003 Third Quarter Earnings Webcast".

Pro Forma Results

In addition to disclosing results that are determined in accordance with Generally Accepted Accounting Principles (GAAP), Brooks also discloses pro forma, or "non-GAAP", results of operations. These pro forma results are comprised of net income or net loss before the amortization of acquired intangible assets and other acquisition and disposition related charges, net of income taxes. Pro forma results are provided as a complement to the results provided in accordance with GAAP on the basis of management's belief that presenting the Company's operating results before taking such charges into account provides useful information to aid in understanding ongoing, recurring operations.

About Brooks Automation, Inc.

Brooks Automation (Nasdaq: BRKS) is a leading worldwide provider of automation solutions to the global semiconductor and related industries. The company's factory and tool automation hardware, software and professional services can manage every wafer, reticle and data movement in the fab, helping semiconductor chip manufacturers improve throughput and yield while reducing both cost and time to market. Brooks products and services are used in virtually every fab in the world. For more information, visit

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:

Some statements in this release are forward-looking statements made under Section 21E of the Securities Exchange Act of 1934. These statements are neither promises nor guarantees but involve risks and uncertainties, both known and unknown, that could cause Brooks' financial results to differ materially from our expectations. They are based on the facts known to management at the time they are made. These forward-looking statements include statements regarding our revenue and profit and loss expectations, future level and sufficiency of our cash position, our future business strategy and market opportunities, improvements in our business, our restructuring and cost reduction activities, our integration of acquired businesses, demand for our products, bookings, backlog and design-ins and the general economic outlook. Factors that could cause results to differ from our expectations include the following: our dependence on the cyclical semiconductor industry; the possibility of further or future downturns in market demand for electronics (including especially the market for semiconductor products); further downturn in the economy of the United States and other countries brought about by the war in the Iraq or political tensions arising between Western nations and North Korea; the highly competitive nature and rapid technological change that characterizes the industries in which we compete; decisions by customers to cancel or defer orders that previously had been accepted; the fact that certain of the company's orders are non-binding; the timing and effectiveness of restructuring, cost-cutting and expense control measures, including activities such as facility consolidations and staffing reductions; the possibility of intense price competition and the possible resulting need to lower our prices to our customers and thereby possibly our revenue; the effect of being required to account for stock options as an expense; our ability to manage the effects of past or future acquisitions or divestitures, including the need to integrate acquired businesses successfully; our ability to protect our intellectual property; the possibility that the value of certain acquired assets or businesses may have to be written down in light of prevailing market conditions; the impact of the outbreak of SARS in various parts of the world; and other factors and other risks that we have described in our filings with the Securities and Exchange Commission, including but not limited to Brooks' Annual Report on Form 10-K and our quarterly reports on Form 10-Q. As a result there can be no assurance that our future results will not be materially different from those projected. Brooks expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based. Brooks undertakes no obligation to update the information contained in this press release.

All trademarks contained herein are the property of their respective owners.