ATMI Reports Fourth Quarter and Full Year 2005 Results

ATMI, Inc. (Nasdaq: ATMI), a supplier of specialty
materials and high-purity materials handling and delivery solutions to
the world's leading semiconductor manufacturers, today announced
financial results for its fourth quarter and full year 2005.

   RESULTS FOR THE FOURTH QUARTER 2005

   Revenues were $76.7 million in the fourth quarter, up 18% from
$64.9 million in the fourth quarter of last year, and up 10%
sequentially from $69.7 million in the third quarter of 2005. Net
income was $8.5 million, or $0.22 per diluted share, for the quarter,
compared with $6.9 million, or $0.22 per diluted share, for the fourth
quarter of 2004. Results for the fourth quarter of 2004 included
earnings from continuing operations of $3.9 million, or $0.13 per
diluted share, a gain of $3.3 million, or $0.10 per diluted share, on
the disposal of discontinued operations, and a loss of $0.3 million,
or $0.01 per diluted share, from discontinued operations. Net income
for the third quarter of 2005 was $8.3 million, or $0.22 per diluted
share.

   RESULTS FOR THE FULL YEAR 2005

   Revenues for 2005 were $281.8 million, up 14% from $246.3 million
in 2004. Net income was $30.7 million, or $0.85 per diluted share,
compared with $31.5 million, or $1.00 per diluted share, in 2004,
which included, on a diluted earnings per share basis, $0.64 from
continuing operations, $0.10 from discontinued operations, and $0.26
from gains on disposal of discontinued operations.

   COMMENTS

   Doug Neugold, ATMI's Chief Executive Officer, said, "We expect the
strong growth in revenue and income from continuing operations we
achieved in 2005 will continue in 2006, as a result of the expansion
of 90-nanometer wafer starts by our key customers and the beginning of
65-nanometer processes ramping to volume production. For the past few
years, including 2005, we have increased our joint development
activities with the technology leaders across multiple semiconductor
fabrication process steps. In 2006, as 65-nanometer processes begin to
ramp, we expect this development work to result in higher commercial
sales volume of new products."
   Dan Sharkey, ATMI's Chief Financial Officer, said, "ATMI's fourth
quarter sequential revenue growth of 10% significantly exceeded
industry growth, in line with our expectations, following relatively
flat sequential growth in the previous quarter. For the full year,
revenues grew 14%, about double our estimate of wafer start growth for
the year of 7%."
   "While we were pleased with our top line growth in the fourth
quarter, we are dissatisfied with our earnings performance. Although
our gross margin of 50.2% for the full year was in line with our
target range, our gross margin of 48.7% in the fourth quarter was
about two percentage points lower than we expected. Our fourth quarter
gross margin was negatively affected by unplanned freight and
logistics costs to expedite product overseas, the remaining costs to
complete the relocation of our liquids packaging manufacturing
facility and, to a lesser extent, less favorable product mix during
the period. Additionally, litigation expense and professional fees
associated with Sarbanes-Oxley compliance requirements caused higher
selling, general, and administrative expenses than previously
estimated. We expect that these costs will be considerably less in
2006," Sharkey said.
   As required under the new accounting rules, the company will begin
to recognize expense for all its stock-based compensation in the first
quarter of 2006; the quarterly financial effect resulting from
recognition of expense for all stock-based compensation in 2006 is
estimated to be approximately $0.05 per diluted share.
   Commenting on the outlook for the full year 2006, CEO Doug Neugold
said, "As we exit 2005, nearly 35% of our revenue comes from emerging
technology nodes, which today means copper-based wafers. With copper
wafer start growth estimated to be in excess of 25% in 2006, we expect
to outperform our historical sales growth performance pattern of two
times wafer starts. Current industry estimates indicate that overall
worldwide wafer start growth will be 7%-8% in 2006. The growth and
management of our product portfolio should help drive gross margin
improvement such that, by the fourth quarter of 2006, our gross margin
profile should be three to four percentage points higher than the
gross margin level reported in this recently completed quarter. For
the first quarter specifically, in a generally flat wafer start
environment, we expect revenues in the $74 million to $79 million
range with sequentially improved gross margin, and earnings, including
the full effect of stock-based compensation of approximately $0.05 per
diluted share, between $0.18 to $0.23 per diluted share."

   A conference call (800.289.0743) discussing financial results will
begin at 11:00 a.m. Eastern time, February 8, 2006. A replay
(888.203.1112, passcode 4645757) of the call will be available for 48
hours. An audio webcast of the conference call will be available for
30 days on atmi.com.

   ATMI provides specialty materials and high-purity materials
handling and delivery solutions to the worldwide semiconductor
industry. For more information, please visit atmi.com.

   Statements contained herein that relate to ATMI's future
performance, including, without limitation, statements with respect to
ATMI's anticipated results of operations or level of business for 2006
or any other future period, are forward-looking statements within the
safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. Such statements are based on current expectations only and
are subject to certain risks, uncertainties, and assumptions,
including, but not limited to, changes in semiconductor industry
growth (including, without limitation, wafer starts) or ATMI's
markets; competition, problems, or delays developing and
commercializing new products; problems or delays in integrating
acquired operations and businesses; and other factors described in
ATMI's filings with the Securities and Exchange Commission. Such risks
and uncertainties may cause actual results to differ materially from
those expressed in our forward-looking statements. ATMI undertakes no
obligation to update any forward-looking statements.
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                              ATMI, INC.
                       SUMMARY INCOME STATEMENTS
                 (in thousands, except per share data)

                               Three Months Ended Twelve Months Ended
                                  December 31,        December 31,
                               ---------------------------------------
                                  2005      2004     2005      2004
                                 --------  -------  --------  --------
Revenues                        $ 76,652  $64,871  $281,754  $246,291
Cost of revenues                  39,286   31,481   140,251   122,415
                                 --------  -------  --------  --------
Gross profit                      37,366   33,390   141,503   123,876
Operating expenses
  R & D                            5,544    4,826    22,284    19,577
  S, G, & A                       21,718   18,353    78,810    66,920
                                 --------  -------  --------  --------
                                  27,262   23,179   101,094    86,497
                                 --------  -------  --------  --------

Operating income                  10,104   10,211    40,409    37,379

Other income (expense), net        2,184   (4,351)    4,975    (6,915)
                                 --------  -------  --------  --------

Income from continuing operations 
 before taxes                     12,288    5,860    45,384    30,464

Income taxes                       3,837    1,932    14,662    10,358
                                 --------  -------  --------  --------

Income from continuing operations  8,451    3,928    30,722    20,106

Income (loss) from discontinued
 operations                           --     (276)       --     3,313

Gain on disposal of discontinued
 operations                           --    3,258        --     8,083
                                 --------  -------  --------  --------

Net income                      $  8,451  $ 6,910  $ 30,722  $ 31,502
                                 ========  =======  ========  ========


Diluted earnings (loss) per share:
Income from continuing
 operations                     $   0.22  $  0.13  $   0.85  $   0.64

Income (loss) from discontinued
 operations                           --   ($0.01)       --  $   0.10
Gain on disposal of discontinued
 operations                           --  $  0.10        --  $   0.26
                                 --------  -------  --------  --------
Net income                      $   0.22  $  0.22  $   0.85  $   1.00

Weighted average shares
 outstanding                      37,906   31,704    36,276    31,650

                              ATMI, INC.
                        SUMMARY BALANCE SHEETS
                            (in thousands)

Balance Sheet Highlights                    December 31, December 31,
                                                 2005        2004
                                            --------------------------
Assets
 Cash & marketable securities                $   256,137  $   238,960
 Accounts receivable, net                         47,125       43,680
 Inventory, net                                   39,850       36,918
 Other current assets                             21,675       31,340
                                              -----------  -----------
  Total current assets                           364,787      350,898
 Fixed assets, net                                82,821       69,758
 Other assets                                     52,228       49,444
                                              -----------  -----------
  Total assets                               $   499,836  $   470,100
                                              -----------  -----------

Liabilities and stockholders' equity
 Accounts payable                            $    11,910  $    16,174
 Short-term debt                                      77          220
 Other current liabilities                        32,191       37,875
                                              -----------  -----------
  Total current liabilities                       44,178       54,269
 Long-term debt                                       --      115,084
 Other long-term liabilities                       3,460        3,171
 Stockholders' equity                            452,198      297,576
                                              -----------  -----------
  Total liabilities & stockholders'equity    $   499,836  $   470,100
                                              -----------  -----------
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