ADE Corporation Posts Strong Revenue and Earnings in Fourth Quarter; Sets Record for Annual Net Income

ADE Corporation (Nasdaq: ADEX) today reported its
financial results for its fourth quarter and fiscal year ended April
30, 2005.
   Revenue for the fourth quarter of fiscal 2005 was $29.8 million,
up slightly from $29.5 million for the third quarter of fiscal 2005
and an increase of 14 percent from $26.2 million for the fourth
quarter of fiscal 2004. ADE posted net income of $23.1 million, or
$1.60 per diluted share, for the fourth quarter of fiscal 2005. This
figure includes approximately $17.2 million for the reversal of
deferred tax asset valuation allowances. Excluding this benefit, ADE's
non-GAAP net income was $5.9 million, or $0.41 per diluted share. This
compares with net income of $6.4 million, or $0.45 per diluted share,
for the third quarter of fiscal 2005 and $3.2 million, or $0.23 per
diluted share, for the year-ago fourth quarter.
   "ADE Corporation completed an exceptional fiscal year on a high
note, delivering another quarter of strong revenue and profitability,"
said Dr. Chris L. Koliopoulos, ADE's president and chief executive
officer. "For the fourth quarter, the Company's order activity
continued to outpace the semiconductor capital equipment industry as
we a posted a book-to-bill ratio of 0.9 compared to the North American
Semiconductor Equipment average of 0.81. In addition, ADE delivered
another quarter of solid cash flow as we set a new high water mark for
the Company with $72.8 million in cash and cash equivalents on April
30. For the full fiscal year, ADE also established new records for
profitability and cash generation while producing an impressive return
on equity."
   "We continued to generate the majority of our revenue and orders
from our 300mm products while also increasing revenue for 200mm tools
during the fourth quarter," Dr. Koliopoulos continued. "Activity in
Asia-Pacific rose and accounted for nearly half of our quarterly
revenue, while Japan, Europe and the U.S. each contributed a healthy
mix of the remaining sales."
   "Beyond the bare wafer activities, ADE also continued to see signs
of growth during the latter part of fiscal 2005 as we pursued our
strategy to penetrate the semiconductor device market. For the fourth
quarter, we generated 17 percent of our revenue from device makers
and, for the full year, 11 percent of sales came from this market.
This compares with nine percent for both the fourth quarter and the
full year fiscal 2004," said Dr. Koliopoulos.
   ADE's backlog grew eight percent to $45.0 million on April 30,
2005 from $41.5 million on April 30, 2004. Gross margin for the fourth
fiscal quarter was 55 percent, up from 51 percent in the year-ago
quarter. ADE generated $8.0 million of positive cash flow for the
fourth quarter of fiscal 2005. The Company's $72.8 million in cash and
cash equivalents on April 30, 2005 is a new Company record and
compares with $41.6 million at the end of fiscal 2004.

   Fiscal 2005 Results

   For the fiscal year ended April 30, 2005, ADE grew revenue by 32
percent to $116.9 million from $88.6 million for fiscal 2004. For the
full year, ADE's net income was $40.9 million, or $2.86 per diluted
share. Excluding the aforementioned benefit for the reversal of
deferred tax asset valuation allowances, ADE's non-GAAP net income for
full fiscal year 2005 was a record $23.7 million, or $1.66 per diluted
share. This is an increase of 168 percent from $8.8 million, or $0.62
per diluted share, for the full fiscal year 2004.
   ADE Chief Financial Officer Brian James said, "Fiscal 2005 was a
stellar year for our Company. Chief among ADE's many noteworthy
financial accomplishments was our record profitability. This was
achieved through a combination of strong revenue and stringent cost
management. For the full year, ADE generated operating margins in
excess of 20 percent, which ranks among the best in our industry. In
addition, our balance sheet strengthened throughout the year."

   Looking Ahead

   "With strong market share, new tools coming into the market and an
organization that is committed to excellence, ADE has the ingredients
to out-perform the industry in fiscal 2006," added Dr. Koliopoulos.
"The expansion of 300mm wafer production provides us with confidence
that sales will remain strong in the years ahead. Our optimism is
further bolstered by the launch of our yield management and data
mining system for wafer manufacturers as well as our surface
topography tools for copper CMP monitoring of patterned wafers. These
products are each currently in the advanced stage of beta testing and
should help ADE gain a greater share of the device and wafer markets
in fiscal 2006. We look forward to displaying these products, as well
as introducing our next-generation particle inspection and defect
classification tool, WaferXam, at Semicon West in July."
   "We anticipate that first-quarter revenue will decline on a
sequential basis due to an anticipated shipment delay of a
multi-million dollar order associated with a temporary supply issue,"
concluded Dr. Koliopoulos. "We expect that our profits will remain
solid and that sales will strengthen later in the fiscal year as the
industry strengthens and our new products gain acceptance."
   For the first quarter of fiscal 2006, the Company anticipates that
revenue will be in the range of $24 million to $25 million. Gross
margins are expected to be in the range of 53 percent to 54 percent.
As a result of the aforementioned reversal of ADE's tax valuation
allowance, the Company expects to begin recognizing a tax rate of 33%
in the first quarter of fiscal 2006. Based on these factors, the
Company anticipates pre-tax income in the range $3.0 million to $3.8
million and after-tax net income ranging from $2.0 million to $2.5
million, representing earnings per share of $0.14 to $0.17 for the
first quarter of fiscal 2006. This guidance assumes 14.5 million
weighted average shares outstanding for the period ending July 31,
2005.

   Non-GAAP Financial Results

   In an effort to provide investors with additional information
regarding the Company's results, this news release presents certain
figures that exclude the impact of the Company's reversal of deferred
tax asset valuation allowances in the fourth quarter of fiscal 2005.
The figures may be deemed to be "non-GAAP financial measures." ADE's
non-GAAP financial measures are a supplement to financial statements
prepared based on generally accepted accounting principles ("GAAP").
The Company believes this presentation provides investors and ADE
management with additional useful insights into its underlying results
because of the materiality of the reversal of its deferred tax asset
valuation allowances on its fourth-quarter and full-year fiscal 2005
net income. Management believes that presenting results that exclude
the impact of this reversal facilitates period-to-period comparisons
of the Company's growth on a more consistent basis that better
reflects actual trends. A reconciliation of the non-GAAP financial
measures to the most directly comparable GAAP financial results is
included in the table titled "Non-GAAP to GAAP Reconciliation" in this
news release. These non-GAAP financial measures should not be
considered in isolation from the comparable GAAP measures nor
considered a substitute therefor.

   Conference Call Reminder

   ADE will host a conference call and webcast on July 6, 2005 at
8:30 a.m. Eastern Time (ET) to discuss these financial results. To
participate in the webcast, please visit the "Investor Relations"
section of the ADE website, located at www.ade.com. A replay of the
call will be available on the website two hours after the completion
of the conference call and will continue to be available for a period
of one year.

   About ADE Corporation

   ADE Corporation is a leading supplier of metrology and inspection
systems for the semiconductor wafer, semiconductor device, magnetic
data storage and optics manufacturing industries. The Company's
systems analyze and report product quality at critical manufacturing
steps for yield enhancement, providing quality certification data that
is relied upon by semiconductor wafer, device and computer disk
manufacturers. The Company's systems also are used for production
measurements in the semiconductor chip fabrication process. To learn
more about ADE, visit the Company's Web site at www.ade.com.

   This news release contains certain forward-looking statements that
are subject to known and unknown risks and uncertainties that could
cause actual results to differ materially from those expressed or
implied by such statements. Those statements that make reference to
the Company's expectations, predictions, assumptions, plans and
anticipations should be considered forward-looking statements. These
statements include, but are not limited to, those associated with the
Company's ability to launch its new products, the strength of the
Company's balance sheet and the Company's financial performance for
the first quarter and full fiscal year 2006, as well as other
statements under "Looking Ahead" in the news release. These statements
involve risks and uncertainties including those associated with the
strength of the semiconductor, data storage and device markets; wafer
pricing and wafer demand; the results of its product development
efforts; the success of ADE's product offerings to meet customer needs
within the timeframes required by customers in these markets; the
Company's growth in backlog and enhanced operating leverage; the
Company's ability to generate strong gross margins; the potential of
rapidly slowing order flow; and Sarbanes-Oxley compliance efforts
underway. ADE disclaims any intent or obligation to update publicly
any forward-looking statements, whether as a result of new
information, future events or otherwise. Further information on
potential factors that could affect ADE's business is described in the
Company's reports on file with the Securities and Exchange Commission,
including its Form 10-K for the fiscal year ended April 30, 2004.

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                            ADE CORPORATION
       UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
               (In thousands, except per share amounts)

                                    Three months      Twelve months
                                        ended            ended
                                      April 30          April 30
                                  ----------------- ------------------

                                    2005     2004      2005     2004
                                  -------- -------- --------- --------

Revenue                           $29,794  $26,184  $116,901  $88,585
Cost of revenue                    13,390   12,858    54,294   45,043
                                  -------- -------- --------- --------
Gross profit                       16,404   13,326    62,607   43,542
                                  -------- -------- --------- --------
Operating expenses:
   Research and development         4,106    3,995    15,519   15,085
   Marketing and sales              4,045    3,015    13,044   10,435
   General and administrative       2,464    2,915    10,404   11,009
   Restructuring charges                -        -         -      393
                                  -------- -------- --------- --------
Total operating expenses           10,615    9,925    38,967   36,922
                                  -------- -------- --------- --------
Income from operations              5,789    3,401    23,640    6,620
Gain on sale of long-term
 investment                             -        -         -    1,729
Gain on sale of marketable
 securities                             -        -         -      398
Interest and other income, net        279       66       668       24
                                  -------- -------- --------- --------
Income before provision for
 (benefit from) income taxes
 and equity in net earnings of
 affiliated companies               6,068    3,467    24,308    8,771
Provision for (benefit from)
 income taxes                     (17,077)     220   (16,633)      46
                                  -------- -------- --------- --------
Income before equity in net
 earnings of affiliated companies  23,145    3,247    40,941    8,725
Equity in net earnings of
 affiliated companies                   -        -         -       48
                                  -------- -------- --------- --------
Net income                        $23,145   $3,247   $40,941   $8,773
                                  ======== ======== ========= ========

Basic earnings per share            $1.63    $0.23     $2.91    $0.63
Diluted earnings per share          $1.60    $0.23     $2.86    $0.62

Weighted average shares
 outstanding - basic               14,166   13,972    14,069   13,887
Weighted average shares
 outstanding - diluted             14,436   14,288    14,312   14,127


                            ADE CORPORATION
            UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
                            (In thousands)

                                                April 30,  April 30,
                                                  2005        2004

Assets
Cash and cash equivalents                        $72,841     $41,560
Marketable securities                                836       1,084
Accounts receivable, net                          18,499      13,604
Inventories                                       30,764      32,745
Other current assets                               1,373       1,068
Deferred income taxes                             10,601           -
                                               ----------  ----------
    Total current assets                         134,914      90,061

Fixed assets, net                                  9,241      10,829
Deferred income taxes                              6,616           -
Investments                                          499         499
Restricted cash                                        -         637
Other assets                                       1,956       6,449
                                               ----------  ----------
     Total assets                               $153,226    $108,475
                                               ==========  ==========

Liabilities and Stockholders' Equity
Total current liabilities                        $18,273     $17,089
Deferred gain on sale-leaseback                    1,496       1,609
Long-term debt                                     3,431       3,608
Total stockholders' equity                       130,026      86,169
                                               ----------  ----------
     Total liabilities and stockholders' equity $153,226    $108,475
                                               ==========  ==========


                            ADE CORPORATION
                    NON-GAAP to GAAP RECONCILIATION
               (In thousands, except per share amounts)

                                       Three months    Twelve months
                                           ended          ended
                                         April 30        April 30
                                     ---------------- ----------------
                                       2005    2004     2005    2004
                                     -------- ------- -------- -------

Net income - GAAP                    $23,145  $3,247  $40,941  $8,773

Less:
  Reversal of income tax valuation
   allowance                         (17,217)      -  (17,217)      -

                                     -------- ------- -------- -------
Net income - non-GAAP                 $5,928  $3,247  $23,724  $8,773
                                     ======== ======= ======== =======


Diluted earnings per share - GAAP      $1.60   $0.23    $2.86   $0.62

Less:
  Reversal of income tax valuation
   allowance                           (1.19)      -    (1.20)      -

                                     -------- ------- -------- -------
Diluted earnings per share - non-GAAP  $0.41   $0.23    $1.66   $0.62
                                     ======== ======= ======== =======
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