signature=265dc38421eeba29e5d1ad32e1a8f735,July 29, 2009 8K DOC

July 22, 2009 8K Exhibit 99.1

            

News ReleaseMattson Technology Contact

Investor & Media Contact

Andy Moring

Laura Guerrant-Oiye

Mattson Technology, Inc.

Guerrant Associates

tel 510-657-5900

tel 808-882-1467

fax 510-492-5963

lguerrant@guerrantir.com

andy.moring@mattson.comFOR IMMEDIATE RELEASE

MATTSON TECHNOLOGY, INC. REPORTS IMPROVED

SECOND QUARTER 2009 RESULTSFREMONT, Calif. - July 29, 2009 - Mattson

Technology, Inc. (Nasdaq: MTSN), a leading supplier of advanced process equipment used to manufacture semiconductors, today

announced results for its second quarter of 2009 (ended June 28, 2009).

Second Quarter 2009 Financial Results

Net sales for the second quarter were $8.1 million, compared to $5.6 million in the first quarter, and $41.8

million in the second quarter of 2008. Gross margin for the second quarter was negative $1.6 million, compared to negative $7.9 million

in the first quarter, and $18.4 million in the second quarter of 2008. The negative gross margin in both the first and second quarters of

2009 were attributable to manufacturing under-absorption at the current low revenue volumes, and additional reserves for excess

inventory and vendor commitments of $3.8 million in the second quarter and $9.3 million for the first quarter.

Operating expenses for the second quarter were $18.2

million, compared to $20.4 million in the first quarter and $25.7 million for the second quarter of 2008. Operating expenses for the

second quarter included a $0.1 million release in restructuring reserves. Operating expenses for the first quarter included $0.9 million

related to restructuring charges and operating expenses for the second quarter of 2008 included $0.7 million related to restructuring

charges.Net loss for the second quarter was $19.9 million, or $0.40

loss per share, compared with a net loss of $27.2 million, or $0.55 loss per share, for the first quarter and net loss of $6.8 million, or

$0.14 loss per share, for the second quarter of 2008.Cash, cash equivalents, short-term investments and

restricted cash at the end of the second quarter were $79.8 million, compared to $91.6 million at the end of the first quarter and $103.4

million at the end of the fourth quarter of 2008. Cash decreased by $11.8 million in each of the first and second quarters, compared to

a decrease of $14.3 million in the fourth quarter of 2008.

David L. Dutton, Mattson Technology's president and chief executive officer, noted, "We continue to see

an improvement in business conditions in the semiconductor capital equipment sector and the overall semiconductor industry, although

we are still in the early stages of industry recovery. Utilization rates and semiconductor demand are clearly on the rise, and specific to

Mattson Technology, we are encouraged by our new product traction and sequential increase in revenues for the second quarter.

Customer activity continues to increase, especially involving technologies in our new product portfolio." Dutton added,

"However, capacity and expansion spending remain muted, with the timeline for more normal industry conditions and a

sustainable recovery yet to be determined. While the downward trend in the industry has ended, and we are seeing improved

conditions, the industry lacks clarity on the timing and roadmap of a sustained recovery."

The Company also announced incremental cost reduction initiatives, which will continue to reduce the cash loss

from operations and improve the operating leverage and efficiency of the

- More -

MATTSON REPORTS 2009 SECOND QUARTER RESULTS

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Company during the industry recovery. These additional cost

reduction initiatives will include reductions-in-force, streamlining of the management structure and extended furloughs in certain

regions. Mattson expects to record cash expenditures of $1.8 million primarily in the third quarter as a result of these initiatives.

"We maintain our focus on strict cost containment measures and continue to lower the Company's cost

structure, while preserving our investment in our etch technology," said Dutton. "Results for the second quarter improved

across the board, and reflect our strategic initiatives to advance etch, coupled with our strict financial discipline. Revenue increased

over 40 percent on a sequential basis, while operating expenses decreased quarter-on-quarter and declined 25 percent from a year

ago. Our cash position at the end of the second quarter was better than we had anticipated." Dutton concluded, "We intend

to insure the long-term viability of Mattson Technology and will exit this downturn with a substantially improved cost

structure."

Attached to this news release are preliminary unaudited condensed consolidated statements of operations and

balance sheets.Conference Call

On Wednesday, July 29, 2009, at 3:00 PM Pacific Time (6:00 PM Eastern Time), Mattson Technology will

hold a conference call to review the following topics: 2009 second quarter financial results, cost reduction initiatives, current business

conditions, the near-term business outlook and guidance for the third quarter of 2009. The conference call will be simultaneously

webcast at www.mattson.comunder the "Investors" section. In addition to the live webcast, a replay will be available to

the public on the Mattson Technology website for one week following the live broadcast.

To access the live conference call, please dial (719) 325-

4837.

Mattson will also webcast a slide presentation in conjunction with the conference call, which can also be

accessed at www.mattson.comunder the "Investors" section.

"Safe Harbor" Statement Under the Private

Securities Litigation Reform Act of 1995: This news release contains forward-looking statements regarding the Company's future

prospects and plans, including, but not limited to: our cost reduction plans, potential future earnings, cash flow, cash position and other

financial results, future customer demand and industry and economic conditions, and the market acceptance of Company products.

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: end-user demand for semiconductors; customer demand

for semiconductor manufacturing equipment; 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. Results for the current quarter are preliminary and subject to

adjustment. The Company assumes no obligation to update the information provided in this news release.About Mattson Technology, Inc.

Mattson Technology, Inc. designs, manufactures and markets semiconductor wafer processing equipment

used in the fabrication of integrated circuits. We are a leading supplier of plasma and rapid thermal processing equipment to the global

semiconductor industry. Through manufacturing and design innovation, we have produced technologically advanced systems that

MATTSON REPORTS 2009 SECOND QUARTER RESULTS

Page 3 of 5

provide productive and cost effective solutions for customers fabricating current- and next-generation semiconductor devices. For more

information, please contact Mattson Technology, Inc., 47131 Bayside Parkway, Fremont, CA, 94538. Telephone: (800)

MATTSON/(510) 657-5900. Internet: www.mattson.com.

MATTSON REPORTS 2009 FIRST QUARTER RESULTS

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MATTSON TECHNOLOGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except per share amounts)

Three Months Ended

Six Months Ended

June 28,

June 29,

June 28,

June 29,

2009

2008

2009

2008

Sales

Products

$ 7,532

$ 40,443

$ 12,231

$ 87,135

Services

536

1,347

1,409

3,310

Net sales

8,068

41,790

13,640

90,445

Cost of sales

Products

9,576

22,735

22,706

49,846

Services

101

610

458

1,320

Cost of sales

9,677

23,345

23,164

51,166

Gross margin

(1,609)

18,445

(9,524)

39,279

Operating expenses:

Research, development and engineering

6,810

9,215

13,460

17,061

Selling, general and administrative

11,505

15,592

24,359

32,367

Amortization of intangibles

-

128

-

256

Restructuring charges

(100)

748

818

748

Total operating expenses

18,215

25,683

38,637

50,432

Loss from operations

(19,824)

(7,238)

(48,161)

(11,153)

Interest and other income, net

182

906

1,454

739

Loss before income taxes

(19,642)

(6,332)

(46,707)

(10,414)

Provision for income taxes

254

422

416

556

Net loss

$ (19,896)

$ (6,754)

$ (47,123)

$ (10,970)

Net loss per share:

Basic and Diluted

$ (0.40)

$ (0.14)

$ (0.95)

$ (0.22)

Shares used in computing net loss per share:

Basic and Diluted

49,772

49,419

49,749

49,391

MATTSON REPORTS 2009 FIRST QUARTER RESULTS

Page 5 of 5MATTSON TECHNOLOGY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

June 28,

December 31,

2009

2008

(unaudited)

(1)

ASSETS

Current assets:

Cash, cash equivalents and short-term investments

$ 77,819

$ 103,387

Restricted cash

2,000

-

Accounts receivable, net

3,055

14,477

Advance billings

100

140

Inventories

35,175

48,410

Inventories - delivered systems

-

956

Prepaid expenses and other assets

5,319

5,765

Total current assets

123,468

173,135

Property and equipment, net

25,357

27,144

Other assets

7,454

7,932

Total assets

$ 156,279

$ 208,211

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$ 6,148

$ 7,205

Accrued liabilities

16,725

21,241

Deferred revenue

2,255

4,198

Total current liabilities

25,128

32,644

Income taxes payable, non-current

13,591

13,467

Other liabilities

5,719

5,264

Total liabilities

44,438

51,375

Stockholders' equity:

Common stock

54

54

Additional paid-in capital

630,533

628,632

Accumulated other comprehensive income

20,482

20,255

Treasury stock

(37,986)

(37,986)

Accumulated deficit

(501,242)

(454,119)

Total stockholders' equity

111,841

156,836

Total liabilities and stockholders' equity

$ 156,279

$ 208,211

(1) Derived from audited financial statements