Varian Semiconductor Introduces the Productivity Plus Upgrade; Upgrade Boosts Production Output by Over 30% in Customer Tests on E220 and E500 Ion Implanters.

Business Editors/High-Tech Writers

GLOUCESTER, Mass.--(BUSINESS WIRE)--June 24, 2003

Varian Semiconductor Equipment Associates, Inc. (NASDAQ: VSEA), a leading supplier of ion implantation systems, today introduced the Productivity Plus upgrade for its E220 and E500 medium current ion implanters for 150mm and 200mm wafer processing.

"Customer testing of Productivity Plus has demonstrated as much as a 30-percent and more increase in the production output capability of E-series implanters," said T.T. Robertson, director of business development for Varian Semiconductor. "Due to these dramatic results, and the fact that this upgrade increases capacity without investing in additional implanters or fab space, our customer has ordered Productivity Plus for all of its E-series implanters in their fab. Essentially, it is the fastest and most cost-effective way to add capacity to E220 and E500 ion implanters."

Varian Semiconductor continually offers a broad range of upgrades to increase the value delivered to its customers. These upgrades are designed to raise productivity, increase tool uptime, reduce maintenance, simplify operation, boost yields and provide flexibility for new applications on Varian Semiconductor's installed base of ion implanters. "Customers continue to choose Varian Semiconductor not only for the advanced capabilities of their latest VIISta(TM) tools, but for their track record in maintaining that value over time," Robertson continued. "These upgrades have tremendous value for our customers and enable them to keep their tools productive and technically capable without major facility changes, tool installations and major requalifications. The ability to respond quickly to the changing market without major capital expenditures makes upgrading tools an easy decision for market leaders."

Known as "proven workhorses," Varian Semiconductor's single wafer E-series tools are the most commercially successful ion implanters of all time, with an installed base of over 800 systems. The E-series tools have led the industry in process control and yield enhancements and are the foundation for Varian Semiconductor's single wafer VIISta platform, which integrates the process advantages of the single wafer and parallel ion beam systems.

About Varian Semiconductor

Varian Semiconductor Equipment Associates, Inc. is a leading producer of ion implantation equipment used in the manufacture of semiconductors. The company is headquartered in Gloucester, Massachusetts, and operates worldwide. Varian Semiconductor maintains a web site at www.vsea.com. The information contained in the company's web site is not incorporated by reference into this release, and the web site address is included in this release as an inactive textual reference only.

Note: This release contains forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. For this purpose, the statements concerning the company's performance, market share and technology leadership, technological capabilities and benefits are forward-looking statements and any statements using the terms "believes," "anticipates," "expects," "plans," or similar expressions are forward-looking statements. There are a number of important risks and factors that could cause actual events to differ materially from those suggested or indicated by such forward-looking statements. These include, among others, volatility in the semiconductor equipment industry; economic conditions in general and as they affect the company's customers; significant fluctuations in the company's quarterly operating results; the impact of rapid technological change; the company's dependence on the development and introduction of new products; the company's concentration on ion implantation systems and related products; concentration in the company's customer base and lengthy sales cycles; the highly competitive market in which the company competes; risks of international sales; foreign currency risks; and general economic conditions; and other factors identified in the company's Annual Report on Form 10-K, and the most recent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission. The company cannot guarantee any future results, levels of activity, performance or achievement. The company undertakes no obligation to update any of the forward-looking statements after the date of this press release.