May 2, 2008


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

Dear Ms. Puma:

We believe that the results of yesterday's Annual Meeting of Stockholders
represent a mandate to the Axcelis Board of Directors.  Although multiple
proxy services recommended withholding votes for the nominated directors,
the failure of those directors to receive a majority of the shareholder
vote in support of their re-election represents a clear message from
shareholders of their discontent with the failure of the Board to fully
engage SHI in negotiations that could ultimately lead to a transaction
that fairly values our company.

As communicated previously, we are confident that if Axcelis and SHI were
to enter into good-faith negotiations a fair value for our company could
be achieved.  This fair value should be based on both current business
prospects and realistic expectations for the future.  Clearly, any
negotiations would require adequate confidentiality but limiting
shareholder communication for an extended period of time would remove a
catalyst for achieving a value creating transaction and withhold from your
shareholders vital information about the company's direction and prospects.

Rather than battling your shareholder base, we encourage you and the Board
to embrace the steps necessary to drive shareholder value via a transaction
with SHI.

Sincerely,

STERLING CAPTIAL MANAGEMENT LLC



Brian R. Walton, CFA
Managing Director



cc: Board of Directors