GT Advanced Technologies Completes Restructuring with Streamlining of Operations and New Functional Structure

  GT Advanced Technologies Completes Restructuring with Streamlining of
  Operations and New Functional Structure

Business Wire

NASHUA, N.H. -- January 10, 2013

GT Advanced Technologies (NASDAQ: GTAT) today announced that it is
transitioning to a functional organizational structure from its prior business
unit organization as it continues to streamline operations and position the
company for growth once the markets it serves start to recover.

Under the new structure, sales, service and worldwide operations will be
centralized under the leadership of Dan Squiller, who will continue to report
to president and CEO Tom Gutierrez. Dave Keck, formerly general manager,
polysilicon and photovoltaic equipment, will lead the company’s sales and
service across all businesses, reporting to Squiller. Jeff Ford, vice
president of DSSbusiness development, will continue to have responsibility
for GT's DSS business, leveraging his extensive industry knowledge and
experience to ensure that GT continues to support its DSS customer base as the
company transitions to next generation PV technologies.

The company’s R&D initiatives in next generation solar, Hyperion ion implant
exfoliation and sapphire will be managed under Vikram Singh, executive vice
president, Advanced Systems Development. In addition Dr. Singh remains
responsible for all central engineering support services as well as business
development and product management for the Hyperion and next generation solar
platforms. Dr. P.S. Raghavan, chief technology officer, will be continue to
lead technology development for silicon carbide (SiC) and gallium nitride
(GaN) applications. As a result of the functional realignment, the business
unit general manager positions have been eliminated and Cheryl Diuguid,
formerly general manager of the sapphire business, has left the company.

As previously indicated, the company is scaling back its M&A program in 2013.
As such, the role of chief strategy and new business officer is being
eliminated and David Gray, Ph.D. will be leaving the company effective January
25, 2013. CEO Tom Gutierrez will drive the company’s strategic development
initiatives.

“The new functional structure reflects GT’s continued efforts to streamline
our operations and align our business with current market and business
conditions,” said Gutierrez. “It further minimizes duplication of resources
and provides us with a very efficient platform to grow from in 2013. We are
grateful to Cheryl Diuguid and Dave Gray for the significant contributions
they have made in their tenure with GT and we wish them the best.”

As part of the reorganization of resources, the company is shifting final
development and beta build activities for its HiCz™ product to its Merrimack,
NH facility and will be idling its HiCz® materials pilot manufacturing
facility in St. Louis, MO. As a result, the company will layoff approximately
35 employees in St. Louis. These employees will be provided severance pay,
health and dental benefits and outplacement services.

GT remains committed to the commercialization of the HiCz™ platform, a next
generation PV furnace that will produce N-type silicon wafers to help make
more efficient solar cells, and improve the economics for PV manufacturers by
lowering the cost per watt of solar energy. The company expects to be ready to
offer the HiCz product by mid-2013, but given current market conditions in the
PV industry, orders for the new generation systems may not occur until 2014
when the industry begins to recover. Several HiCz pullers are already
installed and operating in the Merrimack facility where most of the HiCz R&D
team is based.

The company is seeking a strategic partner to purchase the St. Louis
operation. The 67,000 square foot leased facility currently has HiCz tools
installed, representing a capacity of 50MW/~250MT output/~12.5M wafers per
year. The facility is designed to support twice as many tools as currently
installed.

The company estimates that the idling of the St. Louis facility will reduce
its annualized expenses by approximately $15 million, excluding restructuring
charges. The savings related to this action were anticipated and reflected in
the CY13 guidance range provided by the company on December 18, 2012. In
addition, the company expects to incur restructuring and non-cash asset
impairment charges in Q4 2012 and in 2013 related to this action. The company
is evaluating the timing and amounts of the charges and expects to provide
further details on these charges when it reports CY2012 earnings results in
February 2013.

About GT Advanced Technologies Inc.
GT Advanced Technologies Inc. is a diversified technology company with
innovative crystal growth equipment and solutions for the global solar, LED
and electronics industries. Our products accelerate the adoption of new
advanced materials that improve performance and lower the cost of
manufacturing. For additional information about GT Advanced Technologies,
please visit www.gtat.com.

Forward-Looking Statements
Certain of the information in this press release relate to the Company’s
future expectations, plans and prospects for its business and industry that
constitute "forward-looking statements" for the purposes of the safe-harbor
provisions of the Private Securities Litigation Reform Act of 1995, including
but not limited to:the Company is positioning itself for growth once the
markets it serves start to recover; the Company is scaling back its M&A
program in 2013; the Company’s new functional structure further minimizes
duplication of resources and provides the Company with a very efficient
platform to grow from in 2013; the HiCz™ platform will produce N-type silicon
wafers to help make more efficient solar cells, and improve the economics for
PV manufacturers by lowering the cost per watt of solar energy; the Company
expects to be ready to offer the HiCz product by mid-2013 (but given current
market conditions in the PV industry, orders for the new generation systems
may not occur until 2014 when the industry begins to recover); The company
estimates that the idling of the St. Louis facility will reduce the Company’s
annualized expenses by approximately $15 million, excluding restructuring
charges; the CY13 guidance range previously provided by the company on
December 18, 2013; and the Company expects to incur restructuring and non-cash
asset impairment charges in Q4 2012 and in 2013 related to the idling of the
St. Louis facility.These forward-looking statements are not a guarantee of
performance and are subject to a number of uncertainties and other factors,
many of which are outside the Company's control, which could cause actual
events to differ materially from those expressed or implied by the statements.
Other factors that may cause actual events to differ materially from those
expressed or implied by our forward-looking statements include the impact of
continued decreased demand and/or excess capacity in the markets for the
output of our solar and sapphire equipment, general economic conditions and
the tightening credit market having an adverse impact on demand for the
Company’s products, the possibility that changes in government incentives may
reduce demand for solar products, which would, in turn, reduce demand for our
equipment, technological changes could render existing products or
technologies obsolete, the Company may be unable to protect its intellectual
property rights, competition from other manufacturers may increase, exchange
rate fluctuations and conditions in the credit markets and economy may reduce
demand for the Company's products and various other risks as outlined in GT
Advanced Technologies Inc.'s filings with the Securities and Exchange
Commission, including the statements under the heading "Risk Factors" in the
company's quarterly report on Form 10-Q for the fiscal quarter ended September
29, 2012. Statements in this press release should be evaluated in light of
these important factors. The statements in this press release represent GT
Advanced Technologies Inc.'s expectations and beliefs as of the date of this
press release. GT Advanced Technologies Inc. anticipates that subsequent
events and developments may cause these expectations and beliefs to change. GT
Advanced Technologies Inc. is under no obligation to, and expressly disclaims
any such obligation to, update or alter its forward-looking statements,
whether as a result of new information, future events, or otherwise.

Contact:

GT Advanced Technologies
Media
Jeff Nestel-Patt, 603-204-2883
jeff.nestelpatt@gtat.com
or
Investors/Analysts
Ryan Blair, 603-681-3869
ryan.blair@gtat.com
 
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