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AXT, Inc. Announces Preliminary Results for Q3 2008

Company Schedules Third Quarter 2008 Earnings Release for November 3, 2008
FREMONT, CA, Oct 01, 2008 (MARKET WIRE via COMTEX News Network) -- AXT, Inc. (NASDAQ: AXTI), a leading manufacturer of compound semiconductor substrates, today announced that it expects to report total revenues between $17.8 million and $18.2 million for the quarter ended September 30, 2008, with earnings (loss) per share between $(0.03) and $(0.01). These results are preliminary, subject to the Company's management and independent auditors completing their customary review processes. The expected decrease in revenue and earnings per diluted share from its third quarter guidance of revenues between $20.1 million and $20.5 million and earnings per diluted share between $0.03 and $0.05 is attributable to the following: (a) an overall market slowdown and lower than expected demand from customer orders, which also resulted in lower production levels; (b) our continuing efforts to resolve specific product specification issues with a few select customers from the prior quarter; and (c) the unexpected temporary transportation restrictions on raw materials in China during the Beijing Paralympics, which ended September 30, 2008.

The company will announce its full financial results for the third quarter 2008 in a press release immediately following the close of market on November 3, 2008. It will also host a conference call to discuss these results on November 3, 2008 at 1:30 p.m. PST. The conference call can be accessed at (719) 325-4773 (passcode 1344410). The call will also be simulcast on the Internet at Replays will be available at (719) 457-0820 (passcode 1344410) until November 10, 2008. Financial and statistical information to be discussed in the call will be available on the company's website immediately prior to commencement of the call. Additional investor information can be accessed at or by calling the company's Investor Relations Department at (510) 683-5900.

About AXT, Inc.

AXT designs, develops, manufactures and distributes high-performance compound and single element semiconductor substrates comprising gallium arsenide (GaAs), indium phosphide (InP) and germanium (Ge) through its manufacturing facilities in Beijing, China. In addition, AXT maintains its sales, administration and customer service functions at its headquarters in Fremont, California. The company's substrate products are used primarily in lighting display applications, wireless communications, and fiber optic communications. Its vertical gradient freeze (VGF) technique for manufacturing semiconductor substrates provides significant benefits over other methods and enabled AXT to become a leading manufacturer of such substrates, particularly in optoelectronics applications. AXT has manufacturing facilities in China and invests in five joint ventures producing raw materials. For more information, see AXT's website at

Safe Harbor Statement

The foregoing paragraphs contain forward-looking statements within the meaning of the Federal Securities laws, including statements regarding our outlook for the third quarter of 2008 concerning its preliminary third quarter 2008 financial results. These forward-looking statements are based upon specific assumptions that are subject to the company's final completion of its customary review processes for the quarter, which could cause actual results of the company to differ materially from the preliminary results set forth above. Risks to the company's business, including, overall conditions in the markets in which the company competes; market acceptance and demand for the company's products; the impact of the factory closures or other delays by our customers on the timing of sales of products; and other factors are set forth in the company's annual report on Form 10-K and other filings made with the Securities and Exchange Commission.

Wilson W. Cheung
Chief Financial Officer
(510) 683-5900

Leslie Green
Green Communications Consulting, LLC
(650) 312-9060