Advanced Energy® to Provide Complete Flow Subsystem Package to Leading Taiwan LCD Manufacturer for New, Generation-7.5 FPD FAB

Fab-wide win includes multiple models from Aera® flow product portfolio

FORT COLLINS, Colo., Oct. 18, 2006 - Advanced Energy Industries, Inc. (NasdaqGM: AEIS) today announced it has won the entire mass flow subsystem business for the new, generation-7.5 flat panel display (FPD) fab from one of Taiwan's leading manufacturers of thin-film transistor liquid crystal display (TFT-LCD) panels. This fab-wide design win includes AE®'s Aera® Transformer(TM) mass flow controllers (MFCs), mass flow meters (MFMs), product training, installation support services, as well as Central Monitoring Systems (CMSs) for a complete products-and-services package. AE's flow subsystems will be utilized for chemical vapor deposition (CVD) TFT-LCD panel applications in the customer's newest, generation-7.5 fab, which has already begun production.

Industry analysts and market researchers have noted the escalating shift to TFT-LCDs. Due to its greater clarity, slim size, light weight, low energy consumption and low radiation output, TFT-LCD is rapidly becoming the mainstream display technology. This AE customer's TFT-LCD panels are integrated into a wide range of electronic devices, including notebook computers, televisions, digital cameras as well as other applications.

"We are delighted to work with this leading company in the high-growth FPD arena," noted Dr. Hans Betz, president and CEO of AE. "While we have been active in the FPD market for some time now - primarily, enabling generation-5 and -6 fabs-this order reinforces the extendibility of our products to address the growing 7.5 display generation. Importantly, generation 7.5 equipment increases factory throughput while it enables more efficient production of larger-screen panels."

About Advanced Energy
Advanced Energy develops innovative power and control technologies that drive high-growth, plasma thin-film and nanotech manufacturing processes worldwide, including semiconductors, flat panel displays, data storage products, solar cells, architectural glass, and other advanced product applications.

AE's product portfolio includes precise, flexible power systems; reliable gas and liquid flow-management systems; accurate thermal instruments; and global support services. Leveraging this focused product portfolio and technology leadership, AE creates solutions that maximize process impact, improve productivity, and lower cost of ownership for its customers, including original equipment manufacturers (OEMs) and end users around the world.

AE 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, AE is a publicly held company traded on the Nasdaq Global Market under the symbol AEIS.

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Marna Shillman
Global Marketing Communications Director
Advanced Energy Industries, Inc.

Angie Kellen
Account Director

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