8-K

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549


                                    Form 8-K

                                 CURRENT REPORT

     Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  August 29, 2006
                                                   ---------------


                           Ibis Technology Corporation
                           ---------------------------
             (Exact name of registrant as specified in its charter)



Massachusetts                        0-23150                     04-2987600
- -------------                        -------                     ----------
(State or other jurisdiction        (Commission                (IRS Employer
of incorporation)                   File Number)             Identification No.)


32 Cherry Hill Drive, Danvers, Massachusetts  01923
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(Address of principal executive offices)         (Zip Code)


Registrant's telephone number, including area code:  (978) 777-4247
                                                     --------------


Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):

[] Written communications pursuant to Rule 425 under the Securities Act
    (17 CFR 230.425)

[] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
    (17 CFR 240.14a-12)

[] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
   Act (17 CFR 240.14d-2(b))

[] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
   Act (17 CFR 240.13e-4(c))










ITEM 8.01.  OTHER EVENTS

On August 29, 2006 Ibis Technology Corporation announced final customer
acceptance for the Ibis i2000 oxygen implanter that was ordered by a leading
silicon wafer manufacturer in October, 2005 and shipped in April of 2006. A copy
of the press release is being furnished as Exhibit 99.1 to this Current Report
on Form 8-K. This information shall not be deemed "filed" for purposes of
Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), or incorporated by reference in any filing under the Securities Act of
1933, as amended, or the Exchange Act, except as shall be expressly set forth by
specific reference in such a filing.

ITEM 9.01.  FINANCIAL STATEMENTS AND EXHIBITS.

(a) Not applicable.

(b) Not applicable.

(c) Exhibits

            Exhibit 99.1.         Press Release Announcing Final Acceptance of
                                  the Ibis i2000 Oxygen Implanter










                                   SIGNATURES


         Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.


                                        IBIS TECHNOLOGY CORPORATION
                                        ---------------------------


Date:  August 29, 2006                     /s/William J. Schmidt
                                  ----------------------------------------------
                                     William J. Schmidt Chief Financial Officer











                                  EXHIBIT INDEX
                                  -------------

Exhibit
Number                     Description
- ------                     -----------

Exhibit 99.1.              Press Release Announcing Final Acceptance of the Ibis
                           i2000 Oxygen Implanter

EX-99.1

                                                                    Exhibit 99.1

 Ibis Technology Announces Final Customer Acceptance of Oxygen Implanter; SUMCO
 grants final acceptance of their second Ibis i2000 implanter; system to begin
                   production of SIMOX-SOI wafers immediately

    DANVERS, Mass.--(BUSINESS WIRE)--Aug. 29, 2006--Ibis Technology
Corporation (Nasdaq NM: IBIS), a leading provider of SIMOX-SOI
implantation equipment to the worldwide semiconductor industry, today
announced final customer acceptance of the Ibis i2000 oxygen implanter
that was shipped to Sumitomo Mitsubishi Silicon Corporation (SUMCO),
the world's second largest silicon wafer manufacturer, in Japan in
April 2006.
    Martin J. Reid, president and chief executive officer of Ibis
Technology Corporation, said, "We are pleased that the SUMCO implanter
has completed the final acceptance process. SUMCO now has two Ibis
i2000 implanters, enabling their production of SIMOX-SOI wafers in
significant quantities in response to increasing demand."
    The Ibis i2000 oxygen implanters were developed specifically for
the cost-effective manufacturing of quality SIMOX-SOI wafers for the
global semiconductor industry. SIMOX-SOI wafers offer a number of
benefits when used as the substrate for the production of advanced
semiconductors, including the reduction of heat that is generated
through electrical leakage within the devices. "With today's
increasing focus on the heat generation problem," said Reid, "there is
an increasing focus on SIMOX-SOI, and SUMCO is well positioned to
provide SIMOX-SOI solutions to their customers."
    As a result of SUMCO's final acceptance of their second i2000
implanter, Ibis plans to recognize revenue of approximately $7 million
for this implanter in the current fiscal quarter, ending September 30,
2006.
    As regards future business, Reid said, "We look forward to the
receipt of additional orders in 2006, although we do not expect that
any such orders would result in additional revenue being recognized in
this year. Due to the lead times involved, we expect revenue from
additional orders will be recognized in 2007 and beyond."

    About SIMOX-SOI

    Silicon-on-Insulator (SOI) refers to a substrate technology where
an insulating layer is formed within a silicon wafer, isolating the
thin top layer of silicon where the active transistors will be
manufactured from the rest of the silicon substrate. The thin buried
oxide layer acts as a barrier that can reduce electrical leakage from
the transistors, resulting in semiconductor devices that are faster
and more power efficient. These benefits make SOI a valuable
technology for chipmakers producing IC's for high performance
applications such as servers and workstations, portable and desktop
computers, wireless communication devices, video game consoles and
automotive electronics.
    Separation-by-IMplantation-of-OXygen (SIMOX) refers to a technique
used to manufacture SOI wafers where an oxygen implanter and an
annealing process are used to create a very thin insulating layer
within the wafer, just below a thin layer of silicon on the top of the
wafer. Ibis believes that, compared to competing technologies, the
SIMOX process offers high quality SOI wafers at competitive costs in
production quantities.

    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) the timing of SUMCO's
ramping to production quantities on the i2000 implanters (ii) customer
interest in and demand for, and market acceptance of, the Company's
SIMOX-SOI technology, (iii) the Company's belief that wafer
manufacturers will become the primary suppliers of SIMOX-SOI wafers to
the chipmaking industry, (iv) the Company's ability to conduct its
operations in a manner consistent with its current plan and existing
capital resources or otherwise to obtain additional implanter orders
or to secure financing to continue as a going concern, (v) the
Company's plan to focus on supplying implanters to wafer
manufacturers, (vi) the Company's expectations regarding future orders
for i2000 implanters, (vii) the adequacy of the Company's cash
resources for continuing and future operations, and (xi) the adoption
rate of SOI technology. 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, cessation as a going concern due to
the depletion of the Company's cash reserves at an unanticipated rate
combined with an inability to obtain customer orders or to secure
financing, 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 an
i2000 can be installed and qualified in fabrication facilities, the
likelihood that implanters, if ordered, will be qualified and accepted
by customers without substantial delay, modification, or cancellation,
in whole or in part, 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, 2005. All information set
forth in this press release is as of August 29, 2006, and Ibis
undertakes no duty to update this information unless required by law.

    CONTACT: Company Contact:
             Ibis Technology Corporation
             William J. Schmidt, 978-777-4247
             Chief Financial Officer
             or
             IR Agency Contact:
             Bill Monigle Associates
             Bill Monigle, 941-497-1622
             President