the current subdued level of demand in the market

The devaluation followed a comprehensive review of Inventory held, which concluded that despite the positive long-term outlook for the LED industry, the existing stock held was inappropriately high in comparison to the current subdued level of demand in the market.

These non-cash effects will lead to a negative operating result of ca. EUR 78m in Q3/2012 or ca. EUR 113m for the first nine months of 2012.

However, for fiscal year 2012, AIXTRON expects sequentially stronger fourth quarter revenues, albeit considerably less than previously expected. As a result of the unexpected slower demand recovery, the Company will not report a profit in fiscal year 2012.