AE to close German plant, 65 jobs to go

Advanced Energy Industries, Inc. plans to transfer manufacturing operations from the Stolberg, Germany site to the Company's manufacturing locations in Shenzhen, China, and Fort Collins, Colorado, and subsequently close its Stolberg facility. Product design, sales and service functions will be reassigned to the Filderstadt, Germany and Fort Collins, Colorado locations. This transition is expected to be completed by October 31, 2007. Hans Betz, president and chief executive officer of Advanced Energy, said, "While the Stolberg facility has contributed to our success over the years, our strategy to drive operational efficiencies on a global scale is clear, and we faced a difficult decision whether to invest in an expansion of our factory in Germany or leverage the infrastructure that we have built in China. As a result of this decision, we will narrow our focus in operations and achieve greater efficiencies in the long term by transferring these lines to our high volume manufacturing facility in Shenzhen, China, and our advanced manufacturing facility in Fort Collins, Colorado." Mr. Betz continued, "This is a difficult decision for the Company, given our talented workforce in Stolberg. The transition will impact approximately 65 employees over the course of the next several months. The Stolberg team has been a dedicated group of employees, committed to meeting our critical objectives, and we thank them for their hard work." Advanced Energy acquired the Stolberg location through the acquisition of Dressler HF Technik GmbH in March 2002. Since that time, the location has continued design, manufacturing and support for the Dressler(R) RF power product line, including the Cesar(R) power generator, which is sold primarily to semiconductor capital equipment and solar cell manufacturing customers. Other Dressler RF products manufactured in Stolberg include the VarioMatch(TM) matching network, the HPG(TM) high power generator, and the LPPA linear amplifier. The site currently contributes approximately 5% of the Company's total annual revenue. The Company will file an amended report on Form 8-K under Item 2.05 within four business days after it makes a determination of the anticipated restructuring charges related to the Stolberg facility closure.