Front Cover   To Our Shareholders:   + Focused Leadership in RTP & Strip: "The Result on the Wafer Counts"   + Restructuring Reflects our Focused Strategy   + [Graph] Gross Margin   + Future Growth and Market Opportunities   + [Graph] 300 mm Share of WFE Revenue   + [Graph] Technology Node Transitions   FORM 10-K   FORWARD LOOKING STATEMENTS   PART I   + ITEM 1. BUSINESS     + Industry Background     + The Mattson Solution     + The Mattson Strategy     + Markets, Applications and Products     + Customer Support     + Sales andMarketing     + Customers     + Backlog     + Research, Development and Engineering     + Competition     + Manufacturing     + Intellectual Property     + Employees     + Environmental Matters     + Available Information   + ITEM 2. PROPERTIES   + ITEM 3. LEGAL PROCEEDINGS   + ITEM 4. SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS   + EXECUTIVE OFFICERS OF THE REGISTRANT     + David L. Dutton„Chief Executive Officer     + Robert MacKnight„Chief Operating Officer     + Ludger H. Viefhues„Chief Financial Officer     + Yasuhiko (Mike) Morita„Executive Vice President, Business Strategy   PART II   + ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS     + Stock Listing     + Dividends     + Private Placement of Stock   + ITEM 6. SELECTED CONSOLIDATED FINANCIAL DATA   + ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS     + OVERVIEW     + CRITICAL ACCOUNTING POLICIES     + Results of Operations     + Years Ended December 31, 2002 and 2001     + Years Ended December 31, 2001 and 2000     + Quarterly Results of Operations     + Liquidity and Capital Resources     + New Accounting Pronouncements     + Mergers, Acquisitions and Dispositions     + RISK FACTORS THAT MAY AFFECT FUTURE RESULTS AND MARKET PRICE OF STOCK   + ITEM 7A. QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK     + Interest Rate Risk     + Foreign Currency Risk   + ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA     + Index to Consolidated Financial Statements   + CONSOLIDATED BALANCE SHEETS   + CONSOLIDATED STATEMENTS OF OPERATIONS   + CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY   + CONSOLIDATED STATEMENTS OF CASH FLOWS   + NOTES TO CONSOLIDATED FINANCIAL STATEMENTS     + 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES       + Risks and Uncertainties       + Basis of Presentation       + Revenue Recognition       + Cash and Cash Equivalents       + Restricted Cash       + Investments       + Concentration of Credit Risk       + Inventories       + Property and Equipment       + Goodwill and Intangibles       + Impairment of Long-Lived Assets       + Warranty       + Stock-Based Compensation       + Foreign Currency Accounting       + Forward Foreign Exchange Contracts       + Comprehensive Income       + Net Income (Loss) Per Share       + Income Taxes       + New Accounting Pronouncements       + Reclassifications     + 2. BALANCE SHEET DETAIL       + INVENTORIES:       + PROPERTY AND EQUIPMENT, NET:       + ACCRUED LIABILITIES:     + 3. ACQUISITIONS       + STEAG Semiconductor Division       + CFM Technologies     + 4. GOODWILL AND OTHER INTANGIBLE ASSETS     + 5. RESTRUCTURING AND OTHER CHARGES       + Workforce reduction       + Consolidation of excess facilities       + Impairment of fixed assets       + Impairment of intangible assets       + Impairment of other long-term assets     + 6. DEBT     + 7. PRIVATE PLACEMENT     + 8. DNS PATENT INFRINGEMENT SUIT SETTLEMENT     + 9. CAPITAL STOCK       + Common Stock       + Stock Option Plan     + 10. INCOME TAXES     + 11. EMPLOYEE BENEFIT PLANS     + 12. NET INCOME (LOSS) PER SHARE     + 13. RELATED PARTY TRANSACTIONS     + 14. REPORTABLE SEGMENTS     + 15. COMMITMENTS AND CONTINGENCIES     + 16. SUBSEQUENT EVENTS   + REPORT OF INDEPENDENT ACCOUNTANTS   + REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS   + ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE   PART III   + ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT   + ITEM 11. EXECUTIVE COMPENSATION   + ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT   + ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS   + ITEM 14. CONTROLS AND PROCEDURES   PART IV   + ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K   + SIGNATURES   + POWER OF ATTORNEY   + CERTIFICATIONS   + REPORT OF INDEPENDENT ACCOUNTANTS ON FINANCIAL STATEMENT SCHEDULE   + VALUATION AND QUALIFYING ACCOUNT   Back Cover