SÜSS MicroTec SE

Quarterly Report • Nov 5, 2008

Nine-month Report 2008

+ + + Key Figures Q3/2008 + + +

in 3 million	Q3/08	Q3/07	Change	9M/08	9M/07	Change
Sales and order position
Order entry	24.8	31.3	-20.8%	111.2	95.5	16.4%
Order backlog as of 09/30	–	–		85.7	72.0	19.0%
Total sales	34.6	22.3	55.2%	104.3	98.7	5.7%
Sales margin	-48.0%	-23.6%		-15.6%	0.2%
Gross profit	0.8	9.2	-91.3%	27.8	43.2	-35.6%
Gross margin	2.2%	41.4%		26.7%	43.8%
Cost of sales	33.8	13.1	158.0%	76.4	55.4	37.9%
EBITDA	-2.3	-3.9	41.0%	0.4	5.1	-92.2%
EBITDA margin	-6.5%	-17.3%		0.4%	5.1%
EBIT	-17.1	-4.9	-249.0%	-16.5	1.3	> -1,000.0%
EBIT margin	-49.3%	-21.8%		-15.9%	1.3%
Earnings after tax	-16.6	-5.3	-213.2%	-16.3	0.2	> -1,000.0%
Basic earnings per share	-0.98	-0.31	-216.1%	-0.96	0.01	> -1,000.0%
Balance sheet
Equity	–	–		88.1	99.1	-11.1%
Equity ratio	–	–		58.0%	68.1%
Return on equity	-0.7%	1.9%		-18.5%	0.2%
Balance sheet total	–	–		152.0	145.6	4.4%
Net cash	–	–		1.5	8.3	-81.9%
Free cash flow	-2.6*	-3.1	-16.1%	-6.6*	-7.2	8.3%
Further key figures
Investments	1.5	2.8	-46.4%	7.9	6.9	14.5%
Investment ratio	4.4%	12.7%		7.6%	7.0%
Depreciation	14.8	1.0	> 1,000.0%	17.0	3.8	347,4%
Employees as of 09/31	–	–		705	732	-3.7%

* ) without consideration of purchased/disposed available-for-sale securities

+ Contents + +

Foreword
----------	--

02 Foreword by the Management Board

Highlights

06 Highlights

Investor Relations

• 08 Investor Relations
• 10 The SUSS MicroTec Share
• 11 Shareholder Structure as of October 31, 2008
• 11 Shareholder Ownership of Officers and Related Persons as of September 30, 2008

Sales and Earnings

• 12 Overview
• 14 Sales and Orders Position by Regions
• 15 Lithography Division
• 16 Substrate Bonder Division
• 17 Test Systems Division
• 18 Others Division
• 19 Device Bonder Division

Financial Statements (IFRS)

• 20 Consolidated Statement of Income
• 24 Consolidated Balance Sheet
• 26 Consolidated Statement of Cash Flows
• 28 Consolidated Statement of Shareholders' Equity
• 30 Segment Reporting
• 32 Selected Explanatory Notes

Service

• 39 Legal Structure of the Group
• 40 Corporate Calendar 2008 Imprint
• Contact

					+ SUSS MicroTec AG Nine-month Report 2008

+ + Foreword by the Management Board

Dear Shareholders, Ladies and Gentlemen,

• 2

In the 2008 Interim Report, we used this space to remark that we expected the second half of the year to be characterized by lower order entry. However, at that time we assumed a figure well in excess of EUR 30 million for the third quarter. In fact, in the third quarter, we achieved an unsatisfactory EUR 24.7 million, below last year's total of EUR 31.3 million. Nevertheless, despite negative trends in the sector overall, SUSS MicroTec was able to hold its own in terms of sales and order entry during the first nine months of the year. Sales of EUR 104.3 million during the nine-month period exceeded last year's total of EUR 98.7 million by approximately six percent, thereby reaching the anticipated range. Third-quarter sales of EUR 34.6 million even surpassed the comparable total of EUR 22.3 million a year ago by approximately 55 percent.

The nine-month result and projected earnings for the full year were both diminished by extraordinary expenses, particularly for intangible assets, of EUR 18.3 million. The generally sound operating performance with earnings before interest and taxes (EBIT) of EUR 1.8 million net of extraordinary expenses was impaired by write-downs, of which only EUR 0.8 million was reflected in cash.

The one-time extraordinary expenses consist of the following essential components:

+ Write-downs of capitalized development costs for C4NP of EUR 8.0 million. Of course, our conviction regarding the value of C4NP technology remains undiminished. However, other than the initial installation at IBM, it is unlikely that we will be able to gain another customer for this technology during the remaining months of 2008. Based on the related impairment test, we have completely written off the remaining capitalized development costs totaling EUR 8.0 million in addition to the planned write-downs of EUR 0.4 million.

Foreword +
Highlights +
Investor Relations +
Sales and Earnings +
Financial Report +
Service +

Michael Knopp Chief Financial Officer

Christian Schubert Member of the Board

• + Amortization of goodwill associated with the American subsidiary Image Technology Inc. of EUR 4.4 million. The significantly weaker performance in terms of sales and net income were attributable to two factors: problems involving a key customer with sustained negative implications for business prospects as well as an extremely difficult market environment for the Mask business line. Given already implemented cost-saving measures at Image Technology, we believe that we have created the foundation for successful future performance, albeit at a sharply reduced sales level. However, under these circumstances, a corresponding correction of the balance-sheet value for goodwill was necessary.
• + Depreciation of inventories of EUR 2.7 million. In the process of carefully analyzing all of the Group's inventories and supplies, we were compelled to readjust the value of raw materials, supplies, and consumables particularly at our American subsidiary. In addition, we have written off demo machines, which were no longer in a condition to be sold.
• + Restructuring costs of EUR 0.8 million. In particular, these include provisions for severance payments related to personnel measures which were already implemented.
• + Value adjustment for a customer-specific project of EUR 1.9 million. For reasons of prudence, we must set aside appropriate provisions for a specific customer project to cover all conceivable related risks. We are currently seeking an amicable settlement.
• + Others comprising EUR 0.5 million.

			+ SUSS MicroTec AG Nine-month Report 2008

In view of the gloomy economic outlook, we have introduced additional comprehensive costreduction and restructuring measures. The cost-reduction measures encompass a Group-wide hiring freeze, general curtailment of travel activities not related to a specific customer project, extremely restrictive budgeting for external service providers, and re-examination and re-approval of all investment projects. Last but not least, management and parts of the staff are foregoing vacation. As a result of restructuring measures already partially implemented in recent weeks, the number of employees was reduced from 732 (June 30, 2008) to 705 as of September 30, 2008 and is expected to continue to decline to approximately 690 by the end of 2008.

Management is paying particular attention to improving the liquidity and in particular the management of our working capital. Here, we still have a long way to go in order to achieve our internal guidelines. In keeping with these guidelines, however, considerable liquidity reserves remain idle in working capital. Thus we have systematically undertaken numerous measures, for example the sale of demo machines. Initial successes are already noticeable. Since the start of the program in the beginning of August 2008, we have booked corresponding orders totaling approximately EUR 3 million, which for the most part will be recorded in sales in 2009.

We will retain the Company's fundamental strategic focus on the growth markets of MEMS, advanced packaging, 3D integration, and compound semiconductors. Our paramount goal is to take more rapid and decisive action within these markets. From our strong market and technological position, we shall adjust to generally weakening market conditions. We then intend to benefit fully from a subsequent market recovery. In order to position the Group for sustainable success, Mr. Christian Schubert joined the Management Board team on October 2, 2008. He is assuming the duties of a COO on an interim basis.

Foreword +
Highlights +
Investor Relations +
Sales and Earnings +
Financial Report +
Service +

Based on the excellent order backlog of EUR 85.7 million, we expect significantly improved sales in the fourth quarter compared to previous quarters. The order backlog extends well into the first quarter of 2009. For all of 2008, SUSS MicroTec projects sales between EUR 142 million and EUR 145 million and positive EBIT prior to extraordinary expenses in the EUR 5 million to EUR 6 million range. Including the extraordinary expenses, 2008 EBIT is expected to amount to EUR -12.3 million to EUR -13.3 million.

Garching, Germany, November 2008

Michael Knopp Christian Schubert Chief Financial Officer Member of the Board

			+ SUSS MicroTec AG Nine-month Report 2008

+ + Highlights

300mm Mask Aligner for 3D Packaging Unveiled at SEMICON West

At SEMICON West, which took place on July 15–17, 2008 in San Francisco, USA, SUSS MicroTec unveiled the second generation of its MA300 Production Mask Aligner to industry experts. Equipped with additional functionality and increased capacity, the new 300 mm system is particularly well suited for the 3D packaging growth market. Ever-increasing demands on the power density of chips along with shrinking chip size and strong cost pressures require new packaging technologies. 3D packaging, which is used to manufacture components for multifunctional cellular telephones and supercomputers, represents a significant trend in the area of advanced packaging. These technologies require cost-effective lithography solutions with precise alignment accuracy. In addition to highly precise top-side alignment, the new MA300 generation enables bottom-side and infrared (IR) alignment, thereby facilitating the processing of double-sided structured wafers.

SUSS Introduces New XBC Production Wafer Bonder for CMOS Image Sensors

At SEMICON Taiwan, which took place on September 9–11, 2008 in Taipei, SUSS MicroTec gave trade visitors the opportunity to learn more about the world's first wafer bonder product family specifically designed for the manufacturing of CMOS image sensors. The new XBC300 is distinguished not only by its high throughput capacity, but also by its ability to perform a wide range of wafer bonding processes on the smallest production footprint in the market today. Thanks to these features, SUSS MicroTec's 300 mm Wafer Bonder helps to optimize the cost of ownership and, thus, is particularly well suited for CMOS image sensor applications.

Foreword +
Highlights +
Investor Relations +
Sales and Earnings +
Financial Report +
Service +

SUSS Test System with integrated ProbeShield®-Technology

Latest automated Wafer Bonder specifically designed for integration and packaging of CMOS-image sensors

300mm ProbeShield System from SUSS MicroTec Chosen over Competition in Head-to-Head Comparison

In early September, Dresden-based SUSS MicroTec Test Systems GmbH announced that it had received an order for the PA300PS with ProbeShield® Technology from a major Asian semiconductor memory manufacturer. The decision in favor of SUSS MicroTec's 300 mm test system followed a six-month, systematic, head-to-head comparison with market-leading test solutions for device characterization and wafer-level reliability tests. In the series of tests, SUSS MicroTec's ProbeShield® Technology consistently outperformed the competitive solutions, leading to its ultimate selection. ProbeShield® Technology creates a measurement environment free of any electromagnetic radiation and radio-frequency interference. This sharply increases measurement accuracy, in turn shortening development times for new technologies and expediting the time to market.

American SUSS MicroTec Subsidiary Achieves ISO Certification

Following the ISO certification of SUSS MicroTec Lithography GmbH at the turn of 2007/2008, another SUSS MicroTec subsidiary was granted the globally recognized ISO 9001 certification in mid-September. SUSS MicroTec Inc., based in Waterbury, Vermont, is not only headquarters for the Bonder division, but also the North American sales and service site for all SUSS MicroTec products. The American subsidiary's achievement validates the reliability, process and system orientation, efficiency, and sustainability of SUSS MicroTec's company-wide quality management systems.

	+ SUSS MicroTec AG Nine-month Report 2008

+ + + Investor Relations

Changes in the Management Board

Effective October 2, 2008, the Supervisory Board of SUSS MicroTec AG appointed Mr. Christian Schubert as a new Member of the Management Board. Mr. Schubert succeeds Dr. Stefan Schneidewind, who was asked to step down due to differences of opinion regarding the future strategic direction of the Company. Mr. Schubert brings extensive experience from executive and management positions in the areas of electrical engineering, electronics, and the automotive industry. The native of Amberg, Germany served as a Member of the Management Board of InTiCa Systems AG (inductive components) where he was responsible for optimizing and redirecting business processes and structures to spur the future growth of the company.

Mr. Schubert has assumed the Management Board position on an interim basis. His authority will correspond to that of a COO, with particular focus on the areas of operations, structures, and processes. In the medium term, an individual with a technical background will be added to the Management Board.

Foreword +
Highlights +
Investor Relations +
Sales and Earnings +
Financial Report +
Service +

SUSS MicroTec Remains Committed to the Test Systems Division

Following SUSS MicroTec AG's decision to divest the non-core Device Bonder Division in the 2007 fiscal year, the Management Board undertook a comprehensive review of its strategic options for a possible separation from its Test Systems Division in the first half of 2008. During a comprehensive sales process that extended over many weeks, the testing unit was analyzed and valued on a fundamental basis. As a result, it once again became clear that thanks to its technologically leading product range for failure analysis and device characterization applications the Dresden-based subsidiary is excellently positioned. However, the inspection of bids from several interested parties after the review indicated that in the current difficult investment environment no mutually acceptable offer could be found. Therefore, the Management Board of SUSS MicroTec AG decided against a sale and instead introduced necessary measures to return rapidly to profitability.

					+ SUSS MicroTec AG Nine-month Report 2008

The SUSS MicroTec Share

Despite a sustained difficult market environment, the SUSS MicroTec share performed better than the TecDAX select index of technology shares or the Prime IG Semiconductor sector index. Nevertheless, the share declined by approximately 25%. 400 600

Performance of the SUSS MicroTec Share in 2008

Price of the SUSS MicroTec share on January 1, 2008: 3 4.29 Price of the TecDAX on January 1, 2008: 3 974.19 Price of the Prime IG Semiconductor on January 1, 2008: 3 124.17

• SUSS MicroTec, indexed
• TecDAX

• Prime IG Semiconductor, indexed

• 10

Foreword +
Highlights +
Investor Relations +
Sales and Earnings +
Financial Report +
Service +

Shareholder Structure as of October 31, 2008

Shareholder Ownership of Officers and Related Persons as of September 30, 2008

Management Board	Shares	Options
Dr. Stefan Schneidewind*	18,278	150,000
Michael Knopp	5,000	30,000
Christian Schubert**	0	0

Supervisory Board	Shares	Options
Dr. Franz Richter	101,040	0
Dr. Stefan Reineck	1,600	40,000
Jan Teichert	0	0

* Member of the Board until October 2, 2008

** Member of the Board since October 2, 2008

		+ SUSS MicroTec AG Nine-month Report 2008

+ + + Sales and Earnings

Overview

In the first nine months of the 2008 fiscal year, SUSS MicroTec was able to hold its own in terms of sales and order entry against the negative industry trend. During the nine-month period, sales of 3 104.3 million exceeded last year's 3 98.7 million by approximately six percent. Third-quarter sales of 3 34.6 million surpassed the comparable figure from last year of 3 22.3 million by an impressive 55 percent. Thus, SUSS MicroTec was able to develop better than the market, but the Company also benefited from the order backlog that had accumulated in previous quarters. As of September 30, 2008, the backlog amounted to 3 85.7 million (September 30, 2007: 3 72.0 million), thus, approximately 19 percent higher than a year ago.

Order entry during these nine months totaled 3 111.2 million, compared to 3 95.5 million in the comparable period last year. However, in line with expectations after three consecutive strong quarters, SUSS MicroTec recorded lower order entry of 3 24.7 million in the third quarter (Q3 2007: 3 31.3 million).

However, earnings before interest and taxes (EBIT) in the nine-month period were reduced by extraordinary expenses of 3 18.3 million for the impairment of intangible assets, of which only 3 0.8 million was reflected in cash.

Operating result (EBIT) without extraordinary expenses amounted 3 1.8 million in the nine-month period. However, including these expenses it came to 3 -16.5 million.

The extraordinary expenses consisted of the following essential components:

• + Write-downs on capitalized development costs for C4NP amounting to 3 8.0 million.
• + Amortization of goodwill of the subsidiary Image Technology Inc. calculated at 3 4.4 million.
• + Depreciation on inventories coming to 3 2.7 million.
• + Restructuring costs consisting of 3 0.8 million.
• + Value adjustment for a customer-specific project equaling 3 1.9 million.

• + Others comprised of 3 0.5 million.

• 12

Foreword + Highlights + Investor Relations + Sales and Earnings + Financial Report + Service +

Against this backdrop, earnings after taxes (EAT) declined in the nine-month comparison from 3 0.2 million to 3 -16.3 million in 2008.

As of September 30, 2008, SUSS MicroTec had cash and cash equivalents of 3 15.3 million at its disposal. On the same date, the net cash position amounted to 3 1.5 million (September 30, 2007: 3 8.3 million). Cash flow from operating activities improved in the annual comparison by 3 0.6 million. However, cash flow from operating activities for the nine-month period remained slightly negative at 3 -0.6 million (9M, 2007: 3 -1.2 million). The primary reason for this was the increase in working capital resulting from the higher order backlog. In the first nine months, free cash flow prior to consideration of securities acquisitions of 3 4.5 million (9M 2007: 3 0.0 million) amounted to 3 -6.6 million (9M 2007: 3 -7.2 million).

In view of the gloomy economic outlook, the Management Board introduced comprehensive costreduction and restructuring measures. As a result of restructuring measures already implemented in recent weeks, the number of employees was reduced from 732 (June 30, 2008) to 705 as of September 30, 2008 and is expected to continue to decline to approximately 690 by the end of 2008.

Sales and Orders Position by Region

During this nine-month period, the distribution of sales by region exhibited an overall positive development in the regions of Europe with 3 35.3 million (9M 2007: 3 31.4 million), Japan with 3 10.8 million (9M 2007: 3 10.4 million), and Rest of Asia with 3 32.9 million (9M 2007: 3 24.6 million). Only North America with 3 25.3 million (9M 2007: 3 32.3 million) registered an annual sales decline of approximately 22 percent.

Viewing the regional order entry continues to demonstrate good growth rates in the regions of Europe with 3 38.5 million (9M 2007: 3 33.1 million; +16.0%) and Rest of Asia with 3 37.2 million (9M 2007: 3 21.8 million; +71.0%). However, the regions of Japan with 3 10.7 million (9M 2007: 3 13.5 million) as well as North America with 3 24.8 million (9M 2007: 27.1 million) recorded order declines of approximately 21 percent and 9 percent, respectively. 25 30 35 40 25 30 35 40

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Sales and Earnings +
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Lithography Division

During the first nine months of the current fiscal year, SUSS MicroTec's core business area, lithography, generated sales of 3 68.4 million (9M 2007: 3 54.0 million), thus surpassing last year's amount by approximately 27 percent. In the nine-month comparison, order entry improved by approximately 52 percent to 3 78.1 million (9M 2007: 3 51.3 million). The third quarter of 2008 saw orders primarily for the Mask Aligner and Coater lines for MEMS applications as well as for the compound semiconductor (LED) market.

The division earnings improved sharply in the annual comparison by approximately 159 percent to 3 14.0 million (9M 2007: 3 5.4 million). Along with much higher sales, lower sales and administrative costs had a positive effect on the earnings. Above all, a well-coordinated product portfolio with a compelling cost of ownership accounts for the outstanding performance of the Lithography division, despite negative trends in the industry sector. 60 70 80

15 +

			+ SUSS MicroTec AG Nine-month Report 2008

Substrate Bonder Division

During the first nine months of the current fiscal year, the Substrate Bonder division displayed relatively flat sales and order entry, thus, remaining well below expectations. At 3 11.0 million, sales in the first nine months were approximately four percent lower than a year ago (9M 2007: 3 11.5 million). Order entry in the nine-month period totaled 3 12.9 million (9M 2007: 3 13.1 million).

Earnings in the nine-month period of 3 -7.8 million (9M 2007: 3 -1.4 million) were marred by extraordinary expenses of 3 3.8 million. The extraordinary expenses consisted of extraordinary write-downs of raw materials, supplies, consumables, and demo equipment of 3 1.7 million as well as value adjustments for a customer-specific project of 3 1.9 million. Furthermore, restructuring costs of 3 0.1 million weighed on the result. 20 25

Foreword +
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Sales and Earnings +
Financial Report +
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Test Systems Division

In the first nine months of 2008, the Test Systems division generated sales of 3 18.4 million following 3 18.9 million in the corresponding period last year. Order entry totaled 3 15.9 million, thus approximately 21 percent below the comparable amount a year ago (9M 2007: 3 20.3 million). Significantly lower orders were attributable to the ongoing difficult market environment in the testing systems sector.

Negative earnings for the division of 3 -2.3 million were 3 2.6 million lower in the period comparison. The reason for this was extraordinary expenses totaling 3 1.1 million. These expenses consisted primarily of extraordinary write-downs for raw materials, supplies, consumables, and demo equipment of 3 0.5 million and restructuring costs of 3 0.3 million. Sustained margin compression exerted additional pressure on the division earnings. 20 25

Others Division

The Others division consists of the Photo Mask, Micro-optics, and C4NP business lines and also encompasses the holding functions. Sales and order entry in this division moved lower in the first nine months of the current fiscal year. In the nine-month comparison, sales declined by 3 5.1 million to 3 4.4 million (9M 2007: 3 9.5 million). Order entry fell by 3 3.6 million to 3 4.3 million (9M 2007: 3 7.9 million).

The division earnings of 3 -20.2 million reflected not only a lower contribution from sales, but also extraordinary expenses of 3 12.9 million. Of that amount, 3 8.0 million related to the writedowns of capitalized development costs for C4NP and 3 4.4 million related to the amortization of goodwill associated with the Image Technology Inc. subsidiary based in Palo Alto, California. Furthermore, restructuring costs of 3 0.4 million harmed the division earnings. 5 10 15 20

• 18

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Although the Management Board remains convinced of the value of C4NP technology, it does not expect to gain another customer for this technology for the remainder of 2008 beyond the initial installation at IBM. Consequently, related capitalized development costs were completely written off. In addition, the valuation of the American subsidiary had to be restated in view of a changed sales and earnings situation. The reasons for the much weaker performance were twofold: problems related to a key customer, which had a sustained impact on business prospects, and the ongoing difficult market environment for the Mask business.

Device Bonder Division

Following the sale of the Device Bonder division in July 2007, sales from the further processing of the remaining order backlog as of the closing date (July 16, 2007) amounted to 3 2.1 million in the first nine months of 2008 (9M 2007: 3 4.8 million).

• • +

19 +

			+ SUSS MicroTec AG Nine-month Report 2008

+ + + Financial Report

Consolidated Statement of Income (IFRS)

		07/01 – 09/30/2008
		Discontinued
in T3	Continuing operations	operations
Sales	34,659	-69
Cost of sales	-33,709	-113
Gross profit	950	-182
Selling costs	-6,646	0
Research and development costs	-1,991	0
Administration costs	-4,750	-9
Goodwill Impairment	-4,426	0
Other operating income	1,679	1
Other operating expenses	-1,680	0
Analysis of net income from operations (EBIT):
EBITDA (Earnings before Interest and Taxes,
Depreciation and Amortization)	-2,068	-190
Depreciation and amortization of tangible assets, intangible
assets and investments in subsidiaries	-14,796	0
Net income from operations (EBIT)	-16,864	-190
Financial income/expense	-273	0
Income before taxes	-17,137	-190
Income taxes	723	0
Net profit or loss	-16,414	-190
Thereof minority interests	-23	0
Thereof equity holders of SUSS MicroTec	-16,391	-190
Earnings per share
Basic earnings per share in 3	-0.97	-0.01
Diluted earnings per share in 3	-0.97	-0.01

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Sales and Earnings +
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07/01 – 09/30/2008 07/01 – 09/30/2007

Group	Discontinued operations	Continuing operations	Group
22,286	1,316	20,970	34,590
-13,056	-689	-12,367	-33,822
9,230	627	8,603	768
-6,020	-121	-5,899	-6,646
-1,675	-12	-1,663	-1,991
-5,307	19	-5,326	-4,759
			-4,426
399	1	398	1,680
-1,490	-4	-1,486	-1,680
-3,851	510	-4,361	-2,258
-1,012	0	-1,012	-14,796
-4,863	510	-5,373	-17,054
44	-17	61	-273
-4,819	493	-5,312	-17,327
-446	-164	-282	723
-5,265	329	-5,594	-16,604
40	0	40	-23
-5,305	329	-5,634	-16,581
-0.31	0.02	-0.33	-0.98
-0.31	0.02	-0.33	-0.98

		+ SUSS MicroTec AG Nine-month Report 2008

Consolidated Statement of Income (IFRS)

		01/01 – 09/30/2008
in T3	Continuing operations	Discontinued operations
Sales	102,127	2,132
Cost of sales	-74,188	-2,255
Gross profit	27,939	-123
Selling costs	-19,767	-7
Research and development costs	-5,583	0
Administration costs	-14,168	-90
Goodwill Impairment	-4,426	0
Other operating income	3,051	0
Other operating expenses	-3,365	-8
Analysis of net income from operations (EBIT):
EBITDA (Earnings before Interest and Taxes.
Depreciation and Amortization)	651	-228
Depreciation and amortization of tangible assets, intangible
assets and investments in subsidiaries	-16,970	0
Net income from operations (EBIT)	-16,319	-228
Financial income/expense	-331	0
Income before taxes	-16,650	-228
Income taxes	608	0
Net profit or loss	-16,042	-228
Thereof minority interests	-30	0
Thereof equity holders of SUSS MicroTec	-16,012	-228
Earnings per share
Basic earnings per share in 3	-0.95	-0.01
Diluted earnings per share in 3	-0.95	-0.01

• 22

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01/01 – 09/30/2008 01/01/ – 09/30/2007

	Discontinued
Group	operations	Continuing operations	Group
98,651	4,803	93,848	104,259
-55,434	-2,501	-52,933	-76,443
43,217	2,302	40,915	27,816
-19,131	-1,122	-18,009	-19,774
-5,251	-153	-5,098	-5,583
-16,162 0	-299 0	-15,863 0	-14,258 -4,426
923	0	923	3,051
-2,339	-13	-2,326	-3,373
5,077	797	4,280	423
-3,820	-82	-3,738	-16,970
1,257	715	542	-16,547
66	-93	159	-331
1,323	622	701	-16,878
-1,079	-207	-872	608
244	415	-171	-16,270
188	0	188	-30
56	415	-359	-16,240
0.01	0.02	-0.01	-0.96
0.01	0.02	-0.01	-0.96

		+ SUSS MicroTec AG Nine-month Report 2008

Consolidated Balance Sheet (IFRS)

ASSETS
in T3	09/30/2008	12/31/2007
Non-current assets	47,285	58,130
Intangible assets	14,702	19,483
Goodwill	17,708	21,961
Tangible assets	5,500	5,049
Other investments	5	5
Current tax assets	619	619
Other assets	637	519
Deferred tax assets	8,114	10,494
Current assets	104,753	105,000
Inventories	62,322	53,750
Accounts receivable	23,823	25,582
Other financial assets	410	3,023
Securities	4,514	2
Current tax assets	988	847
Cash and cash equivalents	10,794	20,092
Other assets	1,902	1,704
Total assets	152,038	163,130

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Liabilities & shareholders' equity in T3	30/09/2008	31/12/2007
Equity	88,116	102,568
Total equity attributable to shareholders of SUSS MicroTec AG	87,869	102,291
Subscribed capital	17,019	17,019
Reserves	71,578	87,383
Accumulated other comprehensive income	-728	-2,111
Minority interests	247	277
Non-current liabilities	15,215	19,309
Pension plans and similar commitments	2,773	2,738
Provisions	729	737
Financial debt	9,202	9,255
Other financial liabilities	36	51
Deferred tax liabilities	2,475	6,528
Current liabilities	48,707	41,253
Provisions	4,518	2,922
Tax liabilities	767	2,213
Financial debt	4,632	3,184
Other financial liabilities	5,579	4,089
Accounts payable	7,422	8,828
Other liabilities	25,789	20,017
Total liabilities & shareholders' equity	152,038	163,130

			+ SUSS MicroTec AG Nine-month Report 2008

Consolidated Statement of Cash Flows (IFRS)

in T3	01/01 – 09/30/2008	01/01 – 09/30/2007
Net profit or loss (after taxes)	-16,270	244
Amortization of intangible assets	11,341	2,621
Amortization of goodwill	4,426	0
Depreciation of tangible assets	1,203	1,199
Profit or loss on disposal of intangible and tangible assets	76	78
Profit or loss on disposal of assets and liabilities from discontinued operations	0	-103
Change of reserves on inventories	1,812	1,883
Change of reserves for bad debts	49	-351
Non-cash stock based compensation	435	442
Non-cash income from the reversal of provisions	-59	-174
Non-cash interest expenses from increase of convertible debt	12	14
Other non-cash effective income and expenses	-366	2,349
Change in inventories	-9,685	-9,074
Change in accounts receivable	2,228	6,611
Change in other assets	250	-776
Change in pension provisions	35	36
Change in accounts payable	-1,507	619
Change in other liabilities and other provision	7,115	-7,480
Change of deferred taxes	-1,673	624
Cash flow from operating activities – continuing and discontinued operations	-578	-1,238
Cash flow from operating activities – continuing operations	-523	278

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in T3	01/01 – 09/30/2008	01/01 – 09/30/2007
Disbursements for tangible assets	-1,534	-1,597
Disbursements for intangible assets	-6,360	-5,346
Purchases of current available-for-sale securities	-10,524	0
Proceeds from sale of current available-for-sale securities	6,012	0
Proceeds from disposal of intangible and tangible assets	11	6
Proceeds from non-current assets held for sale	1,906	1,000
Cash flow from investing activities – continuing and discontinued operations	-10,489	-5,937
Cash flow from investing activities – continuing operations	-12,395	-5,912
Increase of bank loans	0	0
Repayment of bank loans	-684	-1,786
Repayment of convertible bond	0	0
Change in current bank liabilities	2,122	296
Change in other financial debt	-43	-127
Proceeds from issuance of common stocks	0	32
Cash flow from financing activities – continuing and discontinued operations:	1,395	-1,585
Cash flow from financing activities – continuing operations:	1,395	-1,439
Adjustments to funds caused by exchange-rate fluctuations	374	-411
Change in cash and cash equivalents	-9,298	-9,171
Funds at beginning of the year	20,092	20,459
Funds at end of the period	10,794	11,288
Cash flow from operating activities includes:
Interest paid during the period	379	342
Interest received during period	498	422
Tax paid during the period	1,982	873
Tax refunds during the period	470	402

		+ SUSS MicroTec AG Nine-month Report 2008

Consolidated statement of shareholders' equity (IFRS)

in T3	Subscribed capital	Additional paid-in capital
As of January 1, 2007	17,007	91,573
Issuance of shares: Exercise of stock options	12	20
Issuance of subscription rights		442
Net profit loss or loss
Unrealized loss from securities net of tax
Foreign currency adjustment
As of September 30, 2007	17,019	92,035
As of January 1, 2008	17,019	92,212
Issuance of subscription rights		435
Net profit loss or loss
Foreign currency adjustment
As of September 30, 2008	17,019	92,647

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Equity	Minority interests	Total equity attributable to shareholders of Suss MicroTec AG	Accumulated other comprehensive income	Retained earnings	Earnings reserve
99,155	163	98,992	-354	-9,667	433
32		32
442		442
244	188	56		56
-6		-6	-6
-766		-766	-766
99,101	351	98,750	-1,126	-9,611	433
102,568	277	102,291	-2,111	-5,262	433
435		435
-16,270	-30	-16,240		-16,240
1,383		1,383	1,383
88,116	247	87,869	-728	-21,502	433

		+ SUSS MicroTec AG Nine-month Report 2008

Segment Reporting (IFRS)

Segment information by business segment

	Lithography		Substrate Bonder		Test Systems
in T3	9M/2008	9M/2007	9M/2008	9M/2007	9M/2008	9M/2007
External Sales	68,359	53,961	11,006	11,524	18,355	18,929
Internal Sales	0	0	0	0	0	0
Total Sales	68,359	53,961	11,006	11,524	18,355	18,929
Result per segment	13,953	5,436	-7,776	-1,446	-2,335	333
Significant non-cash items	-1,563	-1,202	-2,007	-271	-1,034	-71
Segment assets	67,652	59,010	29,045	21,334	16,466	16,422
– thereof Goodwill	13,599	13,599	0	0	4,109	4,143
Unallocated assets
Total assets
Segment liabilities	-24,433	-16,984	-6,408	-4,839	-4,087	-3,261
Unallocated liabilities
Total liabilities
Depreciation and amortisation	1,695	2,391	1,520	790	278	247
– thereof scheduled	1,695	2,391	878	790	278	247
– thereof impairment loss	0	0	642	0	0	0
Capital expenditure	1,848	1,525	2,289	2,952	283	280
Average workforce during the year	358	359	116	108	156	157

Segment information by region

	Sales		Capital expenditure		Assets
in T3	9M/2008	9M/2007	9M/2008	9M/2007	9M/2008	9M/2007
Europe	35,161	31,403	5,330	3,411	82,156	74,751
North-America	25,283	32,234	2,459	3,270	37,843	40,957
Japan	10,821	10,370	80	195	5,079	4,610
Rest of Asia	32,859	24,616	25	67	630	625
Rest of world	135	28	0	0	0	0
Consolidation effects	0	0	0	0	-1,653	-3,553
Total	104,259	98,651	7,894	6,943	124,055	117,390

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		Consolidation		Discontinued		Continuing
Total		effects		operations		operations		Others
9M/2008 9M/2007	9M/2007	9M/2008	9M/2007	9M/2008	9M/2007	9M/2008	9M/2007	9M/2008
104,259 98,651	–	–	4,803	2,132	93,848	102,127	9,434	4,407
0	-4,825	-4,288	0	0	4,825	4,288	4,825	4,288
104,259 98,651	-4,825	-4,288	4,803	2,132	98,673	106,415	14,259	8,695
-16,547 1,257	–	–	688	-188	569	-16,359	-3,754	-20,201
-17,624 -1,800	–	–	173	-174	-1,973	-17,450	-429	-12,846
124,055 117,390	–	–	1,164	685	116,226	123,370	19,460	10,207
17,708 22,206	–	–	0	0	22,206	17,708	4,464	0
29,685 28,239
153,740 145,629
-40,203 -31,383	–	–	-2,184	-786	-29,199	-39,417	-4,115	-4,489
-23,719 -15,145
-63,922 -46,528
16,970 3,820	–	–	6	0	3,814	16,970	386	13,477
3,882 3,820	–	–	6	0	3,814	3,882	386	1,031
13,088	–	–	0	0	0	13,088	0	12,446
7,894 6,943	–	–	9	0	6,934	7,894	2,177	3,474
725 760	–	–	40	1	720	724	96	94

		+ SUSS MicroTec AG Nine-month Report 2008

+ + + Selected Explanatory Notes

to the Interim Report of SUSS MicroTec AG as of September 30, 2008

1. General accounting policies

The consolidated financial statements of SUSS MicroTec AG as of December 31, 2007 were prepared in accordance with International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB) and valid as of the balance sheet date. The interim Group financial statements as of September 30, 2008, which have been prepared in accordance with International Accounting Standard (IAS) 34 "Interim Financial Reporting", have been drawn up using the same accounting methods as in the 2007 Group financial statements.

All interpretations of the International Financial Reporting Interpretations Committee (IFRIC), which are mandatory as of September 30, 2008 have also been applied.

For additional information on the individual accounting methods applied, please refer to the consolidated financial statements of SUSS MicroTec AG as of December 31, 2007.

The interim financial statements were neither audited by the group's auditors, KPMG Deutsche Treuhand-Gesellschaft, Aktiengesellschaft, Wirtschaftsprüfungsgesellschaft, nor did they undergo an auditing review.

All amounts are indicated in thousands of euros (T3) unless otherwise noted.

2. Changes in the Group structure

• 32

The financial statements of SUSS MicroTec AG and all of the major companies for which there is a group control option according to the control principle, irrespective of the level of participating interest, are included in the consolidated financial statements. With respect to the consolidated financial statements as of December 31, 2007, there were no changes within the consolidated group.

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3. Discontinued operations "Device Bonder"

By purchase contract dated 16 July 2007, SUss MicroTec AG sold its business with Device Bonders. Under an asset deal, all material assets and liabilities of the Device Bonder business of Suss MicroTec S.A.S. were sold. Parties to the purchase contract agreed, that Suss MicroTec S.A.S. is entitled to realize the backlog of Device Bonders as existing at Closing. Out of this realization the Group generated revenues of 3 2.1 million in the first nine months, that is shown under "Discontinued operations" in the Consolidated Income Statement.

SUSS MicroTec AG expects the complete realization of the existing Device Bonder backlog latest until the end of this year.

4. Reportable matters

After nine months, the operating result of SUSS MicroTec AG amounts to 3 -17.1 million (9M 2007: 3 -4.9 million ). This result was affected by extraordinary expenses totalling 3 18.3 million. These primarily consisted of:

+ Write-downs on capitalized development costs for C4NP amounting to 3 8.0 million

Aside from the initial installation at IBM, it will most likely not be possible for the Group to acquire any additional customers this year. With this in mind, a performed Impairment Test resulted in the writing-down of 3 8.0 million in capitalized development costs, in addition to the planned write-down of 3 0.4 million.

+ Impairment of 3 4.4 million on the goodwill of the subsidiary Image Technology Inc.

The valuation of the US subsidiary Image Technology Inc. also needed to be adjusted based on changed sales and earnings situation. The reason for the considerably slower development is problems experienced with a key customer. These issues have negatively affected the entire business outlook and are on top of the already difficult market conditions in the mask industry. With the cost reduction measures already implemented at the subsidiary, the Management Board believes that the foundation for a successful future development – even at a strong reduced sales level – has been laid. Based on this, a corresponding correction of 3 4.4 million to the balance sheet value of the goodwill was necessary.

					+ SUSS MicroTec AG Nine-month Report 2008

Furthermore, inventories were written-down by 3 2.7 million. Write-downs mainly affected materials, supplies and demo equipment without any current market potential due to new technological developments.

In addition, the Group result was affected by restructuring expenses of 3 0.8 million resulting from headcount reduction measures and by a value adjustment on a customer-specific project equalling to 3 1.9 million.

Extraordinary expenses sum up to 3 18.3 million, of which only 3 0.8 million affected cash flow.

In the first nine months of the fiscal year, SUSS MicroTec AG invested parts of its liquidity funds in available for sale securities. The securities concerned are corporate bonds bearing variable interest linked to EURIBOR. The securities purchased are all from corporations with an investment grade rating. The securities have been measured at fair value. Any fluctuations in the market price are recorded under equity in accumulated other comprehensive income and therefore do not affect profit and loss. As of September 30, 2008 SUSS MicroTec AG held securities in an amount of 3 4.5 million.

As in the last quarter of the prior year SUSS MicroTec AG converted further portions of its intragroup foreign currency loans to Suss MicroTec Inc. into loans with an indefinite term. In accordance with IAS 21, instead of presenting the effects from the measurement as at the balance sheet date in the income statement, the company now presents them in accumulated other comprehensive income. Furthermore, SUSS MicroTec AG has converted a portion of the existing indeterminate loan to Suss MicroTec Inc. into equity. The debt-/equity-ratio is such as to optimize the tax deductibility of the interest expense at this company.

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The Group made an investment of 3 2.6 million (9M 2007: 3 0.0 million) in its new ERP-software SAP. First Group companies successfully started to work with SAP with effect from July 1, 2008.

There were in the interim reporting period no other events or matters affecting assets, debts, equity, period result or cash flow that were unusual in terms of their nature, extent or frequency.

5. Change in presentation

Differently to the treatment in the consolidated financial statements as at 31 December 2007, SUSS MicroTec AG has adjusted the presentation of the employee numbers in the segment reporting. In the present interim reporting period the employees in the Group's administrative areas have been allocated to the segment for which they are mostly active. Previously these employees had been allocated to the segment "Other". The presentation in the corresponding prior year period has been adjusted.

As a further change in the segment reporting, a slight adjustment has been made in the determination of the segment result, which now also contains income and expenses from the translation of foreign currency and from disposals of assets. Both effects on results have been allocated to the segment "Other". In total, the results of the segments now correspond to the operating result, i.e. EBIT, of the Group. Here, too, the presentation of the corresponding prior year period has been adjusted.

	+ SUSS MicroTec AG Nine-month Report 2008

6. Revision of estimates

If estimates were made within the scope of the interim reporting, they shall remain essentially unchanged in methodology within the fiscal year and in the fiscal year comparison.

Due to extraordinary expenses in the third quarter of the fiscal year SUSS MicroTec AG changed its estimate for the corporate tax rate and is now expecting a tax rate, which will not be in the order of magnitude of the expected corporate tax rate of about 28%. The main reason for that is, that the capitalization of Suss MicroTec Inc.'s 2008 tax loss as a deferred tax asset is not applicable due to the existing loss history of this company. In addition, the impairment on Image Technology Inc.'s goodwill, is not tax deductible.

Due to these effects, the Group expects to disclose a tax expense for the fiscal year 2008 despite its negative result.

Furthermore, there were no changes subject to reporting requirements that have a significant impact on the current interim reporting period.

7. Debenture bonds or equity securities

No issues, buybacks or repayments were effected during the reporting period, either for debenture bonds or for other equity securities.

8. Dividends paid

• 36

No dividends were paid out or proposed for disbursement during the reporting period.

9. Significant events after the close of the interim reporting period

On the meeting at October 2, 2008 the Supervisory Board of SUSS MicroTec AG decided to relieve management board member Dr. Stefan Schneidewind from his position as CEO. Dr. Schneidewind left the board with immediate effect due to differing views regarding the future strategy of the Company. The Supervisory Board nominated Christian Schubert to the Management Board with immediate effect. His area of responsibility will correspond basically to that of a COO. Christian Schubert will take over the Management Board role on an interim basis. Over the medium term, the Management Board team is to be supplemented by a Board member with a technical background.

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Until the announcement of Q3 figures on October 22, 2008, the Group could rely on an extension of its long-standing domestic credit line. The credit line, which had been granted by a consortium of three banks, expired on September 30, 2008. It had been primarily used as security for down payment guarantees and has not yet been renewed by the bank consortium. The Management will continue discussions in order to secure a similar credit line and, in particular, to comprehensively use the liquidity of prepayments received.

Mr. Tito Tettamanti, United Kingdom, has informed SUSS MicroTec on October 23, 2008, in accordance with section 21 para 1 WpHG (German Securities Trading Act) that his share in the voting rights of SUSS MicroTec AG, Garching, Germany, exceeded the 20% threshold on October 22, 2008 and now amounts to 20,073% (Amount of Shares: 3,416,191 of 17,019,126 of outstanding shares). 20.073% of the voting rights (3,416,191 voting rights) are attributed to Mr. Tito Tettamanti in accordance with sec. 22 para. 1 sentense 1 no. 1 of the WpHG.

The voting rights attributed to him were held via the following companies controlled by him, whose share of the voting rights in SUSS MicroTec AG amounts to 3% or more in each case:

• + Gritlot Limited, Douglas, Isle of Man
• + Sterling Strategic Value Limited, Tortola, BVI

Gritlot Limited, Douglas, Isle of Man, have informed SUSS MicroTec on October 23, 2008, in accordance with section 21 (1) WpHG (German Securities Trading Act) that its share in the voting rights of SUSS MicroTec AG, Garching, Germany, exceeded the 20% threshold on October 22, 2008 and now amounts to 20.073% (Amount of Shares: 3,416,191 of 17,019,126 outstanding shares). 20.073% of the voting rights (3,416,191 voting rights) are attributed to Gritlot Limited in accordance with sec. 22 para. 1 sentense 1 no. 1 of the WpHG.

	+ SUSS MicroTec AG Nine-month Report 2008

The voting rights attributed to Gritlot Limited were held via the following companies controlled by Gritlot Limited, whose share of the voting rights in SUSS MicroTec AG amounts to 3% or more in each case:

+ Sterling Strategic Value Limited, Tortola, BVI

Sterling Strategic Value Limited, Tortola, British Virgin Islands, have informed SUSS MicroTec on October 23, 2008, in accordance with section 21 (1) WpHG (German Securities Trading Act) that its share in the voting rights of SUSS MicroTec AG, Garching, Germany, exceeded the 20% threshold on October 22, 2008 and now amounts to 20.073% (Amount of Shares: 3,416,191 of 17,019,126 outstanding shares).

There were no significant events subject to reporting requirements after the close of the reporting period.

10. Contingent liabilities and contingent claims

There are no contingent claims. There were no significant changes in contingent liabilities with respect to the reporting time frame of December 31, 2007.

11. Earnings per share

• 38

The undiluted earnings per share are determined by dividing the net income for the period accruing to the shares (after minority interests) by the average number of shares.

To determine the diluted earnings per share, the profit for the period to be attributed to the shareholders (after minority interests), as well as the weighted average of the shares in circulation, must be adjusted for the effects of all potentially diluting shares.

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+ + Legal Structure of the Group

			+ SUSS MicroTec AG Nine-month Report 2008

+ + + Financial Calendar 2008/2009 +

November, 5	2008 Nine-month Report
November, 10 – 12	German Equity Forum, Frankfurt/Main
March, 26	2008 Annual Report
May, 7	2009 Quarterly Report
May, 7	DVFA-Analysts' Conference, Frankfurt/Main
June, 24	Shareholders' Meeting
August, 6	2009 Interim Report
November, 5	2009 Nine-month Report

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+ Imprint + + +

Published by: SUSS MicroTec AG Edited by: Investor Relations, Finance

Contact

Investor Relations Fon: +49 (0)89-32007-161 e-mail: ir@suss.com

Concept and design: IR-One AG & Co., Hamburg Printer: Hartung Druck + Medien GmbH, Hamburg Translation: EnglishBusiness GbR, Hamburg

Forward-looking statements: These reports contain forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates, and projections, and should be understood as such. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update any of them in light of new information or future events. Forward-looking statements involve inherent risks and uncertainties. We caution readers that a number of important factors could cause actual results or outcomes to differ materially from those expressed in any forwardlooking statement.

+ + + + + +

SUSS MicroTec AG Schleißheimer Strasse 90 85748 Garching, Germany Fon: +49 (0)89-32007-0 e-mail: info@suss.com

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