Varian Semiconductor Receives Order for Multiple Systems From Austria Mikro Systeme International AG.

Business Editors

GLOUCESTER, Mass.--(BUSINESS WIRE)--May 7, 2001

Varian Semiconductor Equipment Associates, Inc. (NASDAQ: VSEA), a leading supplier of ion implantation systems, today announced that Austria Mikro Systeme International AG (AMS) has purchased both medium current EHPi 500 and high current VIISion 80 PLUS ion implanters. These systems will be installed for the first phase of production at the new AMS2000 200mm production line in Unterpremstatten, Austria.

"Varian Semiconductor's EHPi 500 and VIISion 80 PLUS ion implanters will be used in the production of application-specific integrated circuits (ASICs) for automotive, telecommunication and industrial applications," said Gerhard Richter, project manager of AMS2000 at Austria Mikro Systeme International AG. "To meet our customers' needs we implemented a production strategy based on high equipment reliability and flexibility. Both the EHPi 500 and VIISion 80 PLUS offer exceptional flexibility for our ASIC integrated circuit fabs. Varian Semiconductor's tools are world-class industry workhorses that provide the quick change capability we need to manage our large product library. The new 200mm wafer fabrication facility of AMS is furnished with state of the art production equipment and allows implementation of deep submicron technologies. Aside from multiple capacity, AMS will afford its customers a significant increase in innovative solution options of mixed signal ASICs and ASSPs."

Since its introduction in 1989, Varian Semiconductor's E-Series implanters have been the tools of choice for more medium current installations than any other system - almost 800 to date. The EHPi 500 is best known for its exceptional performance in controlling threshold voltage adjust (Vt) implants, providing wider energy ranges, and high-throughput factory automation compatibility. The VIISion 80 PLUS implanter demonstrates production leadership in the areas of charge control, dose repeatability, and metal and particle performance.

"We are delighted that AMS has chosen Varian Semiconductor as its ion implant supplier at its new 200mm production line," stated Ernest Godshalk, president and chief operating officer of Varian Semiconductor. "It's an exciting time for AMS, and we look forward to providing our advanced technology solutions for their AMS2000 project and to cultivating our new business relationship."

About Varian Semiconductor

Varian Semiconductor Equipment Associates 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 our web site is not incorporated by reference into this release, and our web site address is included in this release as an inactive textual reference only.

Note: This press 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 operating outlook, market share and technology leadership are forward-looking statements. There are a number of important 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 and 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; 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.