Recently, AIXTRON AG, a leading provider of deposition equipment to the semiconductor industry, announced the company’s financial results for the first nine months of 2008.

                  
                                  * Operating CF + Investing CF + Changes in Cash Deposits

Financial Highlights

During the first nine months of 2008, despite a considerably weaker average US Dollar rate than in the same period 2007, AIXTRON recorded Revenues of EUR 192.1m, an increase of 20% compared with the same period last year. The increase in Revenues was largely driven by strong sales of higher margin compound semiconductor deposition equipment to the LED industry.

Gross Profit rose by 24% to EUR 77.3m during the period, yielding a slightly improved Gross Margin of 40% (vs. 39% during 9M/2007).

EBIT rose 53% to EUR 25.0m, leading to an operating margin of 13%; EBT increased 58% to EUR 27.6m, and net income came in at EUR 18.9m, up 28%.

In line with the predicted “digestion” phase of the current investment cycle, total Equipment Order Intake declined 25% sequentially in the third quarter. However, Management still takes a positive view of the EUR 52.2m in New Orders generated in Q3/2008 and the 31% year-on-year increase in cumulative nine months Orders, given the current economic environment.

AIXTRON’s cash position continues to be strong: Cash and Cash Equivalents (incl. Cash Deposits) remained virtually unchanged (compared with year end 2007) at EUR 77.2m as of September 30, 2008, and the Company recorded no bank borrowings.

Management Review

Paul Hyland, President & Chief Executive Officer of AIXTRON, comments: “In the increasingly difficult macroeconomic environment, our strategic focus and financial and operational flexibility are crucially important assets that we are striving to improve further. We believe that our ‘pure-play’ market-led developments and the flexible manufacturing strategies are exactly the focused approach required in the volatile market environment we are having to contend with. Our order intake recognition policy remains conservative and consequently we have not recorded any order cancellations to date. We continue to have a strong cash position and a debt-free balance sheet. Operationally, we have worked very hard in recent years not only to raise the competitiveness of our products, but also to enhance our manufacturing processes. We continue to see and are pursuing very real opportunities to further improve our manufacturing profitability in the coming year. All of this stands us in good stead for the current challenge, and will allow us to continue to lead the field when conditions improve. I am also pleased to be able to say that AIXTRON will deliver on its original full-year guidance.”

Outlook

AIXTRON Management reiterates its now refined full-year 2008 guidance for Total Revenue of EUR 270m and an EBIT Margin of 12%.