March 28, 2008


Ms. Mary Puma
Chairman and CEO
Axcelis Technologies, Inc.
108 Cherry Hill Drive
Beverly, MA 01915-1053


Dear Ms Puma:

Although SHI recently raised its proposed acquisition price by 15% to $6.00
per share, it would appear that we are no closer to achieving an open
dialogue between Axcelis and SHI.  As we have communicated previously, we
firmly believe that full engagement between the two parties would ultimately
lead to a transaction which fairly values Axcelis.

Without questioning the Board's sincerity or motivation to create shareholder
value, we strongly differ with several conclusions and strategies which seem
to be influencing events.

     o  Sterling has previously communicated our perspective on fair value
for Axcelis at $7.00 to $7.50 per share.  This assessment was reached after
extensive due diligence and utilized all available public information.
Further, it assumes that Axcelis is able to achieve market share gains which
would lead to improved financial results.  We are concerned that the Board
and its advisors are utilizing overly optimistic assumptions regarding
Optima's ultimate market share gains and consequently embracing an intrinsic
value which is not achievable.

     o  We strongly disagree that the potential acquisition of SEN by
Axcelis is in the shareholders best interest.  Although there are likely
measurable synergies which would exist under a single company structure,
current operating and financial challenges faced by Axcelis make this
strategy both impractical and highly risky.

     o  Several issues have developed over the last few years which have
strained the relationship between Axcelis and SHI.  Nonetheless, we believe
that SHI represents the most logical acquirer of Axcelis from both a
strategic and financial perspective.  Clearly, the joint ownership of SEN
and the financial backing of TPG are additive in achieving a transaction.

     o  The Board has chosen not to provide shareholders any additional
customer data or financial projections which would support a recalibrating
of fair value for Axcelis.  We are concerned that even if appropriate
confidentiality agreements between SHI and Axcelis are signed limited
information sharing will impede the negotiations.

Unfortunately, because of these significant differences, we find it difficult
to support the three candidates who have been nominated for re-election to
the Axcelis Board of Directors.  Sterling continues to own approximately 12%
of outstanding Axcelis shares and it is our current intent to vote these
shares 'withheld' in the upcoming election.  As always, we would be open to
further discussions with you and other Board members to review these points
of contention.  Hopefully, prior to the May 1st shareholder meeting there
will be progress in your discussions with SHI such that these issues may be
rendered moot.


Sincerely,



Brian R Walton, CFA
Managing Director
Sterling Capital Management