COMPUTERS LAPTOPS PDAS COMMUNICATIONS INTERN· CELL PHONES · DSL MODEM · BEEPER · AEROSPA

· SPACE STATION · SATELLITES · PROBES · AUTOMOTIVE · G· NAVIGATION · ANTILOCK BRAKING SYSTEMS · AIR BA

· AUTOMOTIVE NAVIGATION SYSTEMS · REMOTE ENTRY SYSTEM· CLIMATE CONTROL UNITS · DASHBOARD INSTRUMEN

· DIGITAL ENTERTAINMENT · DVD · VIDEO GAM· MP3 · HDTV · PHOTOGRAPHY · STEREO EQUIPMENT · MOV

· CD PLAYERS · VCRS · CAMCORDERS · HANDH· VOICE RECORDERS · MEDICAL · MRI · PACEMAKE

MICROSCOPIC SURG· LASER OPTICS · BIOCHIPS · TRANSPORTATION · AIRPLAN

· AUTOMOBILES · TRAINS · BUSES · SUBWAYS · BOATS · FREIGHT· RADAR · ELEVATORS · ESCALATORS · FIRE TRUCKS · POLICE CA

AMBULANCES · COCKPIT VOICE RECORD· HOME · MICROWAVES · TOYS · ANSWERING MACHIN

· ALARM SYSTEMS · THERMOSTATS · TOASTERS · WASH· MACHINES · DRYERS · DISHWASHERS · STOVES · REFRIGERATO

· TELEVISIONS · CONSUMER SERVICES · ATM· SMART CARDS · ELECTRONIC BANKING · TOLL TAG

· ELECTRONIC STOCK TRADING · AUTOMATED QUOTE SYSTEM· COMPUTERS · LAPTOPS · PDAS · COMMUNICATIONS · INTERN

· CELL PHONES · DSL MODEM · BEEPER · AEROSPACE · SPACE STAT· SATELLITES · PROBES · AUTOMOTIVE · GPS NAVIGATIO

· ANTILOCK BRAKING SYSTE· AIR BAGS · AUTOMOTIVE NAVIGATION SYSTEMS · REMOTE ENT

· CLIMATE CONTROL UNITS · DASHBOARD INSTRUMENTS · DIGI· ENTERTAINME

· DVD · VIDEO GAM· MP3 · HDTV · PHOTOGRAPHY · STEREO EQUIPME

· MOVIES · CD PLAYERS · VCRS · CAMCORD· HANDHELD VOICE RECORDERS · MEDICAL · M

· PACEMAKERS · MICROSCOPIC SURG· LASER OPTICS · BIOCHI

· TRANSPORTATION· AIRPLANES · AUTOMOBILES · TRAINS · BUS· SUBWAYS · BOATS · FREIGHTERS · RADAR · ELEVATO

· ESCALATORS · FIRE TRUCKS · POLICE CARS · AMBULANC· COCKPIT VOICE RECORDERS · HOME · MICROWAV

· TOYS · ANSWERING MACHIN· ALARM SYSTEMS · THERMOSTATS · TOASTERS · WASHING MACHIN

· DRYERS · DISHWASHERS · STOV· REFRIGERATORS · TELEVISIONS · CONSUMER SERVICES · ATM· SMART CARDS · ELECTRONIC BANKING · TOLL TAGS · ELECTRO

· STOCK TRADING · AUTOMATED QUOTE SYSTE· COMPUTERS · LAPTOPS · PDAS · COMMUNICATIONS · INTERN

· CELL PHONES · DSL MODEM · BEEP· AEROSPACE · SPACE STATION · SATELLITES · PROB

· AUTOMOTIVE · GPS NAVIGATION · ANTILOCK BRAKING SYSTE· AIR BAGS · AUTOMOTIVE NAVIGATION SYSTEM

· REMOTE ENTRY SYSTEMS · CLIMATE CONTROL UN· · DASHBOARD INSTRUMENTS · DIGITAL ENTERTAINMENT · DV

· VIDEO GAMES · MP3 · HDTV · PHOTOGRAP· STEREO EQUIPMENT · MOVIES · CD PLAYERS · VCRS · CAMCORD

· HANDHELD VOICE RECORD· MEDICAL · MRI · PACEMAKERS · MICROSCOPIC SURG

· LASER OPTICS · BIOCHIPS · TRANSPORTATION · AIRPLAN· AUTOMOBILES · TRA

· BUSES · SUBWAYS · BOATS · FREIGHTERS · RADAR · ELEVATO· ESCALATORS · FIRE TRUCKS · POLICE CARS · AMBULANC

· COCKPIT VOICE RECORD· HOME · MICROWAVES · TOYS · ANSWERING MACHIN

· ALARM SYSTEMS · THERMOSTATS · TOAST· WASHING MACHINES · DRYERS · DISHWASHERS · STOV

R· EFRIGERATORS · TELEVISIONS · CONSUMER SERVICES · ATM· SMART CAR

· ELECTRONIC BANKING · TOLL TAGS · ELECTRONIC STOCK TRAD· AUTOMATED QUOTE SYSTEMS · COMPUT

· LAPTOPS · PDAS · COMMUNICATIONS · INTERNET · CELL PHON· DSL MODEM · BEEPER · AEROSPACE · SPACE STATION · SATELLI

· PROBES · AUTOMOTIVE · GPS NAVIGAT· ANTILOCK BRAKING SYSTEMS · AIR BA

· AUTOMOTIVE NAVIGATION SYSTEMS · REMOTE ENTRY SYSTEM· CLIMATE CONTROL UNI

· DASHBOARD INSTRUMENTS · DIGITAL ENTERTAINMENT · DV· VIDEO GAMES · MP3 · HDTV · PHOTOGRAPHY · STEREO EQUIPME

· MOVIES · CD PLAYERS · VCRS · CAMCORD· HANDHELD VOICE RECORDERS · MEDICAL · MRI · PACEMAKE

· MICROSCOPIC SURGERY · LASER OPTICS · BIOCHI· TRANSPORTATIO

· AIRPLANES · AUTOMOBILES · TRAINS · BUSES · SUBWAYS · BOA· FREIGHTERS · RADAR · ELEVATORS · ESCALATORS · FIRE TRUC

· POLICE CARS · AMBULANCES · COCKPIT VOICE RECORDERS · HO· MICROWAVES · TOYS · ANSWERING MACHIN· ALARM SYSTEMS · THERMOSTATS · TOAST

· WASHING MACHINES · DRYERS · DISHWASHERS · STOV· REFRIGERATORS · TELEVISIONS · CONSUMER SERVICES · ATM

· SMART CARDS · ELECTRONIC BANKING · TOLL TA· ELECTRONIC STOCK TRADING · AUTOMATED QUOTE SYSTEM

· COMPUTERS · LAPTOPS · PDAS · COMMUNICATIO· INTERNET · CELL PHONES · DSL MODEM · BEEPER · AEROSPA

· SPACE STATION · SATELLITES · PROBES · AUTOMOT· GPS NAVIGATION · ANTILOCK BRAKING SYSTEMS · AIR BAG

· AUTOMOTIVE NAVIGATION SYSTE· REMOTE ENTRY SYSTEMS · CLIMATE CONTROL UNI

· DASHBOARD INSTRUMENTS · DIGITAL ENTERTAINMENT · DV· VIDEO GAMES · MP3 · HDTV · PHOTOGRAP

ENVISION…

20

00

AN

NU

AL

RE

PO

RT

300m

m20

0mm

BLANK SILICON WAFERS

ION IMPLANTATIONInjects charged particles into the silicon wafer to change its electrical properties and create active components, or transistor junctions, of the semiconductor chip

RAPID THERMAL

PROCESSINGRapidly heats the surface of the silicon wafer throughout the manufacturing process to complete chemical or electronic reactions

PHOTOSTABILIZATIONImproves ion implant and etch performance by hardening the photoresist material onto which the computer chip design is stenciled

DRY STRIPRemoves the photoresist and unwanted residue from the silicon wafer once the ion implantation or etch process steps are completed

other

processes

SILICON WAFERSReady for testing and cutting

300m

m20

0mm

TYPES OF

COMPUTER CHIPSMicroprocessorDRAMSRAMFlash MemoryMicrocontrollersDSPMOS LogicStandard Cell LogicAnalogOthers

ENVISION a world where what you make is used by everyone, in everything

they touch and everywhere they are located. This is our world, where the

semiconductor equipment we build helps our customers meet the growing

demand for faster, smaller and more power-efficient computer chips.

Whether it’s the laundry machine that did your last batch of clothes, or the

PalmPilot™ that scheduled your last conference call, we were there making

sure these machines work better FOR YOU.

Q199

Q299

Q399

Q499

Q100

(US$ Thousands)

CONSOLIDATED INCOME STATEMENT 1999 2000 % CHANGE

Net sales $ 397,267 $ 680,401 71%

Gross profit 157,082 299,309 91

Operating income 12,333 104,637 748

Net income 14,428 99,115 587

Net income per share basic and diluted 0.18 1.13 528

CONSOLIDATED BALANCE SHEET

Cash and cash equivalents $ 3,530 $ 168,157 4,664%

Working capital 169,759 297,348 75

Total assets 422,835 672,331 59

Stockholders’ equity 342,296 491,369 44

$210

$175

$140

$105

$70

$35

$0

$33

$22

$11

$0

($11)

SALES GROWTH(US$ Millions)

NET INCOME GROWTH(US$ Millions)

$59.

1 $98.

8

$108

.7

$130

.7

$143.1

Q200

$165.8

Q300

$182.5

Q400

$189.0

Q199

Q299

Q399

Q499

Q100

($10

.4)

$6.2 $9

.7

$8.9

$18.9

Q200

$21.6

Q300

$28.5

Q400

$30.2

2

ASDAQ:ACLS//NASDAQ:ACLS//NASDAQ:ACLS//NASDAQ:ACLS//NASDAQ:ACLS//NASDAQ:ACLS//NAS

Axcelis Technologies, Inc. provides state-of-the-artsolutions for transistor formation and adjacentsurface processing applications to the world’sleading semiconductor chip manufacturers. Wework in partnership with our customers around theworld to deliver semiconductor manufacturingapplications, tools and services that provide superiorquality at the lowest total cost of ownership.

FINANCIAL HIGHLIGHTS

The year 2000 was one of great accomplishment for Axcelis Technologies,

Inc. (ACLS). Our 22nd year in business and our first as an independent

public company, it was a year of record financial results; breakthrough

technological and operational achievements; significant customer wins

within the semiconductor capital equipment marketplace; and continued

investment in our people, processes and long-term growth.

ACLS 2000 WINS

> Achieved record revenue and net income

> Outgrew wafer fabrication equipment market for the second

consecutive year

> Reduced order fulfillment cycle time by almost 50% to 4 months

> Scored 100% win rate for HE3 300mm High Energy

Ion Implant sales

> Positioned on 50% of 300mm pilot lines with the FusionES3

Dry Strip tool

> Received “Ten Best Vendor Award” from UMC

> Awarded “VLSI Ten Best Customer Satisfaction” award for

the tenth consecutive year

> Granted prestigious Montgomery County, Maryland,

Workforce “Employer of the Year” award

> Received ISO 14001 certification at all manufacturing locations

These achievements reflect our reputation for excellence and demonstrate our commit-ment to developing the people, technology, products and services that will ensure ourfuture success.

When we envision the future, we see a world in which technology — and its baseunit, the semiconductor chip — is everywhere. As a world-leading provider of advancedmanufacturing solutions and services to the global semiconductor manufacturing industry,Axcelis will thrive as semiconductor-based electronics become increasingly ubiquitous,from advanced personal computers, digital communications and entertainment devices, tofactory floors, cars, homes, appliances and nearly every other facet of everyday life.

Though in many respects we’re a brand new company, we bring with us a morethan 20-year track record of technology innovation. Axcelis has evolved from the lead-ing supplier of ion implantation equipment to an innovator of process and applicationtool suites (ion implantation being only one of them) integral to the formation of the transistors that are the core of semiconductor chips. This evolution has made usmore valuable to our customers and enabled us to grow faster than the semiconductorwafer fabrication equipment market for the last two years.

3

-

TO OUR SHAREHOLDERS:

ENVISION…

2000 200019991999

Wafer Fabrication Equipment Market

120%

100%

80%

60%

40%

20%

0

OUR GROWTH VS. OUR MARKET(% Growth)

+22%

+63% +

85%

+113%

ACLS & SEN Systems Revenue

…EVERYDAY…

4

AMCORDERS · HANDHELD VOICE RECORDERS · MEDICAL · MRI · PACEMAKERS · MICROSCOPIC SURGERY · LAS

HERMOSTATS · TOASTERS · WASHING MACHINES · DRYERS · DISHWASHERS · STOVES · REFRIGERATORS · T

…EVERYONE…

5

SER OPTICS · DIGITAL ENTERTAINMENT · DVD · VIDEO GAMES · MP3 · HDTV · PHOTOGRAPHY · STEREO EQUIP

TELEVISIONS · CONSUMER SERVICES · EDUCATION · ATMS · SMART CARDS · ELECTRONIC BANKING · TOLL TA

6

Along with this evolution has come a broader mix of business, increased recurringrevenues and greater value for our customers. Of particular note, we have built a servicebusiness that comprised 24% of total revenues in 2000. At the same time, we have continued to grow our core systems business, scoring a 100% win rate on 300mm highenergy ion implantation equipment sales in 2000. Likewise, we have continued to gainmarket share in our fast-growing 300mm dry strip and photostabilization businesslines. With the industry on the verge of a shift from 200mm to 300mm wafer fabs, thisis an exciting indicator of Axcelis’s potential.

In 2000, this all added up to record financial performance. We generated worldwidesales (inclusive of our 50-50 joint venture in Japan with Sumitomo Eaton Nova) of $942million, an increase of 85% over the prior year, and earnings per share of $1.13, a 528%increase over 1999 earnings of $0.18 per share.

Given the current economic environment, we don’t expect to repeat that perform-ance in 2001. What we do expect is to continue driving forward on our core strategicobjectives — technology leadership and operational excellence — to produce superiorcustomer satisfaction and shareholder returns. Regardless of the economic cycle, theseare the goals that drive us and are the basis of our increasing profitability, allowing evengreater investment in new and enabling technologies for our customers.

UTERS · LAPTOPS · PDAS · COMMUNICATIONS · INTERNET · CELL PHONES · DSL MODEM · BEEPER · AEROSPA

Our customers use Axcelis’s tools andprocesses to make thechips that are changingyour everyday world.

7

TECHNOLOGY LEADERSHIP

The semiconductor chip is arguably the most sophisticated and complex product evermanufactured by human beings. Making the tools that make these chips requires a profound commitment to innovation and technology leadership.

To do so, we have more than tripled our global R&D investment over the past fiveyears, and almost doubled our R&D spending as a percentage of revenue. Today, over45% of Axcelis’s staff is comprised of scientists, engineers and technologists. Our returnon these investments is evident, with a worldwide strategic patent portfolio that holdsover 400 patents and over 450 patent applications.

Our technology is the creation of our people. In this fast-moving industry, the abilityto evolve technology rapidly and invent new concepts that pragmatically and efficientlyallow our customers to innovate is at the core of our success. To spearhead these efforts,we appointed our first chief technology officer in 2000, Dr. John Poate, a world-renownedexpert in ion implantation technology and silicon processing research. We are also honored to recognize Dr. Victor Benveniste, an expert in ion beam technology and a21-year veteran of Axcelis, as our first Axcelis Fellow in a program designed to recognizeour key technology leaders.

For Axcelis, innovation and technology leadership mean providing superior customer solutions to enhance our customers’ manufacturing capabilities and reducetheir total cost of ownership. This focus has driven our expansion not only into productsbut also applications and services. And it has enabled us to extend our franchise beyondion implantation equipment and into the adjacent processes of photostabilization, dry

ACE · AUTOMOTIVE · PROBES · SPACE STATION · GPS NAVIGATION · ANTILOCK BRAKING SYSTEMS · AIR BA

20001999

$80

$60

$40

$20

0

R&D SPENDING(US$ Millions)

$51.6 $

68.8

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Axcelis’s technologicalinnovations drive product and processlife-cycle solutions forour customers.

9

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10

ECTRONIC STOCK TRADING · AUTOMATED QUOTE SYSTEMS · COMPUTERS · LAPTOPS · PDAS · COMMUNICAT

strip and rapid thermal processing. Not only are we realizing significant technologicaland financial returns in each of these product markets, we are creating significantvalue for customers by engineering synergistic linkages across the sequential steps ofthe semiconductor manufacturing process. Add to this an integrated service packageand you have a very efficient, high-quality, cost-effective and customer-driven solution.

Customers utilize our leading product life-cycle support services because they offera competitive advantage through lower cost of ownership. We are working very hard toincrease the size of this advantage through service innovations. To cite one example,we have added e-diagnostic capabilities to all of our tools, enabling the monitoring andevaluation of installed equipment anywhere in the world. This capability providesenhanced system performance and increased customer up time.

We remain committed to a robust service, innovation and R&D effort, which arethe foundation of our growth strategy. Our customers demand cutting-edge applicationssuited to meeting the downstream needs of the ever-demanding consumer. New productsand services — from MP3 audio and G3 communication protocols, to sophisticated,real-life video games, interactive televisions, time-sensitive coffee makers and evensmart toasters — will keep us all racing toward that next technological breakthroughin chip performance to bring these products to life. As technology leaders, we will bethere to meet that demand.

11

TIONS · INTERNET · CELL PHONES · DSL MODEM · BEEPER · AEROSPACE · SPACE STATION · SATELLITES · PR

OPERATIONAL EXCELLENCE

Two powerful laws govern our industry. First, the semiconductor industry is a cyclicalbusiness. Second is Moore’s Law, which states that semiconductor processing power willdouble every 18 months. It follows that success in our industry through the businesscycle requires speed and agility to meet this continual industry evolution. The fasterwe can respond to shifting customer demands and equipment requirements, the more

valuable we will be to our customers, and the more profitable we will be for ourinvestors.

Likewise, the better quality and more robust the design, manufacturing andservicing of our products, the greater our customer satisfaction and the strongerour competitive position. Accordingly, we have set operational excellence as afundamental, strategic company-wide priority.

Over the past several years, we have applied Lean Manufacturing conceptsand Six Sigma tools to enhance our operational excellence. The results have beenexceptional, but they’re just the beginning of what will be a process of continualimprovement.

To ensure ouremployees’success is to ensure ourcompany’ssuccess.

200019991998

$250

$200

$150

$100

$50

0

$27.8

$93.8

$211.0

BACKLOG(US$ Millions)

12

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We have reduced ion implant order fulfillment time, thelead time to respondto customer-drivenchanges in demand,from 7.5 months in1998 to 4 months in2000. Our goal is toreach 2 months.

13

ACLS 2000 LEAN THINKING RESULTS

> Reduced inventory investment days on hand by 25%

> Implemented e-supply for 80% of ion implant suppliers

> Improved labor productivity by 22% at ACLS’s ion implantation

facility

> Reduced manufacturing cycle times for ion implant systems

by 22%

> Reduced dry strip 300mm manufacturing cycle time by 64%

These initiatives are being designed and led by our operations team.Over the past few years, this group has implemented a number ofpowerful new ideas. Ship from Cell is a great example, where we design,test and assemble equipment in modules. We have developed

proprietary predictive testing tools that enable us to test these modules on the factoryfloor and install them at the customer’s site as full systems anywhere in the world. This process delivers the equipment to the customer four to five weeks faster than theconventional method. In 2000, Axcelis shipped from cell 40% of our implant tools,enabling the reduction of manufacturing lead times in 2000 by 22%, while increasingour ion implant revenue by 86% without adding any additional bricks and mortar.

We also launched Axcelis Connection™, a web-based portal linking customers to Axcelis products and services, including spare parts procurement; personalized product catalogs; a technical resource library; and the SMART™ Program, an Axcelismanaged-inventory replenishment system that guarantees an uninterrupted supply ofcritical consumables. These web-based services have notably reduced transaction costsand enhanced customer communication and service levels worldwide.

PEOPLE

As the success of these programs indicates, our growth starts in one place — ouremployees. We do our best to give our employees in Asia, Europe and America a missionto pursue and the support they need to achieve it. It is the efforts of these talented anddedicated individuals that drive innovation, speed, quality and efficiency within ourown operations and provide total life-cycle solutions to our customers.

Our key focus in 2000 was to align our employee incentives and rewards with ourshareholders. At the time of the IPO, every employee at Axcelis was granted stock options.We are continuing this focus in 2001 and beyond with a compelling Axcelis stock pur-chase program for our employees that allows them to fully participate in our success.

Providing our employees flexibility to develop professionally is another key toour growth. We spent over $1.5 million, or 2% of payroll, in 2000 on continuing training and education programs to ensure that our people are challenged to build skillsfor the future. We also utilize internal development and recognition programs, such asthe Axcelis Talent Review process and the Axcelis Fellows Program, to bring rewardsand, more importantly, recognition to those individuals who provide real-time andfuture growth opportunities to the company.

200019991998

44%

33%

22%

11%

0

24.2

%

39.5

% 44.0

%

GROSS MARGIN GROWTH(% of Revenue)

…EVERYTHING…

14

…EVERYWHERE…15

OUTLOOK

There is no question that our industry is facing a down cycle in thenear term. By the same token, there is no doubt in our minds thatthe long-term prospects for our industry — and for Axcelis — areextraordinary.

The evidence is everywhere. The seemingly insatiable needfor new technologies, and therefore semiconductor chips, drives the demand for Axcelis’s products and services. And we will meetthis demand with our proven ability to deliver innovative customersolutions that will propel our success into the long term.

Along with the internal development of technology andservices, we will continue to leverage external partnerships toaccelerate our growth. With almost 70% of our revenues outside theUnited States, we are fortunate to have Sumitomo Eaton Nova (SEN)as our partner in Japan. This joint venture has provided techno-logical innovations, and a greater ability to meet our customers’needs locally.

LOOKING AHEAD

> We plan to increase Axcelis’s 2001 R&D spending

by 10 to 15%, over already record levels in 2000,

to ensure our continued success as we target new

product development and launch of several

enhanced second generation 300mm tools.

> We will continue to pursue market share and

margin growth by expanding and enhancing our

suite of tool sets, services and applications.

> We are implementing additional employee training

and incentive programs to instill an entrepreneurial

spirit at Axcelis and ensure we continue to attract

and retain the very best people.

> We are continuing to drive our business

performance initiatives to achieve operational

excellence and customer satisfaction.

> We are working in all areas of our business to

create an enterprise that will provide our

shareholders with top quartile profitability and

growth throughout the business cycle.

Bottom line: We are on track and very excited about the future. On behalf of everyone at Axcelis — your fellow shareholders — wethank you for your support.

Brian Bachman Mary PumaVice Chairman & CEO President & COO

16

BOARD OF DIRECTORS

Stephen R. Hardis

Chairman of the Board, Axcelis Technologies, Inc.

Brian R. Bachman

Vice Chairman and Chief Executive Officer, Axcelis Technologies, Inc.

Alexander M. Cutler

Chairman and Chief Executive Officer, Eaton Corporation

Ned C. Lautenbach*

Partner, Clayton, Dubilier & Rice, Inc.

Philip S. Paul*

Chairman, Paul Capital Partners, L.L.C.

Mary G. Puma

President and Chief Operating Officer, Axcelis Technologies, Inc.

Naoki Takahashi

Director, Senior Vice President andGeneral Manager of the Precision Products Division ofSumitomo Heavy Industries, Ltd.

Gary L. Tooker*

Former Chairman and Chief Executive Officer, Motorola, Inc.

* Audit Committee**The members of the

Compensation Committee areeach of the directors other thanMr. Bachman and Ms. Puma.

EXECUTIVE OFFICERS AND MANAGEMENT

Brian R. Bachman

Vice Chairman and Chief Executive Officer

Mary G. Puma

President and Chief Operating Officer

Kevin M. Bisson

Vice President and Controller

Michael L. Dreyer

Vice President and General Manager,Photoresist Processing Systems

Lynnette C. Fallon

Senior Vice President and General Counsel

Michael J. Luttati

Senior Vice President andGeneral Manager, Implant andThermal Processing Systems

Ted S. Miller

Vice President and General Manager,Global Customer Service

Robert A. Mionis

Senior Vice President,Worldwide Operations

Cornelius F. Moses III

Executive Vice President and Chief Financial Officer

Kevin M. O’Connor

Senior Vice President,Human Resources

Craig M. Halterman

Vice President and Chief Information Officer

Charles F. Lesko

Vice President of Worldwide Sales

John M. Poate

Vice President and Chief Technology Officer

SHAREHOLDERINFORMATION

Annual Meeting

Date and Location

The annual meeting of stockholderswill be held at 11:00 a.m. onThursday, June 28, 2001, at StateStreet Bank, 225 Franklin Street,Boston, MA 02110.

Corporate Headquarters

55 Cherry Hill DriveBeverly, MA 01915-1053978-787-4000

Independent Auditors

Ernst & Young LLP200 Clarendon StreetBoston, MA 02116-5072

Investor Information

Information on the company, as well as Form 10-K Report and other SEC filings, can be obtainedfree of charge on our web site athttp://www.axcelis.com or bycontacting our Investor RelationsDepartment at Axcelis Technologies,Inc., 55 Cherry Hill Drive, Beverly,MA 01915-1053. You can also e-mail investor relations at investor.relations@axcelis.com

Legal Counsel

Palmer & Dodge LLPOne Beacon StreetBoston, MA 02108-3190

Stock Listing

The company’s common stock istraded on the NASDAQ StockMarket System under the tickersymbol ACLS.

Transfer Agent and Registrar

For questions regarding misplacedstock certificates, changes of addressor the consolidation of accounts,please contact the company’s transferagent:

Equiserve Trust Company, NAP.O. Box 2500Jersey City, NJ 07303-2500E-mail Address:equiserve@equiserve.comhttp://www.equiserve.com

Web site

http://www.axcelis.com

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SAFE HARBOR STATEMENT

This document contains forward-looking statements under the SECsafe harbor provisions. Thesestatements are based on manage-ment’s current expectations andshould be viewed with caution.They are subject to various risksand uncertainties, many of whichare outside the control of the company, including our ability toimplement successfully our profitplans, the continuing demand forsemiconductor equipment, relativemarket growth, continuity of business relationships with andpurchases by major customers,competitive pressure on sales andpricing, increases in material andother production costs that cannotbe recouped in product pricing and global economic and financialconditions.

COMPUTERS LAPTOPS PDAS COMMUNICATIONS INTERNET CELL PHONES · DSL MODEM · BEEPER · AEROSPACE · SPACE STATION ·SATELLITES · PROBES · AUTOMOTIVE · GPS NAVIGATION ·

ANTILOCK BRAKING SYSTEMS · AIR BAGS ·AUTOMOTIVE NAVIGATION SYSTEMS · REMOTE ENTRY SYSTEMS ·

CLIMATE CONTROL UNITS · DASHBOARD INSTRUMENTS · DIGITAL ENTERTAINMENT · DVD · VIDEO GAMES · MP3 · HDTV · PHOTOGRAPHY · STEREO EQUIPMENT · MOVIES ·

CD PLAYERS · VCRS · CAMCORDERS · HANDHELD VOICE RECORDERS · MEDICAL · MRI ·PACEMAKERS · MICROSCOPIC SURGERY · LASER OPTICS ·BIOCHIPS · TRANSPORTATION · AIRPLANES · AUTOMOBILES · TRAINS · BUSES · SUBWAYS · BOATS · FREIGHTERS ·RADAR · ELEVATORS · ESCALATORS · FIRE TRUCKS · POLICE CARS ·AMBULANCES · COCKPIT VOICE RECORDERS · HOME · MICROWAVES · TOYS · ANSWERING MACHINES · ALARM SYSTEMS ·THERMOSTATS · TOASTERS · WASHING MACHINES · DRYERS · DISHWASHERS · STOVES ·REFRIGERATORS · TELEVISIONS · CONSUMER SERVICES · ATMS · SMART CARDS · ELECTRONIC BANKING · TOLL TAGS ·

LECTRONIC STOCK TRADING · AUTOMATED QUOTE SYSTEMS ·COMPUTERS · LAPTOPS · PDAS · COMMUNICATIONS · INTERNET ·CELL PHONES · DSL MODEM · BEEPER · AEROSPACE · SPACE STATION · SATELLITES · PROBES · AUTOMOTIVEGPS NAVIGATION · ANTILOCK BRAKING SYSTEMS ·

AIR BAGS · AUTOMOTIVE NAVIGATION SYSTEMS · REMOTE ENTRY SYSTEMS · CLIMATE CONTROL UNITS · DASHBOARD INSTRUMENTS · DIGITAL ENTERTAINMENT · DVD ·VIDEO GAMES · MP3 · HDTV · PHOTOGRAPHY · STEREO EQUIPMENT · MOVIES · CD PLAYERS · VCRS · CAMCORDERS · HANDHELD VOICE RECORDERS · MEDICAL ·MRI · PACEMAKERS · MICROSCOPIC SURGERY · LASER OPTICS ·BIOCHIPS · TRANSPORTATION · AIRPLANES · AUTOMOBILES · TRAINS · BUSES · SUBWAYS · BOATS · FREIGHTERS · RADAR ·

LEVATORS · ESCALATORS · FIRE TRUCKS · POLICE CARS ·AMBULANCES · COCKPIT VOICE RECORDERS · HOME · MICROWAVES ·TOYS · ANSWERING MACHINES · ALARM SYSTEMS · THERMOSTATS · TOASTERS · WASHING MACHINES · DRYERS · DISHWASHERS · STOVES · REFRIGERATORS · TELEVISIONS · CONSUMER SERVICES · ATMS ·SMART CARDS · ELECTRONIC BANKING · TOLL TAGS ·

LECTRONIC STOCK TRADING · AUTOMATED QUOTE SYSTEMS ·COMPUTERS · LAPTOPS · PDAS · COMMUNICATIONS · INTERNET · CELL PHONES · DSL MODEM ·BEEPER · AEROSPACE · SPACE STATION · SATELLITES · PROBES · AUTOMOTIVE · GPS NAVIGATION · ANTILOCK BRAKING SYSTEMS · AIR BAGS · AUTOMOTIVE NAVIGATION SYSTEMS · REMOTE ENTRY SYSTEMS · CLIMATE CONTROL UNITS · DASHBOARD INSTRUMENTS · DIGITAL ENTERTAINMENT · DVD ·VIDEO GAMES · MP3 · HDTV · PHOTOGRAPHY · STEREO EQUIPMENT · MOVIES · CD PLAYERS · VCRS · CAMCORDERS ·HANDHELD VOICE RECORDERS · MEDICAL · MRI · PACEMAKERS ·MICROSCOPIC SURGERY · ASER OPTICS · BIOCHIPS · TRANSPORTATION · AIRPLANES ·

AUTOMOBILES · TRAINS · BUSES · SUBWAYS · BOATS · FREIGHTERS ·RADAR · ELEVATORS · ESCALATORS · FIRE TRUCKS · POLICE CARS ·AMBULANCES · COCKPIT VOICE RECORDERS · HOME · MICROWAVES · TOYS · ANSWERING MACHINES · ALARM SYSTEMS ·THERMOSTATS · TOASTERS · WASHING MACHINES · DRYERS · DISHWASHERS · STOVES · REFRIGERATORS · TELEVISIONS ·CONSUMER SERVICES · ATMS · SMART CARDS ·

LECTRONIC BANKING · TOLL TAGS · ELECTRONIC STOCK TRADING · AUTOMATED QUOTE SYSTEMS · COMPUTERS · LAPTOPS · PDAS · COMMUNICATIONS · INTERNET · CELL PHONES · DSL MODEM · BEEPER · AEROSPACE · SPACE STATION ·SATELLITES · PROBES · AUTOMOTIVE · GPS NAVIGATION · ANTILOCK BRAKING SYSTEMS · AIR BAGS · AUTOMOTIVE NAVIGATION SYSTEMS · REMOTE ENTRY SYSTEMS ·CLIMATE CONTROL UNITS · DASHBOARD INSTRUMENTS · DIGITAL ENTERTAINMENT · DVD · VIDEO GAMES · MP3 · HDTV ·PHOTOGRAPHY · STEREO EQUIPMENT · MOVIES · CD PLAYERS · VCRSCAMCORDERS · HANDHELD VOICE RECORDERS ·

MEDICAL · MRI · PACEMAKERS · MICROSCOPIC SURGERY · ASER OPTICS · BIOCHIPS · TRANSPORTATION · AIRPLANES ·

AUTOMOBILES · TRAINS · BUSES · SUBWAYS · BOATS · FREIGHTERS ·RADAR ·

LEVATORS · ESCALATORS · FIRE TRUCKS · POLICE CARS ·AMBULANCES · COCKPIT VOICE RECORDERS · HOME · MICROWAVES ·TOYS · ANSWERING MACHINES · ALARM SYSTEMS · THERMOSTATS · TOASTERS · WASHING MACHINES · DRYERS ·DISHWASHERS · STOVES · REFRIGERATORS · TELEVISIONS · CONSUMER SERVICES · ATMS · SMART CARDS ·

LECTRONIC BANKING · TOLL TAGS · ELECTRONIC STOCK TRADING · AUTOMATED QUOTE SYSTEMS · COMPUTERS · LAPTOPS · PDAS ·COMMUNICATIONS · INTERNET · CELL PHONES · DSL MODEM ·BEEPER · AEROSPACE · SPACE STATION · SATELLITES · PROBES · AUTOMOTIVE · GPS NAVIGATION · ANTILOCK BRAKING SYSTEMS · AIR BAGS ·AUTOMOTIVE NAVIGATION SYSTEMS · REMOTE ENTRY SYSTEMS · CLIMATE CONTROL UNITS · DASHBOARD INSTRUMENTS · DIGITAL ENTERTAINMENT · DVD ·

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