!!! Press Release !!!

AIXTRON Announces Third Quarter 2004 Financial Results

Aachen, Germany – November 4, 2004 – AIXTRON AG (FSE: AIX; ISIN DE0005066203), a leading provider of equipment for compound semiconductor epitaxy, today announced financial results for the third quarter of 2004, ended September 30, 2004.

Third Quarter Results of 2004

The total value of equipment orders received rose by 15 percent year over year, from Euro 22.6 million in the third quarter of 2003, to Euro 25.9 million in the third quarter of 2004. This compares to an equipment order intake of Euro 36.9 million in the second quarter of 2004. The equipment order backlog as of September 30, 2004 was Euro 85.6 million (including Euro 11.5 million in deferred revenue), as compared to Euro 58.4 million as of September 30, 2003, a year-over-year increase of 47 percent.

Total revenues rose by 41 percent year over year, from Euro 21.5 million in the third quarter of 2003 to Euro 30.4 million in the third quarter of 2004. In comparison, revenues in the second quarter of 2004 totaled Euro 34.2 million.

Gross margin on sales improved from 32 percent in the third quarter of 2003 to 41 percent in the third quarter of 2004. This compares to 35 percent in the second quarter of 2004.

Net income totalled Euro 3.2 million in the third quarter of 2004, representing a net income per share of Euro 0.05. This compares to a net loss of Euro 1.5 million in the third quarter of 2003, representing a net loss per share of Euro 0.02, and compares to a net income of Euro 0.5 million in the second quarter of 2004, representing a net income per share of Euro 0.01.

As of September 30, 2004, cash and cash equivalents amounted to Euro 47.5 million, as compared to Euro 45.3 million as of December 31, 2003. As of September 30, 2004, the Company recorded no bank liabilities. The equity ratio as of September 30, 2004 was 66 percent, compared to 80 percent as of December 31, 2003.

Change in Accounting Practice Based on SEC Requirements

The results for the nine-month period ended September 30, 2004 have been prepared based upon Staff Accounting Bulletins and Interpretations of the Securities and Exchange Commission (SEC) in connection with the pending registration of AIXTRON ordinary shares under the Securities Act of 1933, as amended. Such SEC bulletins and interpretations have not been applied to the third quarter of 2003 and the nine-month results reported for the period ended September 30, 2003. AIXTRON believes that any differences that could have resulted from the application of s uch SEC interpretations to fiscal year 2003 would not have been material to the results in that fiscal year 2003. Under the new practice, that portion of the purchase order value that can be apportioned to the installation and commissioning of proven equipment is deferred until customer acceptance. Previously, revenue was recorded in full on delivery of the equipment to customers.

Operational Highlights for the Third Quarter of 2004

• 11 percent of total revenues in the third quarter of 2004 were generated in the United States, 70 percent in Asia, and 19 percent in Europe. The comparable numbers for the second quarter of 2004 and the third quarter of 2003, respectively, were 15 percent and 21 percent in the United States; 82 percent and 75 percent in Asia; and 3 percent and 4 percent in Europe.
• The sale of MOCVD equipment (equipment for Metal Organic Chemical Vapor Deposition) generated 82 percent of consolidated total revenues in the third quarter of 2004, as compared to 83 percent in the second quarter of 2004, and 81 percent in the third quarter of 2003. The remaining revenues were provided by spare parts sales and service.
• Customers placing orders in the third quarter of 2004 included Epitech, IMEC, ITME, OKI, RWTH Aachen, SanAn, Semco, and the University of Bochum.
• Research and development (R&D) expenses in the third quarter of 2004 were Euro 5.6 million, as compared to Euro 4.1 million in the second quarter of 2004 and Euro 4.0 million in the third quarter of 2003. AIXTRON's R&D activities were largely focused on the development of the OVPD® and Tricent® technologies.
• As of September 30, 2004, the number of employees in the AIXTRON Group was 426. This compares to 385 employees as of December 31, 2003.
• In September of 2004 the minority shareholders of Epigress AB, Lund, Sweden, announced their intention to exercise the put options, granted to them in connection with the acquisition by AIXTRON of 69.92% of Epigress AB's common shares in 1999, initiating the requirement of AIXTRON AG to acquire the remaining 30.08% of the common shares in Epigress AB. The transaction was completed on October 11, 2004, on which date Epigress AB became a wholly owned subsidiary of AIXTRON AG.

Management Review

Paul Hyland, Chief Executive Officer at AIXTRON, commented: "AIXTRON's business in the third quarter of 2004 shows that the Company is on track to reach its stated revenue and profitability guidance for 2004. While revenues in the third quarter of 2004 totaled Euro 30.4 million, representing a 41% increase year over year, the gross margin on sales was 41.2 percent and net income rose to Euro 3.2 million, representing a net income margin of 10.4 percent on sales."

Hyland continued: "Despite the relatively short-term visibility in some of the markets AIXTRON serves, we continue to see medium- to long-term optimism in most of our end-user markets. Reflecting a degree of short-term cyclicity in the compound semiconductor equipment industry, AIXTRON's order intake in the third quarter of 2004 declined quarter on quarter, yet increased by 15 percent year over year. On a nine-month basis, order intake increased by 75 percent year over year. After five consecutive quarters of increasing equipment order intake and an exceptional second quarter of 2004, this quarterly decrease does not necessarily indicate a market trend. However, such quarterly swings in order intake do validate our diversification strategy into emerging markets such as Organic Light Emitting Diodes (OLED) and silicon semiconductor technologies."

Business Outlook

On the basis of robust sales and order intake in the first nine months of 2004 and anticipated market demand for the remainder of the year 2004, the Company forecasts total revenues for 2004 will be in the range of € 125 million to € 130 million, with net income in the range of € 3 million to € 4 million (excluding the impact of merger-related expenses).

About AIXTRON

AIXTRON AG (FSE: AIX; ISIN DE0005066203) is a leading provider of equipment for compound semiconductor epitaxy. The Company's products are used by a diverse range of customers worldwide to manufacture advanced semiconductor components such as HBTs, PHEMTs, MESFETs, Lasers, LEDs, Detectors, and VCSELs used in fiber optic communication systems, wireless and mobile telephony applications, optical storage devices, illumination, signaling and lighting, as well as a range of other leading-edge technologies. AIXTRON AG's securities are listed in the Prime Standard market segment of the Frankfurt Stock Exchange and are included both in the TecDAX index and the MSCI World Index. More information about AIXTRON can be found on the Web at www.aixtron.com.

Forward-Looking Statements

This news release may contain forward-looking statements about the business, financial condition, results of operations and earnings outlook of AIXTRON. Words such as "may," "will," "expect," "anticipate," "contemplate," "intend," "plans," "believe," "continue" and "estimate," and variations of these words and similar expressions, identify these forward-looking statements. These statements are not guarantees of future performance, involve certain risks, uncertainties and assumptions that are difficult to predict, and are based upon assumptions as to future events that may not prove accurate. Therefore, actual outcomes and results may differ materially from what is expressed herein. In any forward-looking statement in which AIXTRON expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the statement or expectation or belief will result or be achieved or accomplished. Actual operating results may differ materially from such forward-looking statements and are subject to certain risks, including risks arising from: actual customer orders received by AIXTRON; the extent to which metal-organic chemical vapor deposition, or MOCVD, technology is demanded by the market place; the timing of final acceptance of products by customers; the financial climate and accessibility of financing; general conditions in the thin film equipment market and in the macro-economy; cancellations, rescheduling or delays in product shipments; manufacturing capacity constraints; lengthy sales and qualification cycles; difficulties in the production process; changes in semiconductor industry growth; increased competition; exchange rate fluctuations; availability of government funding; variability and availability of interest rates; delays in developing and commercializing new products; general economic conditions being less favorable than expected; and other factors. The forward-looking statements contained in this news release are made as of the date hereof and AIXTRON does not assume any obligation to (and expressly disclaims any such obligation to) update the reasons why actual results could differ materially from those projected in the forward-looking statements. Any reference to the Internet website of AIXTRON is not an incorporation by reference of such information in this news release, and you should not interpret such a reference as an incorporation by reference of such information.

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© AIXTRON AG, November 4,2004

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