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MKS Announces Final Third Quarter Results for Fiscal 2004

Waterloo, ON - February 24, 2004: MKS Inc. (MKS) (TSX:MKX) today announced its financial results for the third quarter of fiscal 2004 and the nine months ended January 31, 2004.

Waterloo, ON - February 24, 2004: MKS Inc. (MKS) (TSX:MKX) today announced its financial results for the third quarter of fiscal 2004 and the nine months ended January 31, 2004. 1

Total revenue for the third quarter of fiscal 2004 was $7.2 million, compared to $7.6 million in the previous quarter and $8.5 million in the third quarter of fiscal 2003. Net loss for the third quarter of fiscal 2004 was $(1.1) million, or $(0.03) per share, compared to a net loss of $(0.6) million, or $(0.01) per share in the second quarter of fiscal 2004 and compared to earnings of $0.4 million, or $0.01 per share in the third quarter of fiscal 2003.

Revenue for the nine months ended January 31, 2004 was $22.9 million; an improvement of $0.4 million or 1.6% compared to $22.5 million for the nine months ended January 31, 2003. For the nine months ended January 31, 2004, MKSs net loss was $(1.8) million or $(0.04) per share, compared with a net loss of $(1.8) million or $(0.04) per share for the same period in fiscal 2003.

"MKS made significant progress in implementing our strategy to develop a leading share of the enterprise SCM marketplace. In spite of our progress, we experienced lower new license revenue than had been anticipated," said Philip Deck, chairman and CEO of MKS Inc. "We continue to enjoy a very healthy improvement in our long term sales pipeline not only in terms of overall size, but in the proportion comprised of large companies, in those sectors in which we compete most favourably, and in repeat business from our best customers."

"MKS remains convinced that its Global 1000 enterprise SCM strategy is maturing quickly and will yield improved results over the next few quarters. Moreover, we remain in solid financial condition needed to complete our strategic transition and return to higher rates of revenue growth," said Deck.

The Companys cash position totaled $5.7 million at January 31, 2004. MKS expects to be profitable in the fourth quarter but given the results of the third quarter, has concluded that full year profitability for fiscal 2004 is unlikely. MKS reaffirms its expectation of year over year quarterly revenue growth in its SCM segment for the fourth quarter of fiscal 2004.

Significant Customer Agreements
During the third quarter of fiscal 2004, MKS signed significant agreements with global enterprise customers including Alcatel CIT, Alcon Laboratories, Inc., Amadeus Germany GmbH, Barclays Bank PLC, Bristol-Myers Squibb Company, Caterpillar Inc., Electrolux Home Products, JP Morgan, Iron Mountain Incorporated, NCR GmbH, Northrop Grumman Corporation, and Royal Canadian Mounted Police.

Conference Call Details
MKS will hold a conference call at 5:00pm (Eastern Time) today to discuss its third quarter performance and results. Interested parties may access the call by dialing (416) 695-6140 or Toll Free (800) 446-4472. An operator-assisted playback of the call will be available for one (1) week from February 24, 2004 to March 2, 2004 and may be accessed by dialing (416) 695-5275 or Toll Free (866) 518-1010.

For summarized financial information, please click here.

1 Reported in US dollars under US Generally Accepted Accounting Principles (US GAAP).

About MKS
MKS Inc. (MKS) (TSX:MKX) provides award-winning enterprise software configuration management (SCM) and interoperability software solutions enabling Global 1000 companies to better manage and control the complete process of software development. The Company's family of SCM products offers advanced technology with robust workflow, version control, and impact analysis capabilities. Under its widely known MKS Toolkit brand, MKS provides UNIX-Windows co-existence, and system administration that significantly cut development and administrative costs and reduce time to market while enabling enhanced performance. Founded in 1984 with over 10,000 customers worldwide, MKS has built its brand on the foundation of advanced technology, superior quality and extraordinary customer service. More information about MKS can be found at http://www.mks.com, or by calling 1-800-265-2797 (US & Canada), +49-711-351775-0 (Germany), and +44-1483-733900 (United Kingdom).

MKS and MKS Toolkit are registered trademarks of MKS Inc. All other trademarks mentioned in this release are the property of their respective owners.

This news release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions are intended to identify forward-looking statements. Such statements reflect the Companys current views with respect to future events and are subject to such risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made including those factors detailed from time to time in filings made by the Company with Canadian securities regulatory authorities. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated or expected. The Company does not intend and does not assume any obligation to update these forward-looking statements.

Investor Contact:
Douglas Sawatzky, CFO
519-883-3252

Email dsawatzky@mks.com

 


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