Exhibit 99.2

          Ibis Technology to Discontinue Wafer-Manufacturing
       Portion of its Business; Company to continue to focus on
                   its implanter equipment business

    DANVERS, Mass.--(BUSINESS WIRE)--July 21, 2004--Ibis Technology
Corporation (Nasdaq NM: IBIS), a leading provider of SIMOX-SOI
implantation equipment to the worldwide semiconductor industry, today
announced that it has decided to discontinue its wafer manufacturing
business. "For the past several quarters, we have been increasingly
focused on implanter sales and support," said Martin J. Reid,
president and chief executive officer of Ibis Technology Corporation.
"As we have said before, our goal is to be the dominant supplier of
oxygen implantation equipment to the world's silicon wafer
manufacturers so they can, in turn, efficiently and cost-effectively
supply SOI wafers to the global semiconductor industry." Reid further
explained, "We believe that the time to complete the transition has
arrived."
    "From our perspective, the increased interest in our SIMOX
implanters that we are seeing from leading wafer manufacturers is a
signal that it's time for us to concentrate our total efforts on our
equipment business," said Reid. "In years past, we believed that the
wafer-sales portion of our business was necessary because we were
introducing a new technology to the semiconductor industry, and
prospective customers needed a source of wafers for test and
evaluation purposes. Now that some of the world's leading wafer
suppliers are using our implanters to provide SIMOX-SOI wafers for
test, evaluation or production, we believe it makes sense to focus
exclusively on our equipment business."
    Ibis announced the receipt of an implanter order from a "large
silicon wafer manufacturer" on February 5, 2004, and is in advanced
discussions for an additional implanter order from a different silicon
wafer manufacturer. "Based on current discussions the company
anticipates receiving two additional orders by the end of the year,
although we cannot rule out the possibility that these orders may be
delayed or that they will not be received at all," said Reid. "These
recent positive developments associated with the equipment side of the
business finally allow us to close a chapter on our efforts to gain
acceptance of our SOI technology through our wafer business." Reid
also added, "We acknowledge the efforts and contributions of the many
talented engineers and technicians associated with this effort from
the first pioneering steps in this technology through the current
efforts with our primary customers to expand and improve the SIMOX
process to further its acceptance and reliability levels."
    In the past, Ibis sold both wafers and implanters primarily to
semiconductor manufacturers who were evaluating SOI technology. The
company believes, however, the world's leading wafer manufacturing
companies are best-positioned to meet the production demand volumes of
SOI wafers to semiconductor manufacturers. "With SOI's increasing
acceptance, it is reasonable to expect that chipmakers will want to
buy their volume SOI wafer quantities from the silicon wafer
suppliers," said Reid, "considering their economies of scale, cost
efficiencies and manufacturing experience."
    The company believes that the SOI wafer market has grown
substantially during the past few years as more and more semiconductor
device manufacturers appear to have adopted the technology. "We
understand that IBM uses SOI technology in its most advanced
microprocessors, such as the Power 5 that is used in its latest
eServer computers and in Apple Computer's higher-end computers," said
Reid. "Additionally, in recent months, Sony, Toshiba, AMD and
Chartered have announced that they, too, will be utilizing SOI
technology in their future designs. We understand that these
announcements have motivated the silicon wafer manufacturers to become
further involved in the SOI wafer market, and believe that these
manufacturers will contribute significantly to expanding the market
for SOI products. We look forward to working with them to improve the
SIMOX-SOI process and the throughput of our tools, enabling them to
better serve their customers in the emerging SOI market."
    The company also believes that its decision to discontinue the
wafer manufacturing portion of its business will open the door to
broader strategic collaboration efforts between Ibis and the wafer
manufacturers. "To further our ability to work in a collaborative
partnership with the world's leading wafer suppliers, we will be
terminating our sales and marketing agreement with MEMC," said Reid.
Under the terms of the agreement, MEMC served as a global sales
representative for Ibis' SIMOX-SOI wafers.
    Ibis' wafer business has been highly concentrated on providing
wafers for the company's largest customer, and was characterized by
very volatile production volumes and costs associated with periodic
changes and continuing improvements to the process. "The wafer demand
from our largest customer has been, and continues to be, subject to
repeated starts and stops," said Reid. "The result is a wafer business
that is not predictable or profitable. That is one of the major
reasons behind our decision to exit this business. It is also likely
that additional capital investment would have to be made to keep Ibis'
wafer manufacturing processes up to date."
    Given these facts, coupled with the continuing price pressure
already being experienced in the SOI wafer business, the company
believes that continued investment in its wafer manufacturing business
no longer makes sense. "Accordingly," said Reid, "we have decided to
begin the process of discontinuing the wafer business. In that regard,
we have decided to commence discussions with an investment banker
about the potential for a sale of a portion of that business. We
anticipate that the Company will maintain a strong R&D effort for our
equipment improvement programs. In the meantime, we intend to record
the wafer business as a discontinued operation on our books during the
third quarter of 2004."
    Depending on the Company's final disposal plans relative to sale
or closure of the wafer operation, the company may be required to take
cash related charges in the range of $500,000 to $1.0 million, and
take non-cash charges for inventory and certain production assets
associated with the wafer manufacturing business in the range of $1.0
million to $1.5 million by the end of the fiscal year. The Company
plans to maintain a wafer research and development effort focused on
continuous improvement of the equipment capabilities and for
supporting the company's equipment customers' needs at what we expect
will be a significantly reduced cost to the business going forward.
"With this change in our operating structure, we now believe that we
will be in a stronger cash position and, with the reduced monthly burn
rate anticipated in our current forecast, we expect to have sufficient
cash for operations through the foreseeable future or about the next
eighteen months," said Reid.
    In terms of the implanter business, Reid said: "Some of the most
technologically advanced wafer manufacturers have either ordered their
initial implanters from us, or are in discussions to do so. We believe
these leading edge companies will combine their R&D efforts at the
bulk wafer level with their own proprietary solutions for product
enhancement of the SOI layer utilizing our equipment. These
collaborative efforts may take many months to complete, so we believe
it's critical for the front runners to anticipate their requirements
ahead of volume production. We intend to work with these companies
over the next year to continue to develop non-proprietary enhancements
to the equipment for increased throughput and improved cost of
ownership."
    Reid added: "We believe that it is the world's leading chipmakers
who are adopting SOI technology. We also believe that it is the
forward-thinking, technology-leading wafer manufacturers who are most
aggressively pursuing the manufacture of high quality, low cost
SIMOX-SOI wafers. We also believe they are the ones who will be best
positioned to respond to high volume SOI demand."
    In a separate press release issued by Ibis today, the company
reported its second quarter 2004 financial results.

    About Ibis Technology

    Ibis Technology Corporation is a 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. Headquartered in Danvers,
Massachusetts, the company maintains an additional office in Aptos,
California. 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
    This release contains express or implied forward-looking
statements regarding, among other things, (i) customer interest in,
demand for, and market acceptance of, the Company's SIMOX-SOI
technology, and the involvement generally of the silicon wafer
manufacturing industry in the SOI wafer market, (ii) the company's
belief that wafer manufacturers will become the primary suppliers of
SIMOX-SOI wafers to the chipmaking industry, (iii) the throughput and
production capacity of the i2000 implanter for manufacturing 200- and
300-mm SIMOX-SOI wafers (iv) the company's plan to focus on supplying
implanters to wafer manufacturers, (v) the company's expectations
regarding future orders for i2000 implanters, (vi) the company's
expectations regarding future willingness of wafer manufacturers to
purchase equipment from the company, (vii) the adoption rate of SOI
technology, and (viii) the company's expectation of having sufficient
cash for operations. Such statements are neither promises nor
guarantees but rather are subject to risks and uncertainties, which
could cause actual results to differ materially from those described
in the forward-looking statements. Such risks and uncertainties
include, but are not limited to, future continued migration to SOI
technology and market acceptance of SIMOX, the level of demand for the
company's products, the company's ability to pursue and maintain
further strategic relationships, partnerships and alliances with third
parties, the company's ability to protect its proprietary technology,
the potential trends in the semiconductor industry generally, the ease
with which the i2000 can be installed and qualified in fabrication
facilities, the likelihood that implanters, if ordered, will be
qualified and accepted by customers, the likelihood and timing of
revenue recognition on such transactions, the impact of competitive
products, technologies and pricing, the impact of rapidly changing
technology, the possibility of further asset impairment and resulting
charges, equipment capacity and supply constraints or difficulties,
the company's limited history in selling implanters, general economic
conditions, and other risks and uncertainties 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, 2003. All information set
forth in this press release is current as of July 21, 2004 only and
Ibis undertakes no duty to update this information unless required by
law.

    CONTACT: Ibis Technology Corporation
             William J. Schmidt, 978-777-4247
             or
             IR Agency Contact:
             Bill Monigle Associates
             Bill Monigle, 603-424-1184