MKS Announces Results for Fourth Quarter and Fiscal 2003

Continued license growth boosts profitability

Waterloo ON - June 4, 2003: MKS Inc. (MKS) (TSX:MKX) today announced its financial results for the fourth quarter of fiscal 2003 and the year ended April 30, 2003. ¹

Total revenue for the fourth quarter of fiscal 2003 was $9.4 million, an increase of 10 percent or $0.9 million over the third quarter of fiscal 2003 and an increase of 23 percent over the fourth quarter of fiscal 2002. Net income for the fourth quarter fiscal 2003 was $0.6 million, or $0.01 per share, an increase of 60 percent over the third quarter of fiscal 2003 and compared to a net loss of $(0.7) million or $(0.02) per share in the fourth quarter of fiscal 2002.

Revenue for the fiscal year ended April 30 was $31.9 million in fiscal 2003, up 13 percent from $28.1 million in fiscal 2002. The Company's net loss for the fiscal year ended April 30, 2003 was $1.2 million, or $(0.03) per share, an improvement of $3.0 million over the loss of $4.2 million, or $(0.12) per share for the fiscal year ended April 30, 2002.

Momentum within the Company's enterprise software configuration management (SCM) business segment continued during the fourth quarter. Fourth quarter SCM revenues increased to $6.4 million, representing 12 percent increase over SCM revenues of $5.8 million in the third quarter of fiscal 2003 and a 37 percent growth over SCM revenues of $4.7 million in the fourth quarter of fiscal 2002. The Company's cash position improved from $6.2 million to $7.7 million during the quarter.

"We had another excellent quarter with continued license growth driving increased profitability," said Philip Deck, MKS chairman and CEO. "With a strengthening balance sheet and growing profitability we continued to demonstrate MKS's ability to gain marketshare."

"We continued to make steady gains in the fourth quarter, with record enterprise SCM licensing," said Michael Harris, MKS chief operating officer. "The most recent release of our flagship software solution further extends our technology leadership in the industry, which will provide strong momentum over the upcoming year. Our customer base continues to invest in MKS not only for our technology direction, but also for our ability to work with them as partners, understand their requirements, deploy the MKS solution and add immediate enterprise-wide value."

As a matter of policy, MKS has decided not to offer financial results guidance on an ongoing basis, other than to confirm that the positive trends in demand for our products and services continues. This does not however, negate seasonal demand trends that normally result in a decrease in revenue from the fourth quarter to the first quarter. Due to this seasonality, the Company anticipates a modest loss in the first quarter.

Significant Customer Agreements
During the fourth quarter of fiscal 2003 MKS signed significant agreements with global enterprise customers including Abbott Laboratories, GE Marquette Medical Systems, HSBC Plc, HP Services, L-3 Communications, Mentor Graphics, NCR, Towers Perrin, and Philips Medical Systems Technology.

Conference Call Details
The Company will hold a conference call at 5:00 p.m. EDT after close of markets today to discuss its fourth quarter performance and fiscal 2003 results. Interested parties may access the call by dialing 416-695-9702 or 1-888-280-8771. An operator-assisted playback of the call will be available for one (1) week from June 4, 2003 to June 11, 2003 and may be accessed by dialing 416-252-1143 or 1-866-518-1010.

For details and numbers, click here.

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).

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

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 Company's 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
519-883-3252
Email: dsawatzky@mks.com