AIXTRON on Track for 2008 Targets / Full Year Guidance Confirmed / Compound Common-Platform Systems Dominate Demand / Continu...

AIXTRON AG, a leading provider of deposition equipment to the
semiconductor industry, today announced the company's financial
results for the first nine months of 2008.

-0-
*T
                                    2008  2007  +/-   2008   2007  +/-
(million EUR)                         9M    9M          Q3     Q3
Revenues                           192.1 160.7  20%   63.9   51.7  24%
Gross profit                        77.3  62.4  24%   26.9   19.9  35%
Gross margin                         40%   39% 1 pp    42%    39% 3 pp
Operating result (EBIT)             25.0  16.4  53%    7.5    5.0  50%
EBIT-margin                          13%   10% 3 pp    12%    10% 2 pp
Net result                          18.9  14.8  28%    5.5    3.4  65%
Net result margin                    10%    9% 1 pp     9%     6% 3 pp
Net result per share - basic (EUR)  0.21  0.17  24%   0.06   0.04  50%
Net result per share - diluted
 (EUR)                              0.21  0.17  24%   0.06   0.04  50%
Free cash flow*                      5.5   2.3 139%  -11.0   -0.2  n/a
Equipment Order Intake             210.2 160.8  31%   52.2   70.0 -25%
Equipment Order Backlog (End of
 Period)                           158.1 102.8  54%  158.1  102.8  54%
* Operating CF + Investing CF + Changes in Cash Deposits
*T

   Financial Highlights

   During the first nine months of 2008, despite a considerably
weaker average US Dollar rate than in the same period 2007, AIXTRON
recorded Revenues of EUR 192.1m, an increase of 20% compared with the
same period last year. The increase in Revenues was largely driven by
strong sales of higher margin compound semiconductor deposition
equipment to the LED industry.

   Gross Profit rose by 24% to EUR 77.3m during the period, yielding
a slightly improved Gross Margin of 40% (vs. 39% during 9M/2007). EBIT
rose 53% to EUR 25.0m, leading to an operating margin of 13%; EBT
increased 58% to EUR 27.6m, and net income came in at EUR 18.9m, up
28%.

   In line with the predicted 'digestion' phase of the current
investment cycle, total Equipment Order Intake declined 28%
sequentially in the third quarter. However, Management still takes a
positive view of the EUR 52.2m in New Orders generated in Q3/2008 and
the 31% year-on-year increase in cumulative nine months Orders, given
the current economic environment.

   AIXTRON's cash position continues to be strong: Cash and Cash
Equivalents (incl. Cash Deposits) remained virtually unchanged
(compared with year end 2007) at EUR 77.2m as of September 30, 2008,
and the Company recorded no bank borrowings.

   Management Review

   Paul Hyland, President & Chief Executive Officer of AIXTRON,
comments: 'In the increasingly difficult macroeconomic environment,
our strategic focus and financial and operational flexibility are
crucially important assets that we are striving to improve further. We
believe that our 'pure-play' market-led developments and the flexible
manufacturing strategies are exactly the focused approach required in
the volatile market environment we are having to contend with. Our
order intake recognition policy remains conservative and consequently
we have not recorded any order cancellations to date. We continue to
have a strong cash position and a debt-free balance sheet.
Operationally, we have worked very hard in recent years not only to
raise the competitiveness of our products, but also to enhance our
manufacturing processes. We continue to see and are pursuing very real
opportunities to further improve our manufacturing profitability in
the coming year. All of this stands us in good stead for the current
challenge, and will allow us to continue to lead the field when
conditions improve. I am also pleased to be able to say that AIXTRON
will deliver on its original full-year guidance.'

   Outlook

   AIXTRON Management reiterates its now refined full-year 2008
guidance for Total Revenue of EUR 270m and an EBIT Margin of 12%.

   Financial Tables

   The consolidated interim financial statements (balance sheet,
income statement, cash flow statement, statement of changes in equity)
relating to this press release are available on
http://www.aixtron.com, section 'Investors/Reports/Financial Reports',
as part of AIXTRON's Group interim report for the first nine months of
2008.

   Investor Conference Call

   AIXTRON will host a financial analyst and investor conference call
on Thursday, October 30, 2008, 3:00 p.m. CET (7:00 a.m. PDT, 10:00
a.m. EDT) to review the 9 Months 2008 results. From 2:45 p.m. CET
(6:45 a.m. PDT, 9:45 a.m. EDT) you may dial in to the call at +49 (30)
86871-786 or [phone]. The presentation document reviewing
the half year results can be downloaded from http://www.aixtron.com,
section 'Investors/Presentations/IR Presentation'. Both a conference
call audio replay and a transcript of the conference call will be
available at http://www.aixtron.com, section
'Investors/Reports/Conference Call', following the call.

   For further information on AIXTRON AG (FSE: AIXA, ISIN
DE000A0WMPJ6; NASDAQ: AIXG, ISIN US0096061041) please consult our
website at: http://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 within the meaning of the 'safe harbor' provisions
of the United States Private Securities Litigation Reform Act of 1995.
Words such as 'may', 'will', 'expect', 'anticipate', 'contemplate',
'intend', 'plan', 'believe', 'continue' and 'estimate', and variations
of these words and similar expressions, identify these forward-looking
statements. The forward-looking statements reflect our current views
and assumptions and are subject to risks and uncertainties. You should
not place undue reliance on the forward-looking statements. The
following factors, and others which are discussed in AIXTRON's public
filings and submissions with the U.S. Securities and Exchange
Commission, are among those that may cause actual and future results
and trends to differ materially from our forward-looking statements:
actual customer orders received by AIXTRON; the extent to which
chemical vapor deposition, or CVD, 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 update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise, unless required by law.

-0-
*T
Language: English
Issuer:   AIXTRON AG Kackertstr. 15-17
          52072 Aachen
          Deutschland
Phone:    [phone]
Fax:      [phone]
 E-mail:  [e-mail]
Internet: www.aixtron.com
ISIN:     DE000A0WMPJ6, US0096061041
WKN:      A0WMPJ
Indices:  TecDAX Listed: Regulierter Markt in Frankfurt (Prime
           Standard); Freiverkehr in Berlin, Stuttgart, Munchen,
           Dusseldorf; Terminborse EUREX; Foreign Exchange(s) Nasdaq
*T
  
    
  
  
    
      AIXTRON AG, a leading provider of deposition equipment to the 
      semiconductor industry, today announced the company's financial results 
      for the first nine months of 2008.
    
    
      
        
        
        
           
        
        
          2008
        
        
           
        
        
          2007
        
        
           
        
        
          +/-
        
        
           
        
        
          2008
        
        
           
        
        
          2007
        
        
           
        
        
          +/-
        
      
      
        
          (million EUR)
        
        
        
        
          9M
        
        
        
        
          9M
        
        
        
        
        
        
        
        
          Q3
        
        
        
        
          Q3
        
        
        
        
        
      
      
        
          Revenues
        
        
        
        
          192.1
        
        
        
        
          160.7
        
        
        
        
          20%
        
        
        
        
          63.9
        
        
        
        
          51.7
        
        
        
        
          24%
        
      
      
        
          Gross profit
        
        
        
        
          77.3
        
        
        
        
          62.4
        
        
        
        
          24%
        
        
        
        
          26.9
        
        
        
        
          19.9
        
        
        
        
          35%
        
      
      
        
          Gross margin
        
        
        
        
          40%
        
        
        
        
          39%
        
        
        
        
          1 pp
        
        
        
        
          42%
        
        
        
        
          39%
        
        
        
        
          3 pp
        
      
      
        
          Operating result (EBIT)
        
        
        
        
          25.0
        
        
        
        
          16.4
        
        
        
        
          53%
        
        
        
        
          7.5
        
        
        
        
          5.0
        
        
        
        
          50%
        
      
      
        
          EBIT-margin
        
        
        
        
          13%
        
        
        
        
          10%
        
        
        
        
          3 pp
        
        
        
        
          12%
        
        
        
        
          10%
        
        
        
        
          2 pp
        
      
      
        
          Net result
        
        
        
        
          18.9
        
        
        
        
          14.8
        
        
        
        
          28%
        
        
        
        
          5.5
        
        
        
        
          3.4
        
        
        
        
          65%
        
      
      
        
          Net result margin
        
        
        
        
          10%
        
        
        
        
          9%
        
        
        
        
          1 pp
        
        
        
        
          9%
        
        
        
        
          6%
        
        
        
        
          3 pp
        
      
      
        
          
            Net result per share - basic (EUR)
          
        
        
        
        
          0.21
        
        
        
        
          0.17
        
        
        
        
          24%
        
        
        
        
          0.06
        
        
        
        
          0.04
        
        
        
        
          50%
        
      
      
        
          
            Net result per share - diluted (EUR)
          
        
        
        
        
          0.21
        
        
        
        
          0.17
        
        
        
        
          24%
        
        
        
        
          0.06
        
        
        
        
          0.04
        
        
        
        
          50%
        
      
      
        
          Free cash flow*
        
        
        
        
          5.5
        
        
        
        
          2.3
        
        
        
        
          139%
        
        
        
        
          -11.0
        
        
        
        
          -0.2
        
        
        
        
          n/a
        
      
      
        
          Equipment Order Intake
        
        
        
        
          210.2
        
        
        
        
          160.8
        
        
        
        
          31%
        
        
        
        
          52.2
        
        
        
        
          70.0
        
        
        
        
          -25%
        
      
      
        
          
            Equipment Order Backlog (End of Period)
          
        
        
        
        
          158.1
        
        
        
        
          102.8
        
        
        
        
          54%
        
        
        
        
          158.1
        
        
        
        
          102.8
        
        
        
        
          54%
        
      
      
        
          * Operating CF + Investing CF + Changes in Cash Deposits
        
      
    
    
      Financial Highlights
    
    
      During the first nine months of 2008, despite a considerably weaker 
      average US Dollar rate than in the same period 2007, AIXTRON recorded 
      Revenues of EUR 192.1m, an increase of 20% compared with the same period 
      last year. The increase in Revenues was largely driven by strong sales 
      of higher margin compound semiconductor deposition equipment to the LED 
      industry.
    
    
      Gross Profit rose by 24% to EUR 77.3m during the period, yielding a 
      slightly improved Gross Margin of 40% (vs. 39% during 9M/2007). EBIT 
      rose 53% to EUR 25.0m, leading to an operating margin of 13%; EBT 
      increased 58% to EUR 27.6m, and net income came in at EUR 18.9m, up 28%.
    
    
      In line with the predicted 'digestion' phase of the current investment 
      cycle, total Equipment Order Intake declined 28% sequentially in the 
      third quarter. However, Management still takes a positive view of the 
      EUR 52.2m in New Orders generated in Q3/2008 and the 31% year-on-year 
      increase in cumulative nine months Orders, given the current economic 
      environment.
    
    
      AIXTRON's cash position continues to be strong: Cash and Cash 
      Equivalents (incl. Cash Deposits) remained virtually unchanged (compared 
      with year end 2007) at EUR 77.2m as of September 30, 2008, and the 
      Company recorded no bank borrowings.
    
    
      Management Review
    
    
      Paul Hyland, President & Chief Executive Officer of AIXTRON, comments: 
      'In the increasingly difficult macroeconomic environment, our strategic 
      focus and financial and operational flexibility are crucially important 
      assets that we are striving to improve further. We believe that our 
      'pure-play' market-led developments and the flexible manufacturing 
      strategies are exactly the focused approach required in the volatile 
      market environment we are having to contend with. Our order intake 
      recognition policy remains conservative and consequently we have not 
      recorded any order cancellations to date. We continue to have a strong 
      cash position and a debt-free balance sheet. Operationally, we have 
      worked very hard in recent years not only to raise the competitiveness 
      of our products, but also to enhance our manufacturing processes. We 
      continue to see and are pursuing very real opportunities to further 
      improve our manufacturing profitability in the coming year. All of this 
      stands us in good stead for the current challenge, and will allow us to 
      continue to lead the field when conditions improve. I am also pleased to 
      be able to say that AIXTRON will deliver on its original full-year 
      guidance.'
    
    
      Outlook
    
    
      AIXTRON Management reiterates its now refined full-year 2008 guidance 
      for Total Revenue of EUR 270m and an EBIT Margin of 12%.
    
    
      Financial Tables
    
    
      The consolidated interim financial statements (balance sheet, income 
      statement, cash flow statement, statement of changes in equity) relating 
      to this press release are available on http://www.aixtron.com, 
      section 'Investors/Reports/Financial Reports', as part of AIXTRON's 
      Group interim report for the first nine months of 2008.
    
    
      Investor Conference Call
    
    
      AIXTRON will host a financial analyst and investor conference call on 
      Thursday, October 30, 2008, 3:00 p.m. CET (7:00 a.m. PDT, 10:00 a.m. 
      EDT) to review the 9 Months 2008 results. From 2:45 p.m. CET (6:45 a.m. 
      PDT, 9:45 a.m. EDT) you may dial in to the call at [phone] or 
      [phone]. The presentation document reviewing the half year 
      results can be downloaded from http://www.aixtron.com, 
      section 'Investors/Presentations/IR Presentation'. Both a conference 
      call audio replay and a transcript of the conference call will be 
      available at http://www.aixtron.com, 
      section 'Investors/Reports/Conference Call', following the call.
    
    
      For further information on AIXTRON AG (FSE: AIXA, ISIN DE000A0WMPJ6; 
      NASDAQ: AIXG, ISIN US0096061041) please consult our website at: http://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 within the meaning of the 'safe harbor' provisions of 
      the United States Private Securities Litigation Reform Act of 1995. 
      Words such as 'may', 'will', 'expect', 'anticipate', 'contemplate', 
      'intend', 'plan', 'believe', 'continue' and 'estimate', and variations 
      of these words and similar expressions, identify these forward-looking 
      statements. The forward-looking statements reflect our current views and 
      assumptions and are subject to risks and uncertainties. You should not 
      place undue reliance on the forward-looking statements. The following 
      factors, and others which are discussed in AIXTRON's public filings and 
      submissions with the U.S. Securities and Exchange Commission, are among 
      those that may cause actual and future results and trends to differ 
      materially from our forward-looking statements: actual customer orders 
      received by AIXTRON; the extent to which chemical vapor deposition, or 
      CVD, 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 update or 
      revise any forward-looking statements, whether as a result of new 
      information, future events or otherwise, unless required by law.
    
    
      
        
          Language:
        
        
           
        
        
          English
        
      
      
        
          Issuer:
        
        
        
        
          AIXTRON AG Kackertstr. 15-17
        
      
      
        
        
        
        
        
          52072 Aachen
        
      
      
        
        
        
        
        
          Deutschland
        
      
      
        
          Phone:
        
        
        
        
          [phone]
        
      
      
        
          Fax:
        
        
        
        
          [phone]
        
      
      
        
          E-mail:
        
        
        
        
          
            [e-mail]
          
        
      
      
        
          Internet:
        
        
        
        
          
            www.aixtron.com
          
        
      
      
        
          ISIN:
        
        
        
        
          DE000A0WMPJ6, US0096061041
        
      
      
        
          WKN:
        
        
        
        
          A0WMPJ
        
      
      
        
          Indices:
        
        
        
        
          
            TecDAX Listed: Regulierter Markt in Frankfurt (Prime Standard); 
            Freiverkehr in Berlin, Stuttgart, München, 
            Düsseldorf; Terminbörse 
            EUREX; Foreign Exchange(s) Nasdaq