Exhibit 99.1

[GRAPHIC REMOVED HERE]

NEWS RELEASE

Contact:

Ludger Viefhues

Chief Financial Officer

Mattson Technology, Inc.

(510) 492-5954

MATTSON TECHNOLOGY, INC. ANNOUNCES FOURTH QUARTER AND YEAR

END 2003 FINANCIAL RESULTS

FREMONT, Calif., January 28, 2004 — Mattson Technology, Inc. (Nasdaq: MTSN), a leading supplier of advanced process equipment used to manufacture semiconductors, today reported financial results for the fourth quarter and year ended December 31, 2003.

Highlights of this report include:

• The Company achieved profitability in the fourth quarter of 2003. Net loss for the year decreased 70% compared to 2002, the result of significant restructuring actions to focus the company’s business on its core technologies and aggressively reduce costs.

• Net sales of $43.4 million were 33% higher than the previous quarter. Shipments rose 77% over the same period.

• Bookings increased 24% to $48.5 million in the fourth quarter of 2003 from the third quarter of 2003.

• Operating expenses were down for the fourth consecutive quarter. The $16.6 million of operating expenses in the fourth quarter of 2003 was $1.3 million lower than in the previous quarter.

“We finished 2003 on a strong note, with a profitable fourth quarter that exceeded our goals, demonstrating the success of the repositioning and restructuring of our company,” said David L. Dutton, president and chief executive officer of Mattson Technology.

“With improving business conditions, 2004 offers us many opportunities to prove the effectiveness of our new business model,” Dutton continued. “The crisp execution of our focused strategies has resulted in technology innovations, new customer wins and improved cost-efficiencies that should help us increase profitability and market leadership in the next industry upturn.”

Net sales for the quarter were $43.4 million, a 33% increase from $32.6 million in the third quarter of 2003, and a 12 % decrease from $49.2 million in the fourth quarter of 2002. Net sales for the fourth quarter of 2003 consisted of $39.1 million in sales of RTP and Strip products, royalties of $3.0 million related to the settlement of the patent infringement suit with Dainippon Screen Manufacturing Co., Ltd. (DNS), and $1.3 million recognized upon customer acceptance of a wet tool excluded from the divestiture of the wet products division. Net sales in the fourth quarter of 2002 included sales of products from the wet products division, which Mattson divested on March 17, 2003. Net sales of RTP and Strip products were $29.6 million for the third quarter of 2003, and $22.9 million for the fourth quarter of 2002. Net sales of RTP and Strip products in the fourth quarter of 2003 increased 32% compared to the third quarter of 2003, and increased 71 % compared to the fourth quarter of 2002.

Net income for the fourth quarter of 2003 was $1.1 million, or $0.02 per share, compared to a net loss of $3.9 million or $(0.09) per share for the third quarter of 2003, and a net loss of $31.9 million or $(0.71) per share for the fourth quarter of 2002. The third quarter 2003 loss included a $0.5 million charge related to restructuring, and the fourth quarter 2002 loss included an $11.1 million charge related to restructuring.

Shipments for the quarter were $42.1 million, a 77% increase from $23.8 million in the third quarter of 2003, and an increase of $1.6 million from $40.5 million in the fourth quarter of 2002. Again, shipment in the fourth quarter of 2002 included products from the wet products division.

Gross margin for the fourth quarter of 2003 was 41.7%, an increase of 2.6 percentage points from 39.1% for the third quarter of 2003, and an increase of approximately 21 percentage points from 20.5% gross margin for the fourth quarter of 2002.

Net bookings for the fourth quarter of 2003 were $48.5 million, a 24% increase from $39.0 million in the third quarter of 2003, and a 10% increase from $44.2 million in the fourth quarter of 2002, which included bookings from the wet products division. Net bookings in the fourth quarter of 2003 resulted in a book-to-bill ratio of 1.15 to 1.0.

Operating expenses for the quarter were $16.6 million, a decrease of about $1.3 million from $17.9 million in expenses for the third quarter of 2003, and $25.5 million less than $42.1 million in expenses for the fourth quarter of 2002. The $1.3 million reduction achieved in the fourth quarter of 2003 is attributable to additional cost-reduction efforts and cost sharing with an alliance partner in connection with an R&D project scheduled for completion this year.

Deferred revenue, which represents tools shipped and awaiting customer acceptance and pre-paid royalties received from DNS, was $38.7 million at the end of the fourth quarter of 2003, $10.2 million higher than the balance of $28.5 million at the end of the third quarter of 2003, and $70.0 million lower than the balance of $108.7 million at the end of 2002, which included wet products. The $38.7 million in deferred revenue includes $17.7 million in payments related to DNS royalties. The decline in deferred revenue compared to the fourth quarter of 2002 results primarily from the sale of the wet products division, which had accounted for the majority of our deferred revenue.

Net sales for fiscal 2003 were $174.3 million, a decrease of 14% from fiscal 2002 net sales of $203.5 million. Net sales of RTP and Strip products for fiscal 2003 were $128.7 million, an increase of 8% from fiscal 2002 net sales of RTP and Strip products of $119.7 million.

Net loss for fiscal 2003 was $28.4 million or $(0.63) per share, compared to a fiscal 2002 net loss of $94.3 million or $(2.23) per share. Net loss for fiscal 2003 includes restructuring charges of $0.5 million and a loss on the disposition of the wet products division of $10.3 million, and net loss for fiscal 2002 includes restructuring charges of $17.3 million.

Shipments for fiscal 2003 were $131.4 million, a 25% decrease from shipments of $174.6 million in fiscal 2002. Results in fiscal 2002 and the first quarter of 2003 included shipments of products from the wet products division.

Gross margin for fiscal 2003 was 35.3%, an increase of approximately 15 percentage points from 19.9% for fiscal 2002.

Operating expenses for fiscal 2003 were $79.9 million, a decrease of about $67.6 million from the $147.5 million operating expenses in fiscal 2002. The significant reduction in operating expenses in fiscal 2003 is primarily attributable to cost savings resulting from the divestiture of the wet products division and additional cost-reduction efforts.

The company ended fiscal 2003 with cash, cash equivalents and restricted cash of $77.6 million, a decrease of $5.9 million from $83.5 million at September 28, 2003, and a decrease of $11.4 million from $89.0 million at the end of fiscal 2002. During the fourth quarter of 2003, the company received a $6.0 million payment from DNS. In addition, the company made payment of $4.4 million to SCP towards its remaining obligation. Working capital at the end of fiscal 2003 increased to $56.9 million from $48.9 million at September 28, 2003, and decreased from $62.1 million at December 31, 2002.

Ludger Viefhues, chief financial officer said, “With contributions from substantial margin improvement and a significant reduction in operating expenses, we are feeling very positive about our ability to increase profitability during 2004. In addition, our financial position remains strong, with almost $78 million in cash and cash equivalents and no long-term debt on the balance sheet.”

Attached to this news release are unaudited condensed consolidated statements of operations and balance sheets.

First Quarter 2004 Outlook: New order bookings in the first quarter of 2004 are expected to increase by approximately 12%-15%. Net sales in the first quarter of 2004 are expected to range between $47 million and $49 million, and gross margin in the first quarter is expected to be approximately 41%-44%.

At 6:30 AM (Pacific Standard Time), Wednesday, January 28, 2004, Mattson will hold a conference call to review the following topics: fourth quarter and 2003 financial results, current business conditions and the near-term business outlook. The conference call will be webcast via the Internet (www.mattson.com, under “Investors”), beginning at 6:30 AM Pacific Standard Time, January 28, 2004. In addition to the live webcast, a replay will be available to the public on the Mattson website for one week following the live broadcast.

“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, including but not limited to: anticipated bookings, revenue and margins for future periods and expected results from restructurings. 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 equipment and the length and severity of the demand slowdown in those markets; customer rate of adoption of new technologies; the timing of significant customer orders; 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; 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. The Company assumes no obligation to update the information provided in this news release.

About Mattson Technology, Inc.

Mattson Technology, Inc. is a leading supplier of semiconductor wafer processing equipment used in the fabrication of integrated circuits. The company’s dry strip and RTP equipment utilize innovative technology to deliver advanced processing capabilities on high-productivity platforms for the fabrication of current- and next-generation devices. Since beginning operations in 1989, the company’s core vision has been to help bring technology leadership and productivity gains to semiconductor manufacturers worldwide. For more information, please contact Mattson Technology, Inc., 47131 Bayside Parkway, Fremont, Calif. 94538. Telephone: (800) MATTSON/(510) 657-5900. Fax: (510) 492-5911.

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MATTSON TECHNOLOGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(Unaudited)

	THREE MONTHS ENDED						YEAR ENDED
	DEC. 31, 2003			DEC. 31, 2002			DEC. 31, 2003			DEC. 31, 2002
Net sales	$	43,376		$	49,244		$	174,302		$	203,520
Cost of sales		25,288			39,160			112,783			163,063
Gross margin		18,088			10,084			61,519			40,457
Operating expenses:
Research, development and engineering		4,272			8,480			22,988			37,395
Selling, general and administrative		11,983			20,965			54,292			86,218
Amortization of intangibles		328			1,530			2,151			6,591
Restructuring and other charges		—			11,136			489			17,307
Total operating expenses		16,583			42,111			79,920			147,511
Income (loss) from operations		1,505			(32,027	)		(18,401	)		(107,054	)
Loss on disposition of Wet Business		—			—			(10,257	)		—
Interest and other income (expense), net		(212	)		(1,088	)		653			12,636
Income (loss) before provision for income taxes		1,293			(33,115	)		(28,005	)		(94,418	)
Provision (benefit) for income taxes		208			(1,180	)		350			(147	)
Net income (loss)	$	1,085		$	(31,935	)	$	(28,355	)	$	(94,271	)
Net income (loss) per share:
Basic	$	0.02		$	(0.71	)	$	(0.63	)	$	(2.23	)
Diluted	$	0.02		$	(0.71	)	$	(0.63	)	$	(2.23	)
Shares used in computing net income (loss) per share:
Basic		45,245			44,753			44,997			42,239
Diluted		47,249			44,753			44,997			42,239

MATTSON TECHNOLOGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

(Unaudited)

ASSETS
	Dec. 31, 2003			Dec. 31, 2002
Current assets:
Cash and cash equivalents	$	77,115		$	87,879
Restricted cash		509			1,105
Accounts receivable, net		34,260			34,834
Advance billings		20,684			27,195
Inventories		27,430			50,826
Inventories—delivered systems		6,549			47,444
Prepaid expenses and other current assets		12,995			13,676
Total current assets		179,542			262,959
Property and equipment, net		16,211			18,855
Goodwill		8,239			12,675
Intangibles, net		2,626			15,254
Other assets		769			2,416
Total assets	$	207,387		$	312,159
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	21,340		$	14,346
Accrued liabilities		62,608			77,795
Deferred revenue		38,680			108,698
Total current liabilities		122,628			200,839
Long-term liabilities:
Deferred income taxes		1,055			5,215
Total long-term liabilities		1,055			5,215
Total liabilities		123,683			206,054
Stockholders’ equity:
Common stock		45			45
Additional paid-in capital		546,099			542,482
Accumulated other comprehensive income		9,468			7,131
Treasury stock		(2,987	)		(2,987	)
Accumulated deficit		(468,921	)		(440,566	)
Total stockholders’ equity		83,704			106,105
	$	207,387		$	312,159