!!! Press Release !!!

Aachen, March 11, 2004, - AIXTRON, the global market and technology leader for MOCVD equipment, the enabling technology to manufacture compound semiconductors and other multi-component materials, reports 2003 year-end-results today.

Consolidated revenues amounted to EUR 91.3m (2002: EUR 150.7m), of which 72% were achieved in Asia, 17% in North America and 11% in Europe. EBIT reached EUR –28.8m, or EUR –24.7 before goodwill (2002: EUR 21.1m), EBT was EUR –27.7m, or EUR –23.6 before goodwill (2002: EUR 23.2m) and the net loss was EUR –19.2m, or EUR –15.1m before goodwill (2002: Net Income EUR 15.3m). Losses per share were EUR –0.30, or EUR -0.23 before goodwill (2002: EUR 0.24).
In addition to the exceptional goodwill adjustment of EUR –4.1m, other one time costs incurred in 2003 include; restructuring costs of EUR -1.7m and the previously reported inventory provision of EUR –8.7m, totaling EUR –14.5m one time costs for the year. Without these costs, the result for the year would have produced an EBIT loss of EUR –14.3m, an EBT loss of EUR –13.2m and a Net Income loss of EUR –8.4m for the year.

On the balance sheet, AIXTRON continues to report a healthy level of cash of EUR 45.3m, and no debt, which, the management believes, provides the foundations of flexibility and financial stability required to implement their strategic goals. AIXTRON continues to report an equity ratio of 79% (2002: 79%).
In view of the losses reported in the year the Executive Board does not propose any dividend payments for fiscal year 2003 (2002: EUR 0.08 per share).
Despite the difficult trading environment, AIXTRON has continued to maintain their technological leadership and believe they have retained their MOCVD equipment market share worldwide at over 60%. This significant achievement is set against a backdrop of the Iraq war and its aftermath, the SARS epidemic in our largest market; Asia, and continued uncertainties about the stability of the world economy compounded by a further significant fall in the value of the US$ against the EUR during 2003.

Consequently, in 2003, customers continued to be cautious in their investment decisions. Incoming orders in 2003 (orders in US$ valued at US$/EUR 1.15) totaled EUR 79.3m (2002: 94.1m) and order backlog at the end of the year amounted to EUR 59.4m.

A market recovery is forecast in 2004 and despite an anticipated average exchange rate of US$1.25/EUR, the AIXTRON Executive Board is predicting 2004 revenues of EUR 121m (+33% yoy) and net income of EUR 0.0m (2003: EUR –19.2m). The anticipated return to a break-even position in the year is due to increased revenue volumes and to full year benefits of cost cutting measures taken during 2003.

Paul Hyland, President & CEO said: “2003 has been the most difficult in AIXTRON’s 20 year history, and the results reflect the reality of a technology market in a down-cycle further hit by SARS, the Iraq conflict and a significant downward revaluation of the US$.

During 2003 we took the decisions to restructure our organization, to significantly reduce our variable costs and to further develop our successful outsourcing strategy. Finally, we took the decision to reduce the Balance Sheet value of goodwill by 4.1m Euro (2.4% of Balance Sheet value) to reflect the change in external opinions on the size and timing of the SiC market.

We believe that we now go into 2004 in a better condition to face the continued challenges ahead, and in a better position to capitalize on the market recovery that we now appear to see some signs of. Industry experts continue to express very positive opinions on the medium to long-term growth prospects for the electronics and photonics sectors, core areas of application for our technology.

The LED market, which is the largest end-user market application for our technology, has continued to generate healthy demand for our equipment, even in this difficult trading environment, however we will continue to be cautious with both expenditure and investments until we see evidence that the current perceived recovery is sustainable.

The priority for AIXTRON during 2004 will be to continue to focus on Customer Service and to invest in the New Product Development of the Tricent tool and OVPD production equipment, to enable AIXTRON to take full advantage from extended markets.

AIXTRON’s pre-eminence in the field of Gas Phase Deposition has enabled the successful development of new technology platforms such as the Tricent tool for key materials of next-generation IT Chips and OVPD for advanced OLED display technology, supporting the confidence that we can continue to generate further growth in these new, much larger markets, in addition to our existing business sectors.

These are extremely challenging times for all technology companies and AIXTRON has shown itself capable and prepared to respond to these challenges. For the AIXTRON management team the continued improvement of our responsiveness to customer needs, the development of market focus for our new technology and a speedy return to profitability remain the key objective for 2004 and beyond“.

The complete annual report is available at www.aixtron.com.

This release does not constitute an offer or invitation to subscribe for or purchase any securities. In addition, the securities of AIXTRON Aktiengesellschaft have not been registered under the United States Securities Laws and may not be offered, sold or delivered within the United States or to U.S. Persons absent registration under or an applicable exemption from the registration requirements of the Unites States Securities Laws.
Certain of the statements contained herein may be statements of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. The company assumes no obligation to update any forward-looking information.

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© AIXTRON AG, March 11, 2004

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