Puma continued, "In light of our confidentiality agreement with Sumitomo Heavy Industries (SHI) and TPG Capital, the Company will not comment on discussions with SHI. The Company does not plan to hold a quarterly earnings call this quarter."

Second Quarter Detail

Shipments and Margins

Shipments for the second quarter, including aftermarket business, before provision for deferred revenue totaled $67.9 million. Geographically, Axcelis' systems shipments were to: Asia, 46%; North America, 21%; and Europe, 33%. The ion implantation business accounted for 93% of total systems shipments in the second quarter. Gross margin for the second quarter was 35.2%.

Orders and Backlog

Orders received for the second quarter (new systems bookings and aftermarket) totaled $62.6 million. New systems bookings, excluding aftermarket, amounted to $24.3 million. Backlog plus deferred systems revenue at quarter end was $33.0 million. Backlog consists of systems orders (aftermarket orders are excluded) that are generally scheduled to ship within six months.

SEN Corporation, an SHI and Axcelis Company ("SEN")

Axcelis owns 50% of SEN, a Japanese company that is licensed by Axcelis to manufacture and sell certain implant products in Japan. SEN's revenue for the second quarter totaled $48.6 million. Revenues in Japan are also challenged by weak market conditions.

Business Outlook

Axcelis' financial outlook for the third quarter of 2008 includes revenues in the range of $47 million to $57 million. The Company also forecasts a third quarter loss per share in the range of $0.21 to $0.25. Axcelis assumes no responsibility to update guidance. Axcelis will only confirm or update guidance via a press release.

Safe Harbor Statement

This document contains forward-looking statements under the SEC safe harbor provisions. These statements, which include our guidance for future financial performance, are based on management's current expectations and should be viewed with caution. They are subject to various risks and uncertainties, many of which are outside the control of the Company, including the timing of orders and shipments, the conversion of orders to revenue in any particular quarter, or at all, our ability to implement successfully our profit plans, the continuing demand for semiconductor equipment, relative market growth, continuity of business relationships with and purchases by major customers, competitive pressure on sales and pricing, increases in material and other production costs that cannot be recouped in product pricing and global economic, political and financial conditions. These risks and other risk factors relating to Axcelis are described more fully in the most recent Form 10-K filed by Axcelis and in other documents filed from time to time with the Securities and Exchange Commission.

About Axcelis Technologies, Inc.

Axcelis Technologies, Inc., headquartered in Beverly, Massachusetts, provides innovative, high-productivity solutions for the semiconductor industry. Axcelis is dedicated to developing enabling process applications through the design, manufacture and complete life cycle support of ion implantation and cleaning systems. Axcelis also licenses its 50% owned joint venture, SEN Corporation, an SHI and Axcelis Company, to manufacture and sell certain implant products in Japan. The company's Internet address is: www.axcelis.com.

                      Axcelis Technologies, Inc.
                 Consolidated Statements of Operations
                In thousands, except per share amounts
                              (Unaudited)

                             Three Months ended     Six Months ended
                                  June 30,             June 30,
                             -------------------   -------------------
                               2008       2007       2008        2007
                             --------   --------   --------   --------
 Revenue                     $ 76,889   $110,073   $161,783   $207,599

 Cost of revenue               49,799     66,483    105,477    122,759

 Gross profit                  27,090     43,590     56,306     84,840

 Operating expenses
  Research and development     16,954     17,598     33,807     35,826
  Sales and marketing          12,475     13,146     24,380     26,084
  General and administrative   10,878     10,194     20,692     20,670
  Amortization of intangible
   assets                         656        656      1,312      1,312
  Restructuring charges         3,017         --      3,068         --
                             --------   --------   --------   --------
                               43,980     41,594     83,259     83,892
                             --------   --------   --------   --------
 Income (loss) from
  operations                  (16,890)     1,996    (26,953)       948

 Other income (expense)
  Equity income (loss) of SEN    (133)     1,905       (132)     6,573
  Interest income                 391      1,146      1,081      2,600
  Interest expense             (1,680)    (1,566)    (3,281)    (3,235)
  Other-net                      (767)       275       (449)       251
                             --------   --------   --------   --------
                               (2,189)     1,760     (2,781)     6,189
                             --------   --------   --------   --------
 Income (loss) before
  income taxes                (19,079)     3,756    (29,734)     7,137

 Income taxes (credits)           318       (988)       744       (280)
                             --------   --------   --------   --------
 Net income (loss)           $(19,397)  $  4,744   $(30,478)  $  7,417
                             ========   ========   ========   ========
 Net income (loss) per
  share
    Basic                    $  (0.19)  $   0.05   $  (0.30)  $   0.07
    Diluted                     (0.19)      0.05      (0.30)      0.07

 Shares used in computing
  net income (loss) per
  share
    Basic                     102,450    101,609    102,449    101,551
    Diluted                   102,450    102,503    102,449    102,463


                      Axcelis Technologies, Inc.
                     Consolidated Balance Sheets
                            In thousands
                             (Unaudited)
                                               June 30,   December 31,
                                                 2008         2007
                                              ---------    ---------
 Assets

 Current assets
  Cash and cash equivalents                   $  59,651    $  83,877
  Restricted cash                                14,821       17,018
  Accounts receivable, net                       51,233       76,067
  Inventories, net                              178,855      169,278
  Prepaid expenses and other current assets      17,551       32,442
                                              ---------    ---------
 Total current assets                           322,111      378,682

 Property, plant and equipment, net              66,352       68,101
 Investment in SEN                              140,044      132,911
 Goodwill                                        42,115       42,115
 Intangible assets                                9,613       10,925
 Other assets                                    35,313       37,195
                                              ---------    ---------
                                              $ 615,548    $ 669,929
                                              =========    =========
 Liabilities and stockholders' equity

 Current liabilities
  Accounts payable                            $  15,636    $  27,054
  Accrued compensation                           16,426       17,003
  Warranty                                        3,931        5,011
  Income taxes                                      757          531
  Deferred revenue                               14,518       35,827
  Other current liabilities                       6,579        8,577
  Current portion of convertible
   subordinated debt                             81,534           --
                                              ---------    ---------
 Total current liabilities                      139,381       94,003

 Convertible subordinated debt                       --       79,923
 Long-term deferred revenue                       3,291        4,704
 Other long-term liabilities                      5,290        5,293

 Stockholders' equity
  Preferred Stock                                    --           --
  Common stock                                      103          103
  Additional paid-in capital                    481,596      478,726
  Treasury stock                                 (1,218)      (1,218)
  Accumulated deficit                           (32,293)      (1,815)
  Accumulated other comprehensive income         19,398       10,210
                                              ---------    ---------
                                                467,586      486,006
                                              ---------    ---------
                                              $ 615,548    $ 669,929
                                              =========    =========

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SOURCE: Axcelis Technologies, Inc.

Axcelis Technologies, Inc.
          Maureen Hart
            +1 (978) 787 4266
            Fax: +1 (978) 787 4275
            maureen.hart@axcelis.com
          Investor Contact:
          Stephen Bassett
            +1 (978) 787 4000 
            Fax: +1 (978) 787 9133
            investor.relations@axcelis.com

         Loomis Group
         Heather Smith
         +1 (617) 309 8005
         Fax: +1 (617) 638 0033
         smithh@loomisgroup.com