SÜSS MicroTec SE

Quarterly Report • May 16, 2003

I QUARTERLY REPORT JANUARY 1 - MARCH 31, 2003

I KEY FIGURES Q1/2003

Million Euro	Q1/2003	Q1/2002
Net incoming order	25.3	23.8
Net backlog	38.5	52.6
Net sales	17.6	28.9
Equity	111.7	127.3
Equity ratio	69%	61%
Net cash	16.7	17.2
Free cash flow	4.6	6.9
Gross profit	4.7	12.8
Gross margin	27.0%	44.3%
EBITDA	-7.5	-1.9
EAT (Earnings after tax)	-5,8	-1.9
EPS (Earnings per share)	-0.39	-0.13
Employees	756	969

I CONTENTS

Editorial	4
The first Quarter of 2003 at a Glance Microsystems Technology (MEMS) Test Forum Founded	7 7
"LithoFab200" Launched Successfully	8
Cost of Ownership Improved for Customers	9
Sales and Order Entry	10
Sales by Product Line and Region	10
Order Entry by Product Line and Region	11
Financial Data	12
Consolidated Income Statement	12
Consolidated Balance Sheet	13
Consolidated Statement of Cash Flows	14
Consolidated Statement of Shareholders Equity	16
Shares and Options of the Executive Bodies	18
Corporate Calendar	18

I EDITORIAL

Dear shareholders, employees and business partners of SUSS MicroTec AG,

After the new fiscal year's first quarter we look forward to the further course of 2003 with very cautious optimism now that Intel above all, and AMD too, have voiced positive views on further developments. Another reason is the positive new trend in orders, order entry being the fundamental parameter of future business trends at SUSS MicroTec. In the first three months of 2003 we booked EUR 25.3 million in new orders, an increase of 18% on the fourth quarter of 2002 and 6% on the year. At the prior-year quarter dollar exchange rate, the order entry would have totaled more than EUR 27 million.

The upturn in order entry from North America in particular may become the leading indicator of a turning point, with a more widely based upturn apparent in the various market niches. At the present time, however, we cannot hold out the prospect of a fully-fledged and sustained recovery in the semiconductor industry. The situation in the industry remains difficult and the further course of development is hard to forecast.

First-quarter 2003 SUSS MicroTec sales at EUR 17.6 million were once again well below the previous year's level and below our expectations. The low first quarter sales level was influenced mainly by new orders in the previous quarter, which hit an order entry low-water mark. The negative result of EUR -5.8 million after tax and the low gross earnings margin of 27% are due mainly to low sales. For the second quarter we expect sales to increase, but still to be below the previous year's level. Not until the third quarter do we expect a year-on-year sales increase as being possible. Free cash flow, which in the first quarter amounted to EUR 4.6 million, could prove negative in the second quarter, depending on the course of sales during the quarter.

In the prevailing market environment it is all the more important to extend SUSS MicroTec's positioning and adjust structures to market conditions accordingly. A comprehensive SUSS MicroTec Group restructuring was initiated last year and began to have repercussions in the first quarter of 2003. Laying off around 140 employees necessitated adjustments to workflows and responsibilities, leading among other things to unscheduled sales shifts from the first to the second quarter of 2003.

A positive mention must be made of the marked reduction in overhead costs (administration, sales and research). They were down EUR 4.4 million, or 25%, on the year, thereby achieving a fundamental target of the restructuring program.

A further streamlining of organizational structures has resulted from the relocation to Vaihingen of the Singen production facility. Since April, the Spin Coater product line has been manufactured entirely in Vaihingen. We have therefore bundled this important product line's research, development and production know-how at one location and are thereby further improving our competitive edge.

Ensuring the SUSS MicroTec Group's long-term future involves painful staff layoffs, such as when we relocated from Singen to Vaihingen. What is more, we had to decide to lay off over 20 employees at our Dresden location at the end of the first quarter. In summer, about 700 staff will still be employed at SUSS, or approximately 30% fewer than at the beginning of 2002. That, however, makes the commitment of every employee correspondingly more important. Our employees' high level of personal commitment and their identification with the company form the basis and precondition for the group's future success.

With our very good position in the Advanced Packaging, Microsystems Technology, Compound Semiconductor and Test & Measurement markets, the higher order entry level, the further improvement in our cash position and our high equity ratio we have laid important foundations that enable us to look forward in 2003 with the aforementioned cautious optimism in spite of the semiconductor industry's ongoing instability. The positive course, from our point of view, of the SEMICON Europe industry fair at the beginning of the second quarter underscores this viewpoint. This basis for further growth must be stabilized and strengthened over the fiscal year.

We would like to take this opportunity of thanking you, our SUSS MicroTec AG shareholders, employees and business associates, for the support that you have given us in the past and the confidence that you have shown in our company.

Garching, May 2003

Dr. Franz Richter Stephan Schulak CEO CFO

> 6

Microsystems Technology (MEMS) Test Forum Founded

In the first quarter of 2003, SUSS MicroTec founded together with Danish test organization DELTA the world's first test forum for the microsystem technology growth market. The new forum, MEMUNITY (www.memunity.com), offers MEMS manufacturers an opportunity for the first time to have individual test solutions for their microsystems tested and assembled.

MEMUNITY's aim is to advise and support microsystem technology manufacturers in launching and installing MEMS test processes and to jointly promote research in this market of the future. The focus is on developing test procedures for use during production. Testing systems at this stage is the only way to ensure that only functioning microsystems go through to the next, expensive packaging stage.

Drawing up specific test solutions does not commit the customer to MEMUNITY in any way. On receiving the test results, the customer is free to decide whether he would like to buy equipment or to let DELTA test the chips. The interest that has been shown by companies, universities and research institutes in MEMUNITY's services is already substantial. The first test solution, a pressure sensor production test system, has already been taken into operation at DELTA.

After successfully establishing the SECAP consortium for Advanced Packaging, SUSS MicroTec is therefore now implementing in MEMUNITY a trendsetting initiative for its second main market, microsystem technology.

LithoFab200 Launched Successfully

SUSS MicroTec has already booked significant orders for the new system solution LithoFab200. In the first quarter, Osram Opto Semiconductors, a wholly owned subsidiary of Osram and one of the world's leading manufacturer of light-emitting diodes (LEDs), ordered its second LithoFab200.

This system solution combines in one machine the Mask Aligner, Spin Coater and Developer process steps. It is used especially in high-volume production for the compound semiconductor market, in particular in the high-growth LED segment, and significantly improves the cost of ownership (CoO) for customers. Compared with the conventional semiconductor raw material silicon, manufacturing compound semiconductors is much more difficult and expensive. Using the LithoFab200, the number of process steps for the highly sensitive and extremely brittle compound semiconductors is reduced and the production cycle runs more swiftly and smoothly, with the result that the risk of defects being included is greatly reduced.

In developing and launching the LithoFab200 successfully, SUSS MicroTec is able to make further growth progress in the Compound Semiconductor market.

Cost of Ownership Improved for Customers

With the new Mask Pellicle Technology (MPT), SUSS MicroTec is opening up further application areas and further reducing the cost of ownership (CoO) of its products. MPT is used in lithography with SUSS MicroTec Mask Aligners to give the photo mask an extremely thin, Teflon-like protective coating. This Teflon-like protective layer makes the mask impervious to contact with the silicon wafer and permits exposures at very small distances up to contact exposure. Even in the event of intensive contact between the mask and the silicon wafer during a contact exposure, no photoresistance deposits are left stuck to the mask. Using MPT, structural resolution at less than one micron that are customary with a contact exposure can accordingly also be achieved in production conditions on the Mask Aligner. Switching over to the much more expensive stepper technology is therefore no longer necessary in many applications.

By avoiding mask contamination, the aggressive mask cleansing that is otherwise required can also be reduced, thereby prolonging markedly the mask's service life. During critical applications a mask often needs cleaning after a few exposure steps if MPT is not used. Using MPT, the mask can be used for over 1,000 exposures. The new Mask Pellicle Technology thereby reduces significantly the cost of masks for the Mask Aligner and improves the cost comparison between Mask Aligners and the alternative stepper technology markedly in the Mask Aligner's favor.

The total sales of EUR 17.6 million in Q1/2003 is differentiated by product lines and regions as follows

The order entry of EUR 25.3 million in Q1/2003 is differentiated by product lines and regions as follows

I SUSS MicroTec AG CONSOLIDATED INCOME STATEMENT

TEUR	01.01.2002-	01.01.2002-	01.01.2003-
Sales	31.03.2002* 30,263	31.12.2002 132,379	31.03.2003* 18,281
Freight and Commissions	-1,335	-4,864	-702
Net sales	28,928	127,515	17,579
Cost of goods sold	16,126	79,598	12,832
Gross profit	12,802	47,917	4,747
Administration and selling costs	-14,347	-48,006	-10,514
Research and development costs	-2,961	-12,537	-2,436
Amortization of goodwill	0	0	0
Other operative expenses and income	1,162	-401	-26
Foreign currency exchange gains and losses	22	-3,319	-976
Net income from operations	-3,322	-16,346	-9,205
Interest expenses	-358	-1,309	-213
Interest income	174	479	61
Minority	0	6	8
Income before taxes	-3,506	-17,170	-9,349
Income taxes	1,564	8,232	3,540
Net loss / Income	-1,942	-8,938	-5,809
Earnings before Interest and Taxes (EBIT)*	-3,322	-16,340	-9,197
Earnings before Interest and Taxes, Depreciation and
Amortization (EBITDA)*	-1,861	-9,535	-7,515
Per share
Basic earnings per share in EUR	-0.13	-0.60	-0.39
Diluted earnings per share in EUR	-0.13	-0.60	-0.39

Transition to Comprehensive Income

Net loss / Income	-1,942	-8,938	-5,809
Other comprehensive income after tax
Differences in foreign currency translation	281	-3,192	-1,112
Additional minimum liability	0	-42	0
Comprehensive Income	-1,661	-12,172	-6,921

* unaudited

I SUSS MicroTec AG CONSOLIDATED BALANCE SHEET

TEUR ASSETS	31.03.2002*	31.12.2002	31.03.2003*
Cash and cash equivalents	32,791	16,914	18,386
Accounts receivable, net	34,450	34,105	18,807
Other receivables and assets	5,102	9,249	11,228
Inventories, net	64,151	48,062	46,913
Prepaid expenses	881	958	1,311
Deferred tax assets current	6,836	3,405	5,538
Total current assets	144,211	112,693	102,183
Tangible assets	19,811	16,592	15,264
Intangible assets	13,064	9,679	9,115
Goodwill	28,009	28,009	28,009
Investments in subsidiaries	147	148	148
Deferred tax assets long-term	448	4,895	4,286
Other long-term assets	1,830	1,940	2,098
Total assets	207,520	173,956	161,103
LIABILITIES & SHAREHOLDERS' EQUITY
Current bank liabilities	15,577	3,531	1,646
Current lease obligations	507	275	214
Accounts payable	8,062	3,934	4,302
Current portion of pension liabilities	406	223	223
Current portion of long-term debt	1,594	3,546	3,751
Other current liabilities	34,233	24,432	21,148
Total current liabilities	60,379	35,941	31,284
Long-term debt	12,475	14,501	13,117
Leasing obligations	553	613	579
Pension liabilities	3,537	3,580	3,606
Other long-term liabilities	3,300	735	700
Minorty interest on consolidated subsidiaries	0	52	52
Total long-term liabilities	19,865	19,481	18,054
Common stock / Common stock EUR 1,00 par value 22.423
thousand shares authorized Dec 31, 2002 and March 31, 2003,
respectively; 14.957 thousands shares issued and outstanding
Dec 31, 2002 and March 31, 2003, respectively	14,932	14,957	14,957
Additional paid-in capital	79,167	80,911	81,063
Appropriated retained earnings	433	433	433
Retained earnings (current year and brought forward)	32,633	25,637	19,828
Accumulated other comprehensive income	111	-3,404	-4,516
Total shareholders' equity	127,276	118,534	111,765
Total liabilities & shareholders' equity	207,520	173,956	161,103

I SUSS MicroTec AG CONSOLIDATED STATEMENT OF CASH FLOWS

TEUR	01.01.2002- 31.03.2002*	01.01.2002- 31.12.2002	01.01.2003- 31.03.2003*
Cash Flow from operating activities
Net income	-1,942	-8,938	-5,809
Adjustments to equity caused by exchange-rate fluctuations	281	-1,505	-701
Adjustments to reconcile net income to net cash
provided by operating activities
Non-cash stock based compensation	289	1,430	152
Tax effect on expenses of share contribution	0	514	0
In process R&D expenses	0	0	0
Amortization of intangible assets	617	2,200	483
Amortization of goodwill	0	0	0
Amortization of investments	0	0	0
Decrease of investments in subsidiaries caused by
change in consolidation	0	106	0
Depreciation of tangible assets	724	4,174	1,100
Amortization of leased assets	120	547	99
Change of deferred tax assets	-1,540	-2,556	-1,524
Loss / Gain on disposal of assets	253	-20	36
Earnings on investments	0	-1	0
Change in reserves of bad debts	273	-167	-153
Change in reserves on inventory	1,254	811	-720
Changes in assets and liabilities
Change in accounts receivable	16,081	16,866	15,451
Change in inventories	-4,345	15,047	1,869
Change in prepaid expenses	177	100	-353
Change in other assets	-1,638	-5,895	-2,137
Change in accounts payable	585	-3,543	368
Change in other liabilities, provisions and
deferred income	-305	-10,106	-3,284
Change in pension liabilities	-103	-243	26
Change in other long-term liabilities	-207	-2,721	-35
Cash Flow from operating activities	10,574	6,100	4,868

* unaudited

TEUR	01.01.2002- 31.03.2002*	01.01.2002- 31.12.2002	01.01.2003- 31.03.2003*
Cash Flow from investing activities
Payments in tangible assets	-2,153	-2,935	-237
Payments in intangible assets	-1,613	-139	0
Payments for business acquisitions	0	-3,356	0
Proceeds from disposal of tangible and
financial assets	106	203	0
Cash Flow from investing activities	-3,660	-6,227	-237
Cash Flow from financing activities
Increase of bank loans	0	5,677	0
Repayment of bank loans	-967	-2,666	-1,179
Change in current bank liabilities	-13,945	-25,991	-1,885
Finance-lease payments	38	-844	-95
Proceeds from share capital contribution	33,292	34,465	0
Proceeds from issuance of common stocks	0	317	0
Payments for expenses of increase capital	0	-1,376	0
Cash Flow from financing activities	18,418	9,582	-3,159
Net increase / decrease in cash	25,332	9,455	1,472
Adjustments to funds caused by exchange
rate fluctuations	-90	-239	-321
Funds at beginning of the year	7,549	7,698	17,235
Funds at end of the period	32,791	16,914	18,386
Supplemental cash flow information:
Interest paid during the period	566	1,103	221
Income taxes paid during the period including
prepayments	5,573	3,304	69
Disclosure of other non cash activities
Increase of tangible assets under capital lease	90	710	33

* unaudited

I SUSS MicroTec AG CONSOLIDATED STATEMENT OF SHAREHOLDERS EQUITY

	Number of shares in
TEUR	thousands	Common stock
As of 01 January 2002	13,802	13,802
Appropriation based on increase in share capital	1,130	1,130
Appropriation based on issuance of subscription rights
Annual net loss
Foreign currency adjustment net of tax
As of 31 March 2002	14,932	14,932
As of 01 January 2003	14,957	14,957
Appropriation based on increase in share capital
Appropriation based on issuance of subscription rights
Annual net loss
Foreign currency adjustment net of tax
As of 31 March 2003	14,957	14,957

Total	Cumulative other compre hansive income	Profit carried forward	Earnings reserve	Capital reserve
95,356	-170	34,575	433	46,716
33,292				32,162
289				289
-1,942		-1,942
281	281
127,276	111	32,633	433	79,167
118,534	-3,404	25,637	433	80,911
152				152
-5,809		-5,809
-1,112	-1,112
111,765	-4,516	19,828	433	81,063

Shares and options of the executive bodies

	Shares	Options	Shares	Options
	31.12.2002	31.12.2002	31.03.2003	31.03.2003
Executive Board
Dr. Richter	400,000	65,000	400,000	65,000
S. Schulak	0	286	0	286
Supervisory Board
Dr. Süss (Chairman)	1,039,780	0	1,059,780	0
T. Schlytter-Henrichsen (Dep. Chairman)	6,909	0	6,909	0
Dr. Schücking	500	0	500	0
Prof. Heuberger	0	0	0	0
Dr. Sesselmann	0	0	0	0
Horst Görtz	3,894	0		0

Corporate calendar 2003

06.06.	General meeting SUSS MicroTec AG, Munich
14.07.-16.07.	SEMICON West/ Frontend, San Francisco
16.07.-18.07.	SEMICON West/ Backend, San Jose
05.08.	Semiannual report 2003
15.09.-17.09.	SEMICON Taiwan, Taipei
04.11.	Ninemonth report 2003
03.12.-05.12.	SEMICON Japan, Chiba