Exhibit 99.1

Purported Class Action Filed Against Ibis Technology and its Chief
Executive Officer

    DANVERS, Mass.--(BUSINESS WIRE)--Jan. 7, 2004--Ibis Technology
Corporation (Nasdaq NM: IBIS), the leading provider of SIMOX-SOI
implantation equipment and SIMOX-SOI wafers to the worldwide
semiconductor industry, today announced that it has learned that a
purported class action lawsuit was filed on December 29, 2003 in the
United States District Court in the District of Massachusetts against
Ibis Technology and Martin J. Reid, its President and CEO, relating to
certain recent disclosures by the Company. The plaintiffs are seeking
unspecified damages. Ibis Technology believes that the action is
without merit, and it intends to vigorously defend against the suit.

    About Ibis Technology

    Ibis Technology Corporation is the leading provider of oxygen
implanters for the production of SIMOX-SOI
(Separation-by-Implantation-of-Oxygen Silicon-On-Insulator) wafers for
the worldwide semiconductor industry. The company is also the world's
leading producer of SIMOX-SOI wafers. Headquartered in Danvers,
Massachusetts, the company maintains an office in Aptos, California,
as well. Ibis Technology is traded on the Nasdaq National Market under
the symbol IBIS. Information about Ibis Technology Corporation and
SIMOX-SOI is available on Ibis' web site at www.ibis.com.

    "Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995

    Ibis Technology cannot predict the outcome of the lawsuit filed
against Ibis Technology and its CEO. Statements in this press release
regarding this litigation, and any other statements about Ibis
Technology's management's future expectations, beliefs, goals, plans
or prospects, may contain forward-looking statements that are subject
to certain risks and uncertainties. Such statements are based upon
management's current expectations and are subject to risks and
uncertainties that could cause actual results to differ materially
from those set forth in or implied by forward-looking statements,
including, but not limited to, product demand and market acceptance
risks, general economic conditions, the impact of competitive
products, technologies and pricing, the impact of rapidly changing
technology, equipment capacity and supply constraints or difficulties,
limitations on the ability to protect the Company's patents and
proprietary technology, the Company's limited history with regard to
sales of implanters, the cyclical nature of the semiconductor
industry, and other risks and risk factors described in the Company's
Securities and Exchange Commission filings from time to time,
including but not limited to, the Company's Annual Report on Form 10-K
for the year ended December 31, 2002. All information set forth in
this press release is as of January 7, 2004, and Ibis undertakes no
duty to update this information unless required by law.

    CONTACT: Ibis Technology Corporation
             Debra L. Nelson, 978-777-4247